A LAYMAN'S VIEW OF RACE ECONMICS

Years ago I met the manager of a shoe store who told me things about his business that I had never known before. He ran a relatively small, but elite, shop for ladies in Florida. It was called The French Dootery. He was an excellent salesman and a good manager. Here is a little of his story.

He told me that his profit or loss on a given line of shoes was always tied up in the last 20% of his order. So no matter how well he sold the first 80%, his success or failure still resided in the remaining pairs. This is why it was so important for him to move them quickly. Naturally, if he had to discount any of the 80% he was in trouble; but he could almost give the last few pair away and come out fine. Once he passed his "break even" point, the rest was profit; but everything still depended on what happened to the last 20% of his volume.

I have also learned that every race has it's "break even" point. That is when all of the basic expenses are met. That point can vary a great deal, depending on the quality of brochures and shirts, plus the involvement of sponsors. This is why some smaller races are actually more profitable than larger ones. The length of a race can also have a bearing, because of the need for traffic control, etc. (This one item for a recent 5K on city streets cost almost $3000.) The amount of volunteer help is also crucial.

I do not hesitate to tell people that I am opposed to gambling (which is usually based on getting something for nothing), yet farmers (my background) are in one sense some of the greatest gamblers in the world. Race directors are probably a close second; but like farmers they are not trying to take advantage of others. They are simply gambling on things and circumstances over which they have no real control. Think, for example, what a chance they are taking by establishing a race date months in advance (when we can't really trust a weather report three days ahead of time). But once their date is set, they are committed regardless. Expenditures on brochures, shirts and advertising cannot be called back.

This produces some strange circumstances. An out-of-town director told me recently of having to "eat" 300 shirts (quality, long-sleeved shirts which cost him about $7 each wholesale) when bad weather cut his expected attendance in half. During severe winter weather, one race had about one fourth it's expected number; and others were seriously handicapped. What would you do with $2100 worth of shirts, dated as to almost totally lose their value after race day? What is the attitude of a sponsor who had grand hopes of raising money for a choice charity; but doesn't break even their first year? How discouraging is it for a race director when severe weather curbs his attendance? Even if the sponsors take the loss, how hard will it be for him to sell them on a return engagement? Is it any wonder that we quietly lose races year after year. They simply disappear; and, thankfully, some new ones fill their places. We probably owe more to race directors and sponsors, under adverse conditions, than we realize.

Weather, bad circumstances and conflict of events have a definite impact on the success of races. They also affect our overall running program. The Cross Country Club of Dallas relies on one race (the half marathon) for well over half of their yearly budget. The Fort Worth Runners Club is heavily dependent on their Labor Day race. If either of these races fall short, the yearly program of the club involved is in jeopardy.

The enlightment that has struck me recently, however, is that the success or failure of most races DOES NOT DEPEND UPON COMMITTED RUNNERS! Think with me now. Most committed runners will preregister. There are exceptions, of course, due to recovery from injury or uncertain plans that they can't completely control. But most committed runners are going to run regardless of weather or adverse conditions, so it is only natural for them to register early. Yet as many as 25% or more may wait for race day. Eleven hundred did that last year at Cowtown. Now remember my shoe salesman. The preregistered may cover expenses. They may bring a race to the break even point; but profit or loss often depends on race day registration. And who are they? THE UNCOMMITTED! Those who on a whim may go or not go. Do you see now what a chance directors and sponsors are taking on us? The next time you get a chance, at least say "Thank You!".