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BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2

Posted by john vanlandingham 
john vanlandingham
John Vanlandingham
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BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 12:11PM
Its clear that i think 2wd classes Group 2 and Group 5 are the bar none best classes for everybody---even if many are unaware of it and drive other things..
The fact they are Open classes is the key to happiness and the simplicity--only one diff, only one final drive ratio, wide choice of suitable engines or engine combos..

And its no secret that SCCA and its pale shadow Rally America has since the later 1990s been slorping at the cawk of Subaru USA, tripping over themselvbes in finding ways to make SRTUSA happy and winning the "Championship" titles, inventing class after class obviously intended to cater to Subie drivers and only paying token attention to Gp2 and Gp5....

But all that has suddenly changed..

From Corporate HQ comes a new announcement:

http://www.rally-america.com/news/entry/maxxis-international-usa-partners-with-rally-america-national-championship

Quote

Maxxis International-USA Partners with Rally America National Championship
Posted February 04, 2016

Maxxis International-USA partners with Rally America National Championship for 2016 and 2017.

Williston, VT (February 4, 2016) – Rally America, the premier sanctioning body for performance rally competition in the United States, has signed a contingency and spec tire deal with Maxxis for 2016-2017. The deal is expected to dramatically raise Maxxis’ profile in the world of rally racing.
The program will provide a level playing field for National 2WD competitors, for whom the Maxxis Victra R19 will be the new spec tire. Maxxis will continue to offer free shipping to competitors, and winners will have the opportunity to earn monetary prizes within the program administered by Rally America. Competitors in other classes who race on the Maxxis R19 will have opportunities to win products through a contingency program. Through the Honda team, Maxxis will provide a self-service tire-mounting station to National 2WD teams competing in the Rally America National Championship, and to teams participating in the contingency program in all classes.

“We’re both pleased and proud to make this announcement,” said Bill Fogg Sr., owner of Rally America, Inc. “Maxxis International is recognized around the world as a leader in the manufacturing and distribution of competition tires for professionals and enthusiasts. Having this top-level tire manufacturer and its technical assistance available at each of our National Championship events for the next two years is a tremendous step forward for the sport of rally, and it will provide a lot of support for the teams, in addition to being very convenient from their point of view. We’re all very excited about this partnership.”

"After discussing with a large number of our National two wheel drive competitors about this program we moved forward quickly to provide this significant benefit to not only 2WD teams but to all competitors that chose to participate", said Fogg.
- See more at: http://www.rally-america.com/news/entry/maxxis-international-usa-partners-with-rally-america-national-championship#sthash.4eDBKbfY.dpuf


Isn't that GREAT!!!

Sure some nay sayers might point out that the season began already but hey a mere detail.. Other cynical complainers could say REQUIRING all so called "national" entries to use a spec tire in an OPEN class is logically against the idea of an open class, and then there is a small issue of the people who may have a pile of tires they invested in, which they must now choose between entering the "National" portion or throwing away a lot of inventory....and the insignificant problem of a extreme lack of really good sizes available....

But all those things which immediately are obvious problems are mere trifles..
There's going to be contingencies! free money!
Who could argue about free money?

Granted the Max dude Ritchie says he has no idea of what the contingency money will be if you win the BIG RACE after being compelled to buy the tires at nearly the same price as the best tires out there, but that is just quibbling. Look at the BRIGHT SIDE..

I hear theres some heated discussion on the new secret closed discussion facebook page.. It sounds very interesting....Already one rich team has pulled his entry from the "national" side of the 100 Acre woods complaining he has thousands wrapped up in tire inventory already....
Obviously he can't be too serious about winning THE BIG RACE so he can be ignored..
Besides rallyAmerica said they "spoke with all the major 2wd teams".
So there you have it..
Great News for once...

Spec Tires have always worked so well for everybody in other forms of racing..

And Ritcjhie Max-man said he had a lot of inventory he needed to get rid of so the new compulosry tire rule will be helping out a new vendor...Thats' keeping it in the community!

Yay!

Any nay-sayers here?



John Vanlandingham
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 12:40PM
John, I am sure Rally-America is happy they have you as one of their biggest supporters of this new move!
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NoCoast
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 02:00PM
Don't forget that Maxxis doesn't sell a tire that will properly fit a Fiesta apparently.

Maxxis is probably a pretty good tire. Many have liked it so far and they are a well respected Chinese tire brand in the off road and bike communities I have heard.
However, they are only selling direct to consumer which means they are importing and selling them directly.
Can anyone tell me how many companies have been successful in direct sales of rally tires?

