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International Karting Industry Buyer's Guide

Kart Expo International

Exhibi’S A DIRTY JOB…
By Darrell Sitarz

It seems that it’s that last thing track and club management worries about and the first thing people (racers, their families, and spectators) notice and remember are… trackside restrooms!

Having visited dozens and dozens of racetracks over the past 30-some years, otorInformation and Show Directions

THE RACERS EDGE

TRAILERS – A STAPLE IN KARTING
The first enclosed cargo trailer rolled off the assembly line nearly 50 years ago in 1954. For many years, trailers were “luxury” toys, affordable to only affluent karters. Until more recent times, a homemade or flatbed trailer did just fine, thank you very much.

In the last few years, both the trailer market and the karting landscape have changed. More and more trailers have become available, ranging from basic 8-foot units up to sleek and stylish 40+-foot models complete with living quarters and many amenities. Traditional industry leaders such as Wells Cargo, Pace American and Haulmark have been joined by a number of new manufacturers attempting to tap into the lucrative marketplace.

As karting in the USA has expanded and become a countrywide sport requiring frequent and sometimes lengthy travel to national events, enclosed trailers have become more of a necessity than a luxury. Karters need dependable units to haul and protect their equipment, parts and supplies, and by customizing interiors, they have a complete traveling workshop at their fingertips.

A strong reason for the trailer “boom” in karting is the increasing level of sponsorship. Trailers provide an ideal medium for creative graphics to carry sponsor messages. Not only are the message seen at track, they are seen on highways across the United States.

In general, trailers range from about $2000 for a small basic unit to $8-10,000 for basic mid-size units. The list of accessories and options is endless, ranging from tie-down systems to air conditioning. Wells Cargo alone lists over 160 optional items, and that doesn’t include custom work.

Without a doubt, trailers are on a roll!

GETTING INTO THE TRAILER BUSINESS
If you are a dealer contemplating entry into the trailer business, there are many manufacturers and factors to consider.

As a first step, you must find out which manufacturers are candidates for your business. Most of the large manufacturers give their dealers protected territories and will not allow another dealer in the area.

The next step is to request dealer information packages from as many manufacturers as possible. Armed with information, here are ten important questions and considerations:

1. Is the manufacturer a stable, growing company?
2. What is the manufacturer’s reputation among other dealers and their customers?
3. What is the overall quality of the trailer line?
4. What types of warranties comes with the trailers?
5. Are the manufacturer’s suggested retail selling prices compatible with your market area? Is the profit margin satisfactory?
6. What is the minimum amount of inventory you will be required to carry?
7. What type of parts backup and technical support does the manufacturer offer?
8. Does the manufacturer offer a nationwide dealer referral program (i.e., manufacturer-direct customer inquiries are transferred to dealers)?
9. What type of local and national advertising support can you expect?
10. Does the manufacturer provide free sales literature and point-of-purchase signage?

As in any other business, the manufacturers scrutinize their dealer candidates very closely. They want stable dealerships who will deliver the sales volume and service standards they have set. Be prepared to have a detailed sales history available as well as solid financial and business references.

CHARACTERISTICS OF THE TRAILER BUSINESS
Price-slashing is not prevalent in the trailer business as it is in other parts of the karting industry, through price “adjusting” to the market area is common. A Pace American spokesperson said, “Some dealers are at our suggested price, some over and some under, depending on their area. Because of the protected territories, we don’t have to worry about dealers competing against one another.”

Scott Samuels of Wells Cargo likened shopping for a trailer to shopping for a car. “It’s up to each dealer to decide whether he wants to negotiate,” Samuels said. He emphasized that it is a misconception if customers think they can get a better deal by going direct through a manufacturer. “Customers will get their best deals from our dealers. Any leads that come in to our headquarters office are sent to the local dealer in the area where the lead originated, and dealers must follow-up within 30 days.”

According to Ralph Robinson of Wayside Distributors in Michigan, trailers pretty much sell themselves. “In no way is this a high pressure business,” he said. “We don’t jump on our customers. We let them go through the lot and rely on sales literature and signage to explain the various features.”

Though an influx of new manufacturers may make trailers selection more complicated, Robison noted, “There are a lot of companies out there jockeying for position, but we find our customers sticking with the old stand-bys.”

As to who becomes a new major player in the industry remains to be seen, but it will be difficult to overcome the name recognition, experience and professionalism of the established leaders.

END

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