PDA

View Full Version : Changing up Vesrah contingency for 2015. Suggestions?



Mitch Williams
07-16-2014, 04:02 PM
This year has been a learning experience. The contingency program came about by accident and was the result of us trying to do something to support the folks that support us. Vesrah is a great company with a fantastic product but their distribution system in the US was a little sketchy. The pads were too often on backorder and some new compounds just weren't available. I just wanted to make sure that Vesrah pads were always available to the members of our club at a discount from what they were used to paying. After some negotiation with the great folks at Vesrah and a sizeable investment on my part, I was able to purchase pads at a price that would let me sell them at a discount and still cover the cost of running a contingency program. That was the plan. Here are the two things I've learned so far:

1. The same 15 or 20 people get all the certs at every event.
2. I'm losing money

The money part is my fault and somewhat expected. I didn't get this deal put together until just before the season and another vendor had made a fairly sizeable order of pads so I didn't want to require that pads be bought from me prior to earning certs and leave him stuck with his order of pads. I just wouldn't be the right thing to do. The result is that the first time I saw some customers this year was when they stopped by the trailer to redeem their certs and pick up their free pads. No way around that and I expected it to some degree. It will be better next year and I hope to make up the shortfall with sales from my website http://www.bdtrackside.com

The contingency program will remain unchanged through the end of the season. I'd like to change it up next year to reach a larger percentage of the members and I need suggestions. I currently support 9 big bike sprint classes, expert and novice, as well as payout to the top 3 big bike endurance teams. Minis are well represented as well. Maybe too well. Pads for the minis (can't bring myself to say mini pads) are inexpensive and they last most of the season. Some teams and individuals have already won their pads for this year and next.

The options I have thought of range from lesser payouts and more supported classes, to no contingency at all and deeper discounts for everyone on pads, and every combination of these two ideas. I certainly don't have the answers so I need your ideas. It's your program. Voice your opinion and let me know how you would like it run.

My goal is to get everyone to try Vesrah pads as a "thank you" to Vesrah for supporting Eric and the LSTD team. Every single comment I have received from club members concerning the pads is that they are the best performing, longest lasting pads they have ever used.

Thanks for your time and I look forward to hearing your ideas.

Mitch Williams
Lunatic in Charge
BD Racing

David Kobierowski
07-16-2014, 08:37 PM
Mitch, keep it sample.

Selfishly speaking, I want them to be available at the track and for a fair price. I'd recommend offering a discount instead if having to manage a contingency program.

Thx for what ur doing with Vesrah. BTW, how are those stickers coming? :)

Mitch Williams
07-16-2014, 09:17 PM
I have had those stickers in the trailer for the last two events and for some reason I haven't been able to remember to get them to tech, even with multiple people reminding me that it needs to get done.

Having pads available at the track may or may not be an option next season. I can probably increase the discount a little bit if I don't have to provide trackside support. Eric may not even race CMRA next season but I'd still like to build the Vesrah program within the club. All it takes is a little (very little) extra planning on your part to order pads prior to the race, and I ship them for free.

Thanks for responding. Hopefully we will get some more feedback and shape the Vesrah program into what the club members want.

Brandon Cleland
07-17-2014, 11:42 AM
Mitch,

I am one of those who cashed in contingency and did not buy from you from the get-go. We would have bought from you before the season had we known you were going to be in the game. That's our mistake but I appreciate you sticking by your word and continuing to honor your contingency. If I was you, I would clean that up as you already stated. The idea of a contingency program is to give back to those who have supported your business.


The next thing I would do is limit the contingency to a racers highest finishing class per weekend. You can keep the same number of classes, but instead of paying the winner of CSS and CSB two first place certs, they should only recieve one. If a racer finishes 1st in CSB and 2nd in F1, then they would receive (1) contingency cert for 1st place.

In order to maximize your exposer, you can pay deeper into the field. Instead of paying 1st -3rd, you can pay 1st-5th. 1-$30 2-$20 3-$15 4,5-$10.

You already have an expiration date on your certs, and I would keep that. Be sure to have it where your racers can't add up more than half a season so you aren't giving away pads.

Contingency needs to offer something meaningful to a racer and at the same time give back to the business. Brake pads are difficult because it's not a part that needs to be purchased every race weekend (tires). In addition, the pads are less than $200 so there really isnt a lot of room for margin from the venders standpoint. All of that makes it challenging to offer a contingency program.

Again, I appreciate you helping us out this season and hope you can find a combination that allows you to be profitable and offer racers something to be excited about.

BC

Walter Walker
07-17-2014, 11:52 AM
Mitch, the packets for ECR and MSR or in the mail.