We can do quick estimate of the market pretty easy. There are about 400 unique rallyist doing an average of 2.2 events per year so around 880 events entered. I conjecture that 65% of drivers will use tires remaining from previous years or used tires. So 35% will actually buy new tires. Let's just guess that most will buy six, a few might buy eight, ten, or twelve. A small handful will buy more to have a variety of compounds to choose from, most buy what they can use at local event and will make it work elsewhere. So we have 400*0.35 = 140 customers. Let's say an average of 8 tires so a total of 1100 or so tires sold in the USA.
Now let's split that market share between Pirelli, Yokohama, Dmack, and Maxxis, let's just pretend it gets split evenly. Shit, lets round up to 1200 tires so we can let each company sell 300 tires.
Now, let's pretend they get as much as 20% profit on the tires. Maxxis sells at 220 shipped, I know it averages about $20 per tire to ship tires so $200, $40 in profit, that is a total of $12,000 in total profit. That probably doesn't pay for the warehouse space to store the tires much less any marketing budget, contingency, or paying your employees.
Even if we pretend that all 400 people bought tires and Maxxis had 100% of the market that is still only $138k potential profit before expenses.
Yes, I'm ignoring rallycross customers but they buy even fewer tires and many use winter tires and many more like used tires.



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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 05:27PM
12,000$ for a guy that might just have some spare shop space and the ability to get them on a pallet, doesn't sound like a horrible gig. I bet you the guy that sells the tires here does just that. No one said it was a big money making business.

I still find it funny to make their tires spec tire when they don't even have anything for snow.


Quote
NoCoast
Don't forget that Maxxis doesn't sell a tire that will properly fit a Fiesta apparently.

Maxxis is probably a pretty good tire. Many have liked it so far and they are a well respected Chinese tire brand in the off road and bike communities I have heard.
However, they are only selling direct to consumer which means they are importing and selling them directly.
Can anyone tell me how many companies have been successful in direct sales of rally tires?

We can do quick estimate of the market pretty easy. There are about 400 unique rallyist doing an average of 2.2 events per year so around 880 events entered. I conjecture that 65% of drivers will use tires remaining from previous years or used tires. So 35% will actually buy new tires. Let's just guess that most will buy six, a few might buy eight, ten, or twelve. A small handful will buy more to have a variety of compounds to choose from, most buy what they can use at local event and will make it work elsewhere. So we have 400*0.35 = 140 customers. Let's say an average of 8 tires so a total of 1100 or so tires sold in the USA.
Now let's split that market share between Pirelli, Yokohama, Dmack, and Maxxis, let's just pretend it gets split evenly. Shit, lets round up to 1200 tires so we can let each company sell 300 tires.
Now, let's pretend they get as much as 20% profit on the tires. Maxxis sells at 220 shipped, I know it averages about $20 per tire to ship tires so $200, $40 in profit, that is a total of $12,000 in total profit. That probably doesn't pay for the warehouse space to store the tires much less any marketing budget, contingency, or paying your employees.
Even if we pretend that all 400 people bought tires and Maxxis had 100% of the market that is still only $138k potential profit before expenses.
Yes, I'm ignoring rallycross customers but they buy even fewer tires and many use winter tires and many more like used tires.



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Koolaid on specialstage just an FYI
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NoCoast
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 05:40PM
I'm pretty sure I could make $12k a year working a few hours a week as a bartender or bussing tables.
I suppose it depends where you are but around here commercial/industrial space rents for around $25/sf/yr. So let's say you get a 20x40 unit to store the tires you are looking at $20k in rent.
A bare bones liability only insurance policy will cost you another $1k+.
Utilities will probably be in the $750-1000 per year.
Nobody is getting rich selling rally tires. We've been in business for almost two years at this point and there's only been one month that we didn't have to put cash into the business to pay the bills.
My neighborhood in Denver probably has a bigger market for Maxxis mountain bike tires than the entire country has for gravel rally tires. They will be a loss for the Maxxis North America and they will stop importing them within a few years. Perhaps some silly sap will take the risk of importing them to sell to his buddies, tying up tens of thousands for very little return simply for the love of the sport.
Now I gotta leave this thread before I convince myself that Rally.Build isn't worth the effort. smiling smiley



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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 07:44PM
Wierd.
I'd have thought that any 'spec tire' deal would have brought real, tangible benefits to the teams. It doesn't seem like this one does. Unless I see it wrong, it's forcing teams to use the same brand of tire, buy them new, and pay a premium price for them.
Regardless of them being good or not, shouldn't there be an avenue for teams to run used tires or any brand they have faith in.
But, John seems supportive - unless my sarcasm meter isn't working - so maybe I'm missing something.
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 07:49PM
Quote
ALS FTW

But, John seems supportive - unless my sarcasm meter isn't working - so maybe I'm missing something.

Smack the gauge, if that doesn't work make sure the green wire has a good ground.
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john vanlandingham
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 07:51PM
So fascinating commentary from Grant. Thank you..Good insight, and lots of hard statistics..

In other good news an astute Quebecois member of the furiously building a good car brigade called to say how excited he was that Rally America has followed the lead of their older and wiser neighbors to the immediate North..

