Tracks: Do you know your Fan Cost Index?

And, are you marketing it?

As a numbers geek through and through, I love looking at costs, return on investment, growth…really any number I can get my hands on. One of my favorite geeky reports to look at each year is the Team Marketing Report’s Fan Cost Index for professional sports.

Why? It points out a critical disparity in the cost difference between most dirt race tracks and professional sports venues.

And guess what that creates? You guessed it: An enormous marketing opportunity for local race tracks, events and series’. 

The TMR “Fan Cost Index” represents the cost for a family of four to attend an MLB or NFL game. The TMR staff compiles costs for all venues in that sport using the price of four average weighted non-premium tickets combined with four sodas, four hot dogs, two beers and two souvenir caps, plus a parking spot.

In 2018, the NFL’s average Fan Cost Index increased .7 percent to $536.04 for a family of four. In the MLB, it rose 2.4% to $230.64.

In the NFL, the ticket cost is the bulk of that $536.04. FYI: the average beer price is $8.17, soft drinks are $4.71 and a hot dog is $5.23. They’re squeezing every last dime out of those ticket holders because they’re likely only attending one game per year and willing to splurge on that experience.

In the MLB, the average ticket price is much lower at about one third of what the NFL charges. Beer is also $5.98, soft drinks are $4.65 and a hot dog is $5.01, all on average across the 32 MLB ballparks.

Think about that and compare it to a local race track. Let’s say you’re looking at a ticket price of $14 with kids under 11 free – that’s$28 in ticket costs. Let’s say $12 in 4 hot dogs, $8 in 2 beers, $8 in 4 sodas, $40 in 2 hats and free parking. You’re totaling out in $96 for one splurge-worthy night at the races.

Since race tracks depend on fans coming every single week, let’s talk about the average cost of repeat attendance.

You’re likely not going to buy apparel every night, so let’s say your average night for a family that attends multiple times is $56/family. Not bad, right?

From that math, it’s easy to make the case for how much cheaper it is to attend an entire weekly racing schedule than even one NFL game, as attending a race costs 10% of what an NFL game costs to attend.

Here are some thoughts on this info:

• When you have more games or events, the prices have to be lower to entice customers to attend more than once.
• For repeat attendance, they also have to be wowed by the experience once they get there. (Even better if they’re sharing that experience with others!)
• While we’re on the subject of repeat attendance, they must be invested in the entertainment itself. Whether that’s emotionally or financially. (Think sports aren’t emotional? Insult someone’s favorite NFL team and just wait.)

The first two points are pretty self-explanatory but I could write a short novel on the third.

Don’t worry: if I do, it won’t be today.

But here is something to think about: Yes, the example Fan Cost Index of a local race track might be 10% of what an NFL game costs to attend but those same NFL fans get to watch all of the others game from the comfort of their home FOR FREE the rest of the year. Ponder that.

If you only heard about your local NFL team on social media, on a podcast or on a live broadcast that you had to pay for each year, how interested would you be in the NFL? Would you still be willing to pay $536.04 to attend one game? Would you even pay $96 to watch one game?

There are so many points that can be made out of this thought alone about live streaming, content marketing and, say, back-gate driver tracks that we could be here for days. Also: don’t worry. Not today, friend.

In fact: you’re excused to think about how you can use this information to your advantage in your marketing.

xo.

Kristin

P.S. This doesn’t just apply to tracks, series and event promoters. It’s to the racers’ advantage to bring more fans to the tracks…or even the sport in general…to be able to serve marketing partners or the fans themselves with products or services.