Full Version : Jim Huntsman has a plan
fritz kysar- 06-30-2008
The All-American Soap Box Derby faces a trio of problems: no national sponsor, not enough money, not enough support.
But derby officials are optimistic that this is just another hurdle in what they bill as ''the greatest amateur racing event in the world. ''
''The derby has received last rites on a number of occasions,'' President Jim Huntsman said. ''We want to think a little differently and refresh our brand.''
The Akron organization for gravity-powered racing has unleashed a new business plan to turn its financial tide. This includes raising $2 million to erase its debts and build a foundation that would give it breathing room.
That is a huge goal, given that the derby brought in just $1.8 million last year.
''We need a nice infusion of money that would enable us not to live hand-to-mouth and would let us implement some of our business strategies,'' Huntsman said.
No national sponsor
The challenge comes at a difficult time. This year's 71st All- American Soap Box Derby week begins July 21 at Akron's Derby Downs without a national sponsor.
This is only the sixth time in the organization's history and the first time in a decade that the derby has gone without a sponsor.
In the past, companies such as Goodyear and Home Depot generally contributed about $250,000 a year plus free publicity, said derby Treasurer Jack Engelke of Chicago.
Derby officials have approached ''several, but fewer than a dozen'' potential sponsors without luck since the last title sponsor, Levi Strauss Signature, backed out last fall, derby Chairman Bill Evans said.
Just one year before that, the derby's four-year marketing relationship with NASCAR also hit the rocks.
While derby officials decline to provide specifics, that agreement did not produce the sponsors the derby hoped for and prevented the organization from establishing relationships with companies that competed with NASCAR's sponsors.
''They almost put us under,'' Huntsman said.
The derby's income dropped from $1.4 million in 2004 to $768,709 in 2006, according to the organization's IRS 990 form.
derby01- 06-30-2008
As a businessman, [ derby is supposed to be only a hobby ], if an organization with 1.8 million in revenue, holding only one race a year cannot be profitable, they have way too much overhead. They should be able to manage their inventory delivery systems to prevent having to carry too many dollars month in and out. It is riduculous that they stop all revenue producing sales for 6 weeks each year and then complain about lack of revenue. Top heavy management is my guess. Every time I order an overpriced part, have to order a whole backend set up to get the few bolts I actually need, etc. I feel like I am making a donation. If they want to be a charity, expect sponsors to support them, then open up the books, be transparent and prove the organization is being good stewards of what they have been entrusted with.
fritz kysar- 06-30-2008
The All American needs to be run like a business. They need to make sure the rules they make up allow them to make as much money as possible. They can not keep doing things because that is the way it has always been done. If they can not make money by selling a small bag of bolts then let the racers buy their bolts locally. When the AA continues to make rules that does not seem to be conducive to making money people begin to wonder who is selling the AA their hardware. The AA bylaws allows the board members to self deal but by doing it behind closed doors everything does not seem to be on the up and up. The AA needs to be able to offer their sponsors something in return for their money. The AA already has a great history but they need to work on their recognition. Ask ten strangers about the Soap Box Derby and most of them will think you are talking about the Pine wood Derby or have no idea what you are talking about. I really want to see the AA grow and would be willing deal in the open.
2KWIK- 06-30-2008
NO DOUBT ABOUT IT THEY ARE A BUNCH SELF-SERVING CROOKS,OVER THE YEARS THERE HAVE BEEN OPPORTUNITIES FOR SPONSORS. I EVEN HAND DELIEVERED ONE & DIDN'T EVEN KNOW IT. JUST A REMINDER,''EDDIE LIED'' . FOR ALL YOU 1st TIMERS ENJOY THE SHOW ,THE REAL RACE IS IN SAGINAW. SEE YA , HAL
fritz kysar- 06-30-2008
I hope that the AA race this year is up to previous standards. I would hate to see this years champions be short changed.
DerbyNut- 06-30-2008
Also, Look at the sub par parts that they supply. I heard years ago, that parts were made at tech schools. And I really beleive it. Common, $1 for a 15 cent kingpin. I am suprised they have not outsourced to China yet. Have you seen the new shells????????
scoutdad- 07-03-2008
being in the nut and bolt business I have checked
Akrons prices on hardware, compared to what I sell it for to my regular customers
are not that far out of line
the problem is shipping and handling ,cardboard costs money
if we could wait for US mail parcel post shipping cost on a king pin and washer stack would be about 2 bucks compared to$ 10.00 for UPS
my cost on a box of 100 grade 8 3 1/4" x1/4"x28 is about 50 bucks or .50 cents a bolt when my company buys 10,000 of them
If you want a box of 100 I would charge you about .80
If you came over the counter and bought 1 the charge would be a $1 .00
once again handling
fritz kysar- 07-03-2008
Scoutdad,
The point I was trying to make was with a small volume and small orders I do not think it is possible to turn a profit. You are in the business so maybe you can tell me. Is a person be able to ship enough small orders to cover all the over head (to include his wage) and still have a fair price? Everybody selling hardware on the internet has a minimum order. The only place I know of that you can buy one or two of any hardware is the self help bin at the local Hardware store. If the AA can not make a profit on the hardware why sell it outside the kits?
scoutdad- 07-03-2008
fritz you are right
the money they make on selling bolts, they loose selling or giving away helmets as listed in their tax form
the idea is to build these cars to a spec (aka) blue print them
AND LET THE KIDS RACE !!!!!
a smarter idea would be print descriptions and specs on the nuts and bolts and let us buy them at graingers ,fastenal , zerro_error,the local hardware store or even from me
and get rid of the over head
same with helmets I can go to toys r us, or wallmart and buy a ( bell ) bicycle helmet
why does akron loose money on them?
the problem is what do we do with the good old boys who cheat by modifying parts to gain nano seconds?
