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FOCUS ON EXTRA PROFITS
By Darrell Sitarz

At first blush, one might think that “racing” at an indoor center is where owner/operators derive most of their income but in reality such may not be the case. In many cases, the racing end of the business accounts for only about half of the total income while ancillary products such as food and drink, video games, souvenirs and meeting space accounted for the other half. Obviously the so-called “extras” contributed mightily to the bottom line.

The lesson here is that if you’re operating a small family entertainment center (FEC), stand-alone concession track, race track or indoor karting center, it’s best to examine whether you’re making all the income possible from your customers. And if not, what can be added to your facility to increase revenue?

FOOD
First and foremost is food! Offerings can range from simple items such as hot dogs, hamburgers, pizza and chips to a full service restaurant. This type of service is really not as difficult as it may seem. However, if you feel you can’t handle it or have a lack of proper personnel, hire someone to provide the food service. You can also lease space and take a percentage of sales. Don’t forget to check with your local government officials for the necessary licenses and/or permits.

BEVERAGES
Beverage can also be a big money maker. You can sell soft drinks, bottled water, coffee an juices at a healthy markup. To make is simple, purchase, lease or rent a pop machine or have a small fountain machine installed in your snack bar by your local soft drink supplier. Some suppliers may provide a loaner machine if you sell their products, along with signage to help stimulate sales.

SOUVENIR ITEMS
Race-related gifts, tee-shirts and other souvenir-type items can also add to your coffers. And because these items are non-perishable, they can be sold from season to season. Every kart track and club should have their own custom tee-shirt to sell to patrons and/or members who love to collect them. Your selection of items needn’t be limited to kart-related items either. NASCAR, CART, IRL, Formula 1 and other licensed products are big sellers wherever they are sold.

SELL INFORMATION
Your facility can also sell “information”. Karting and race-related publications are highly sought after. There are a number of magazines and books available from different suppliers who require the purchase of only a few copies at a time to help keep inventory costs down.

AND…
You may want to look into installing video games to occupy customers as they wait for their time to drive. It’s common sense to keep customers busy and spending money while waiting!

Don’t be afraid to experiment to determine what sells best. The initial outlay for equipment and inventory can quickly be turned into profit if properly managed.

Since you have customers “captured” at your facility, sell ‘em what they want! Why? Because that’s more money in your pocket! The real bottom line is that your customers will be happy by being able to satisfy their needs on site, and you’ll be happy with the sound of extra jingling in your pocket.

END

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Kart Marketing Group, Inc.
Post Office Box 101
Wheaton, IL 60189 USA
Telephone: 630-653-7368
Fax: 630-653-2637
Email: karting@msn.com

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