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International Karting Industry Buyer's Guide

GO KARTING!
A Guide To The World's Most Popular Motorsport.

Kart Expo International

Approximately five years ago, when the first go-kart tracks opened their doors, visitors filed into dirty, former storage halls (warehouses), smelling of exhaust fumes and oil, in order to experience the thrill of speed “a la Schumacher”.

Following a short introduction by the highly respected, oil-covered mechanic (who was actually an unemployed postman) which was usually very brief and consisting of the question, “ Have you ever driven (a kart) before?” “Okay, let’s get going.” (Soon thereafter) ten wild young speed freaks engaged in a Grand Prix rally lasting 10 minutes, which consisted of ramming each other, cutting curves and driving regardless of the outcome. With a price of 15DM (about $30 US) for 10 minutes of pleasure, the tracks soon lost their attractiveness. Sooner or later, all other tracks in the commuting area of 80km (approximately 50 miles) were tested. After six months, the kart mania (or the novelty) has lost its appeal.

Today’s halls (indoor karting facilities) present themselves in a new light with attached catering facilities where visitors can watch the events on the track on video monitors. The names of the individual drivers are displayed, every round is clocked and times also appear on the monitors. Tracks are built in such a way that they can be divided in two parts. One side is reserved for professionals, the other for the beginners. Cups (trophies) are presented for women’s rallies, there are special children’s events with kiddie karts and the kart sport is marketed as a sport for the broad (general) public. Since 1997, several of the German Kart Championship (DKM) events have been shown on television by DSF. Although this is an indoor sport, the borders have become blurred.

On the 11th of January, 1999, the Association of Indoor and Outdoor Kart Track Operators (IOKV) was founded, which is considered an emergence into the future of the professional industry by the Co-founder and administrative manager Reinhard Menath. The fact alone that professionally operated kart tracks have been in existence for five or six years and that only recently an association was founded to represent the interests of all kart track operators under one roof shows that there were deficiencies. According to Menath, more than 50% of today’s 270 indoor kart tracks (in Germany) are operated unprofessionally. 

“There are approximately five kart tracks in Germany that (actually) make money. (Of the others, one third of all tracks are operated semi-professionally and the remainder show considerable discrepancies, mainly with regard to the financial know-how”, says Menath. 

The Hamburg Fun and Speed Kartbahn is also one of the big money makers on the scene. Amongst other things, manager Jan Wessel see the cause for the facility’s success is the “professional but expensive” preparatory work. The Hamburg track is supported by the real estate company Einsath & Wessel, the owner of the track. A great advantage, as the expenses are limited to the maintenance of the hall; approximately 2 million DM ($4 million US) was invested in 1997 to convert the former archives of a bank into the go-kart facility. 

The costs consist mainly of the relatively expensive ventilation system and the tracks special tarmac mixture, but the design elements not only of the track, but also of the gastronomic facilitates are cost factors that are not to be underestimated. The number one cost (and stress) factor were the licensing procedures based on communal conditions. According to Wessel, the approval was finally granted by a hair’s breath.
 

LACK OF SALES KNOW-HOW

For Reinhard Menath, one of the most important points for the successful operation of a go-kart track is the “seller of the track”. As already mentioned, the problems of most of the German tracks is the lack of sales know-how (marketing). “Today, 60% of the tracks make 60% or more of their money from company (corporate) or event business”, says 
Menath. 

The professional economist Jan Wessel confirms this statement. “Almost 70% of our money is made from companies, for whom we organize sports events, staff incentives or even kick-off meetings. A company used our premises for a start into the new business year with almost 300 employees and customers. The track had been hired for the entire day, and according to the company, all those attending were “absolutely thrilled”. Wessel knows whet he is talking about. Even Mick Jagger drove a few rounds (laps) on this go-kart track during the last Rolling Stones tour.

In addition, there is another point that hardly any operator initially understands: public relations. “However, the go-kart tracks have an advantage with the press. They are a subject not too worn out yet, and driving a go-kart is a big fun factor”, says Jan Wessel. And Reinhard Menath fill the breach: “Large parts of the population still have a lot of trust in go-kart driving, which is our basis.”

The professionalism of not only go-kart operators, but also of go-kart dealers is steadily growing. Some of the kart dealers are still so-called boot dealers (selling of parts from autos or trailers), who only do business on weekends, and there are also some “heave-ho” characters amongst the track operators who try to conjure a successful track out of nothing, in a hurry. However, according to Menath, the industry is on its way to improvement.

The manager of the Association of Go-Kart Track Operators believes that there will be only approximately 200 indoor go-kart tracks left in Germany by the end of 1999 which will share the cake amongst themselves.
 

Article Courtesy of: Amusement Technology & Management -An International Trade Magazine, 2/99 issue, Germany. To contact: e-mail: atm@junfermann.de. Reprinted with permission.
 

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