View Full Version : Economics 101


QSMS_Larry
12-23-2008, 02:25 PM
So you think you want to build a RC Race Track?
You might want to read this first!

As explained by Larry Cross owner of The RC Tracks at Milestone MX Park

As you know there have been many RC tracks come and go. The main reason is economics, too big of an initial investment and not enough income to cover expenses once the track is open.

Let’s take Milestone as an example. The following is just the basic costs.

Cost to build included heavy equipment such as earthmover, grader, roller and bobcat. Several ton of sifted soil/clay brought in. Many gallons of water, sound walls light poles and lighting all done by the owner of the park.

30,000 square feet of asphalt $42,000, pit lanes $4,000, drivers stand $4500, fencing, tables and the list goes on. Money provided by investors who some day would like to get some return on their investment.

Track preparation. You may not realize the amount of work that goes into prepping and maintaining the tracks during an event. For a race on the asphalt the day before the track is completely washed down (water provided by park owner). Trash is picked up around the perimeter and necessary repairs to the retaining walls are made. Then the track is laid out depending on if it is an oval or road course event utilizing various styles of barriers. During the event maintenance is done with the use two large vacuums and a really effective “Little Wonder 5HP blower”.

The Off Road track prep depends on the scale of cars run the last event but as an example when the 1/5 scale cars/trucks run the track basically has to be rebuilt due the severe holes and ruts that develop. On Thursday the Bobcat (not a cheap piece of equipment) is brought in to do the heavy work after which the dirt is heavily watered (water provided by park owner). On Friday the “drag” (relative cheap of equipment but does need to be maintained) is brought in for numerous laps around the track. Combined with lots of water. Final finish work is done by hand shovels and rakes. Fire hoses filled with water to insure solid lane dividers. More water. Every two or three events bring in more sifted soil/clay to improve racing surface. During the event one or two employees to insure track stays moist (lot more water) and surface raceable.

Now we go to running the races. My experience has shown that a successful event cannot be run with volunteers. Many will talk about it but very few actually ending up helping out. That is why I hire individuals to do the various jobs necessary to make things run smoothly. In addition to track personnel race scorers and announcers are needed.

I believe based on the above all racers will reconsider the issue that entry fees will have to increase if RC TRACKS (not just Milestone) will stay in business.

Compared to the cost of a daytrip to Disneyland this information should help all to realize that the $10 Milestone charges to use their facility and the $5.00 to $25.00 (depending on whether it is practice or a race and the scale being raced) the track owner charges is a very nominal cost to “play” with your “big boy toys”.

swtour
12-23-2008, 09:07 PM
I wish Milestone MX Park was closer to me, the asphalt on that track looks really smooth.

But, for me to do 1/10th scale OVAL Pan Car races it doesn't fit within my window of expense.

R/C Oval guys in CAL (1/10th scale) are spread out all over the state, but still only draw roughly 60-75 total at this time, and drawing more than 50 at one place at one time is rare these days.

A normal race that I hold at a rented facility costs me in the neighborhood of $450.00 per day +/- and that is if I work for FREE and don't try to make a couple bucks for my time. On top of that, I try to put a few bucks aside from each race to cover the cost of supplies (printer paper, ink cartridges, wire (used for scoring loop) gorillia tape (used for scoring loop) and any other unforseen expense, plus $$$ to cover web site hosting fees.

If I'm really lucky, I can make around $150 bucks per race to cover my personal time (of which approx 6 hours is spent just traveling to and from most events, plus in the neighborhood of 10-11 hours for the race itself...and time spent putting info on web and other promotion of the events, and behind the scenes stuff.) On a good day it works out to almost $5.00 an hour...

Currently I rent the parking lot at a local HIGH SCHOOL once a month for "local club racing" The expenses for these events are roughly $80.00 per race day for the track, $90+ per day for a portable toilet, $10+ for tape and wire for scoring loop, $5.00 for CHEAP Soda for traction spray, $6-8.00 gas to run generator for power

We usually get approx $200.00 in entries on a race day...which usually JUST covers the expenses...nobody normally makes any money on these races... IF we get a few extra bucks, I try to buy some new track barrier pieces to replace old ones that get broken.

NOTE: We are really fortunate we have our EVENT INSURANCE provided by our Local Hobby Shop (The school requires 2 MILLION in General Liability)

Outlaw 44
12-23-2008, 09:54 PM
We are very lucky to have as many tracks still open these days considering how little a track actually turns in net profit. Let's face it, you run a track mostly because you love to do it.

The only way for a track to make money is through the adjacent hobbyshop and concessions. So if you want your track to be around, support your hobbyshop, it's that simple.

DJ1978
12-25-2008, 06:31 PM
Building and maintaining a track is a big responsibility and expense.
I would never discourage anyone from trying to start up a track, but it is good to be real about the work and committment involved in operating a track.

The dedication required is very real. There are hours and hours of behind the scenes work involved.
Financial investment to start up is large.
The most important issue is the dedication required to promote and expose the hobby to continue to bring in and grow new interest in the hobby.

I would never want anyone to think... if you build it they will come... how will they come if they don't know about it? Why would they come if they aren't sure if they like it?
Rental vehicles and events that allow people to try vehicles out and racing are a crucial aspect of making a track sucesseful.

I run Washtenaw RC Raceway in Ann Arbor, MI. We have averaged over 150 entries a race for the last 7 years. We race every other Saturday in a rented building during the winter.
To be sucessful, it has to be about having a good place to race. Without willing volunteers I could never run this track. BUT.. you have to be in a position and have the committment that if no one shows up.. that you are willing to do ALL the work yourself.