Unless I heard wrong instead of just the few hardy souls in 2wd classes having the burden choosing what tire to use lifted from their shoulders. for Rally Coupe Quebec the master planners who write the rules for Quebec have though ahead, and after consulting with somebody decided that ALL cars for ALL events now all have the choice of which sort of Pirelli tires to use....
First I saw was finally allowing the use of Pirellis so called "WRC type studded" which strangely Pirelli calls "Sweedish type" but whatever they call it the news was made even more exciting to read that not just that studs or th normal type for rallies would be allowed, but that the use of Pirelli's tires for that class was mandated..

You can imagine how exciting and disappointed that was...

But relief was at hand..

They relented and its in the books Coupe Quebec all tires for all types;snow, asfalto and gravel must be Pirelli..

And in case somebody says "I have Fiesta and they don't even mnake a size for me that's not too fat and heavy---the answer is already in the book< Simply fill out a form and explain what year make model, type of car and why you feel you cannot use the Pirelli tires available (in at least 3 sizes) mail it it at least 6 weeks to somebody and don't forget to include the small, nominal processing fee, a check for $500... And they'll grant permission..Not clear if that is per event..


This is a great way to get rid of the riff raff that so infests the professional atmosphere at The Premier league's rally Championship events..

Merci Trudeau!



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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 07:57PM
Quote
ALS FTW
Wierd.
I'd have thought that any 'spec tire' deal would have brought real, tangible benefits to the teams. It doesn't seem like this one does. Unless I see it wrong, it's forcing teams to use the same brand of tire, buy them new, and pay a premium price for them.
Regardless of them being good or not, shouldn't there be an avenue for teams to run used tires or any brand they have faith in.
But, John seems supportive - unless my sarcasm meter isn't working - so maybe I'm missing something.

You've never gotten the essence of a single thing I have ever written before.
Why start now?

If the guys running in the Premier league can't afford 12 new tires per event, then they simply aren't serious enough.
As he said so many years ago before maxing out his credit card and dropping out for a few years
"if you want to run with the BIG boys, that's the price you have to pay"

(same guy who said a few years later after bankrupting himself "Nobody wants to give me 4 million dollars to run the National series so i quit".)



John Vanlandingham
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Edited 1 time(s). Last edit at 02/08/2016 07:57PM by john vanlandingham.
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 07:59PM
John, I think Quebec also has spec fuel, even for 'pump gas.'
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john vanlandingham
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 08, 2016 10:47PM
Quote
ALS FTW
John, I think Quebec also has spec fuel, even for 'pump gas.'

Well I bet its hard to describe the joy they must feel in having a set supplier..I'm sure its at a special reduced price, maybe even free if somebody read the tax code for the supplier..
Give it away free...book it as advertising.
Win Win..



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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 09, 2016 09:33PM
Maxxis bike tires are total crap, for what its worth
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 14, 2016 09:23PM
Spec tire yay....

Lets see the features and benefits...

Features: Black, round, and sure to suck and cost a wopping $10 less than Pirellis

Benefits: Everybody will be running a shitty tire, so no excuses there, and you're "supporting the sport and in turn "being supported" by people interest in making rally great again... umm sounds like a Trump slogan.

just as an FYI, the prices for the size I run

Maxxis from Demon Tweeks $121.55
Maxxis from Ricky tan RA contingency $220
Pirellis - $230

Well shirley there must be some customs and S&H if you buy from DT, but I still think that paying an extra $99/tire to ricky tan is a but too much.

Maybe people should just order Maxxis R19 from Demon Tweeks instead and see how long this spec tire phenomenon will last.
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john vanlandingham
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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 14, 2016 10:29PM
Quote
Cosworth
Spec tire yay....

Lets see the features and benefits...

Features: Black, round, and sure to suck and cost a wopping $10 less than Pirellis

Benefits: Everybody will be running a shitty tire, so no excuses there, and you're "supporting the sport and in turn "being supported" by people interest in making rally great again... umm sounds like a Trump slogan.

just as an FYI, the prices for the size I run

Maxxis from Demon Tweeks $121.55
Maxxis from Ricky tan RA contingency $220
Pirellis - $230

Well shirley there must be some customs and S&H if you buy from DT, but I still think that paying an extra $99/tire to ricky tan is a but too much.

Maybe people should just order Maxxis R19 from Demon Tweeks instead and see how long this spec tire phenomenon will last.

And you say I am a crusty old grouch...eye rolling smiley

What's the news from the Secret Evan Cline owned discussion Group?thumbs up smiley

Everybody just dropping their shorts and wagging their asses?

I see the poor bastids in Quebec are getting royally fuck en cul with a new rules that says EVERYBODY in ALL classes MUST use Pirtelli tires for snow, gravel and tarmac, and another new rule that they MUST buy ALL gas from some cocksucker selling the shit gas at very nearly double..

Where do these cheap whores passing rules come from..

It should be time for torches and pitchforks....



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Re: BIG NEWS! Rally America annouces Big Sponsorship deal in Group 2
February 14, 2016 10:39PM
I think it was wheeler dealers i saw where they bought some retreads and while visiting the factory i read the label that said "maxxis"
Are there rally tires retreads?



rally gods would turn in their graves if they ever knew Lada's were now part of EU rallying!!!
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