DVF281- 07-04-2008
sporty- 07-05-2008
I know I feel that the prices are not so much the issue, the quality is a small issue for us. It's buying sub kits to get one or two parts you need.
I do not simply see how if you have a 501.3.c statis, That the parts are not donated, wood, bolts, and so forth, the same goes for the plastic beads to make the shells in the mold injection machine.
I know dies are not sheap to repair, fix or replace. I do wonder how often the die is polished and if old purple die polish is being used ?
So, if they are getting alot of this donated to them, and then they are selling it, then it's a win win for them.
Anyone have A idea on how many kits they sell a year ?
I have heard the pink and green shells have sold alot, but I am not sure how many were just the shells versus new kits ?
Again, shirts,shorts,socks, jewelery,beach towel,hats, ink pens, folders. I do not see why a deal can't be made with wal-mart,k-mart,shopko, target or someone. to sell apparel ! With the SBD logo and name being sold for use.
They have the button trade for Akron, the kids. why do they not offer a option of sending in a pic and so many to buy for a price ?
A video manual, A speed tip manual. tools.
The market is wide open in alot of area's, that they never even hit upon.
I still say offer colored wheels ! Again, if the vendors who sold or donated most of the wood,parts. then they could darn near make good money on a kit !
Akron is very good at making it look like a grand event, even from the pictures I can see this !
Not all locals or rallies do this. I know we all like to look at, and point right to the top. I am also not saying you or anyone is wrong.
But, I have ran into a few new comers to stock class racing, in rallies and the number one issue is, the guessing game of tail weight and confusion on set up of the car.
Local, I have seen alot of single moms, no dad, trying to get there child into racing and trying their best to make it happen, even at a local I seen this.
It's hard for 1 parent with child, who also has to load and unload cars, that are to heavy for mom, or can not be with their own child when needed.
Spectators need to see interesting racing, most comment on slowness of the the racers. This falls on locals and rallies also. The 2nd thing is alot of them look the same. Meaning, limited colors. You see 10 blue, 10 red, 5 white in stock. once in awhile black,yellow and now green and pink.
I have seen a flood of pink already.
Jamie marshs car comes to mind for a new look for stock or super stock.
Super stock needs some real work, with that design. We might have to jump to masters, if he can not fill that huge cockpit opening anytime soon.
I do not know what the plan is, but I do hope it works and is something most of us will want ! stocks and bonds anyone ?
How much tradition do you keep ? What do you give up to stay going ?
Sporty
mph- 07-06-2008
I handed them the decision makers at a worldwide shipping company. As I understand it instead of creating a sponsorship proposal and setting up a meeting they just called and asked for 50K. Tried to blame the most professional person on the stage at last years All American awards ceremony too!
mph- 07-10-2008
Winnings have not been raised in decades for the AASBD champ
National Spelling Bee winner is provided 40K
The LG National Texting Championship was held yesterday in NYC
Katelyn Dittman, 15, traveled to New York City yesterday for "The National Texting Championship" in Times Square. Katelyn won the Houston regional and will compete against 13 other regional winners for national bragging rights.
Katelyn sends about 3,000 text messages a month, which forced her parents to get an unlimited text messaging plan. They're now hoping it pays off in big dividends -- as in $50,000 for college tuition.
scoutdad- 07-10-2008
how are they going to increase the scholarship ?
when huntsman cant get any sponsors
I would like to see the NDR give out scholarship money
I would even donate the first $50.00 towards it who else is with me
oh yea thats right.... racers in the NDR want a $355.00 solid gold ring
that can sit around and gather dust
mph- 07-10-2008
How are they going to raise the scholarships
Start-bidding out all items/services.
No more inhouse mold making to friends of AASBD that charge several hundred % more for a job
Bid-out the insurance
Bid-out the axles
Contract out the wheels to a company that knows was QA/QC and ISO standards are
These alone should cover the first years increase
Setup with a university a intern program that would result in at least 2 interns who are 3rd year Sports Marketing majors.
Allow these 2 3rd year Sports Marketing handle the national effort. They would have more knowledge and ability that the entire board does
PS College Interns actually pay there Universities to work. No Pay needed. They earn college credit for there internships. Most TV networks, newspapers, magazines and your Gov officals have interns.
Advertize in Boys Life. They used to!
Increase income
Lower the ages to 6 for stock. Why does BMX Karting and Autocross allow kids to race and AASBD does not allow kids younger than 8 to race straight down a hill!
Increase champ winnings* and lower the ages lower the kit cost by contracting out, market to the entire age range not the ever smaller demographic they choose to market to and they will come
Use the extra billites to:
Send out media releases
A few would work under the direction of the interns
Others work on Magazine ads Base pay + commission
Setup AASBD booths at national expos Racer Expo Sema show Scouting Expo ect ect ect
FYI 50K education bonds would not be purchased at face value. They actually cost much less!
Increase trust
Create a membership. Charge a fair amount for the membership, include the magazine.
Members would vote in new Board
Board Members would be limited to 3 years term with one chance for reelections
Run Board meetings according to Roberts Rules of order
Post Board Meeting notes/votes on the website and in the magazine
Post annualy the Statement of Financial Position
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