Jeremy Newhouse
07-17-2014, 02:27 PM
Mitch- I placed an order on your website and am looking forward to trying out the Vesrah pads next round at TWS! I don't have any advice regarding the contingency stuff, but thanks for helping out and supporting the club.

Thanks,
Jeremy

Mitch Williams
07-17-2014, 03:48 PM
Mitch- I placed an order on your website and am looking forward to trying out the Vesrah pads next round at TWS! I don't have any advice regarding the contingency stuff, but thanks for helping out and supporting the club.

Thanks,
Jeremy

Just got home from work. Thanks for the order. Pads are on the way.

Mitch Williams
07-17-2014, 03:55 PM
Mitch,

I am one of those who cashed in contingency and did not buy from you from the get-go. We would have bought from you before the season had we known you were going to be in the game. That's our mistake but I appreciate you sticking by your word and continuing to honor your contingency. If I was you, I would clean that up as you already stated. The idea of a contingency program is to give back to those who have supported your business.


The next thing I would do is limit the contingency to a racers highest finishing class per weekend. You can keep the same number of classes, but instead of paying the winner of CSS and CSB two first place certs, they should only recieve one. If a racer finishes 1st in CSB and 2nd in F1, then they would receive (1) contingency cert for 1st place.

In order to maximize your exposer, you can pay deeper into the field. Instead of paying 1st -3rd, you can pay 1st-5th. 1-$30 2-$20 3-$15 4,5-$10.

You already have an expiration date on your certs, and I would keep that. Be sure to have it where your racers can't add up more than half a season so you aren't giving away pads.

Contingency needs to offer something meaningful to a racer and at the same time give back to the business. Brake pads are difficult because it's not a part that needs to be purchased every race weekend (tires). In addition, the pads are less than $200 so there really isnt a lot of room for margin from the venders standpoint. All of that makes it challenging to offer a contingency program.

Again, I appreciate you helping us out this season and hope you can find a combination that allows you to be profitable and offer racers something to be excited about.

BC

Those are great ideas Brandon. If I limit the payout to the racers best finish, as you suggest, I can probably support more classes AND pay deeper into the field. I like it!
As we get closer to the end of the season I can go back over the results and do some "what if" calculations and see how many more racers would benefit and what the cost would be. By then I will have an idea what the total sales for the year will be and how much I can give away and still break even.

Thanks for the input. Keep the ideas coming. This program is for you guys and I want it to be what you want.

Ty Howard
07-18-2014, 01:32 AM
You could also limit the amount of certs you can use for one purchase. For instance only allow one or two certs per pad purchase or limit it to a combined certs amount of $100.

Mitch Williams
07-18-2014, 06:54 AM
You could also limit the amount of certs you can use for one purchase. For instance only allow one or two certs per pad purchase or limit it to a combined certs amount of $100.

Thanks for the response Ty. I don't mind giving out free pads if someone has the certs. They won them and I want them to have them. I guess my question is how to best spread out what I can afford to give to the club. For example, this year I have committed to just over $10,000 in certs, which would equate to about 60 sets of big bike pads at the member discount pricing. I can do dollar amount certs (currently used), discount percentage certs, random drawings, deeper discounts for everyone, some combination of these or something I haven't thought of yet. Just trying to think outside the box. I just have two things to figure out. How much I can give away and how to spread it around to benefit a greater number of riders without screwing the guys at the top who have accomplished so much.

Sandy Kay
07-18-2014, 08:06 AM
Thanks for the response Ty. I don't mind giving out free pads if someone has the certs. They won them and I want them to have them. I guess my question is how to best spread out what I can afford to give to the club. For example, this year I have committed to just over $10,000 in certs, which would equate to about 60 sets of big bike pads at the member discount pricing. I can do dollar amount certs (currently used), discount percentage certs, random drawings, deeper discounts for everyone, some combination of these or something I haven't thought of yet. Just trying to think outside the box. I just have two things to figure out. How much I can give away and how to spread it around to benefit a greater number of riders without screwing the guys at the top who have accomplished so much.

I don't race, so I'm not an expert on this subject. I also don't know how most other vendors do it. But if I read your last post correctly, it looks like you're giving the racer discount in addition to the certs? That's kind of a double hit against you, and you're already donating a good chunk of cash. If that's the case, you might consider no discount on the portion using the certs. Certs based on your regular prices will help offset the losses a little, and it's still very generous.

Rodrigo DaCunha
07-18-2014, 09:46 AM
I placed an order yesterday. Thanks for the quick reply. Looking forward to try them on next week at TWS.

Dean Dufrene
07-18-2014, 11:41 AM
I concur with Ty and Brandon. Top finish and limit the amount you can redeem per purchase. Most racers are paying for pads so a discount at say 25-30% off retail is still a deal for them. Make the certs transferrable. Believe it or not this helps, especially at the end of a season.