Cape Epic turn over R50 million

[dillon]

Interesting interview

 

http://www.moneyweb.co.za/moneyweb-upper-echelon/kevin-vermaak--race-founder-cape-epic

[Guest Latent Blue]

R24500 pp = R 49 000 per team

600 teams I think

 

Entries =R 29 000 000

[dillon]

read the article Kevin pegs it at R50 million

[dillon]

KEVIN VERMAAK: Well, first of all if you look in the South African market one would think…well, the turnover now for the race is about R50m, it’s not a small sports event by South Africa standards I think. When we started the biggest races on the calendar were the mass participation road races like the Argus and the 94.7. We’re five times the size now in terms of budget. So in the South African calendar certainly we’re a big race but in terms of comparing us to global sports events and iconic sports events with a proud long history we’re a little pin prick that’s so small. So ja, I think that there’s certainly a lot of fresh air in front of us, there’s a lot more growth for the Absa Cape Epic if you compare it to international iconic events that have transcended the sport, the category, in which they exist. So I wouldn’t want to get complacent and think that we’ve achieved something great in ten years, we’re actually very small and very young. So ja, for me personally I feel that I’ve still got a lot of value to add to the event and I still get excited by it, every year I see it I get new ideas of how we can grow it. I’d hate for the Epic not to achieve what it could achieve if I were to step out too early. So that’s my take on it, I’d love to see it grow to its full potential and I feel I’ve got a lot to add to be able to achieve that. It doesn’t mean though that we might not partner with international agencies or sports agencies that can take it to the next…or work with us to take it to a much higher level than what it is at the moment.

[Guest Latent Blue]

read the article Kevin pegs it at R50 million

 

For the enrries!? Wow!

 

Its so long... did read it!

 

But a freind and I was just chatting yesterday about the robbery the epic is!

 

I cant imagine it cost that much to host the event...and then theres sponsors also.

 

Highway robbery if you ask me!

 

(If you would be so kind could you quote a bit out of the article.... I scanned qyickly but ita alot of reading)

[Brogue]

Included in those numbers is two cans of coke and a burger, which Wannabe and I purchased at the final stage in Stellenbosch.

 

PROUD SUPPORTERS OF THE CAPE EPIC

Edited June 27, 2013 by Brogue

[Andrew Steer]

Well done to Kevin Vermaak and his crew on an incredibly successful business venture

Wish I had thought of it first!

[Thorn199]

"

Now we’ve got to a point where our race is certainly one of the most aspirant events around the world and it’s very desirable and it’s allowed us to increase the entry fee. I think in the last four years now it’s over 200% that we’ve racked up the entry fee.

 

...

 

certainly in South Africa we’re quite an expensive event compared to other mountain bike stage races, which are now on the calendar as well. But the reality is that we’re certainly delivering value and it’s definitely not overpriced because the race sold out this year for next year’s event, so 12 months in advance, the race sold out in 34 seconds, everyone pays their money within 24 hours of entering and it’s R46 000 per entry to ride the race. So there is huge demand for it and I can say it’s getting more and more

 

...

 

to be honest the actual cost of the entry is insignificant to their cost of taking part in the race and actually we can charge whatever we want for probably about 20% of the field. The price is absolutely irrelevant at the moment; it’s so desirable that they want to be doing to race.

 

"

[dillon]

well, I think we created a market in South Africa that was the first thing because mountain bike stage races didn’t exist when we launched, now there are over 50 on the calendar bur certainly be created the market in South Africa. Now we’ve got to a point where our race is certainly one of the most aspirant events around the world and it’s very desirable and it’s allowed us to increase the entry fee. I think in the last four years now it’s over 200% that we’ve racked up the entry fee. Ja, so since the day we were in a position to do that the business started making a lot more sense and it certainly one might think…well, certainly in South Africa we’re quite an expensive event compared to other mountain bike stage races, which are now on the calendar as well. But the reality is that we’re certainly delivering value and it’s definitely not overpriced because the race sold out this year for next year’s event, so 12 months in advance, the race sold out in 34 seconds, everyone pays their money within 24 hours of entering and it’s R46 000 per entry to ride the race. So there is huge demand for it and I can say it’s getting more and more, the type of people from around the world that I’m seeing entering the race or aspiring to do the race to be honest the actual cost of the entry is insignificant to their cost of taking part in the race and actually we can charge whatever we want for probably about 20% of the field. The price is absolutely irrelevant at the moment; it’s so desirable that they want to be doing to race.

[dillon]

thorn beat me to it!

 

Great business Kevin has

[dracs]

"I think in the last four years now it’s over 200% that we’ve racked up the entry fee"

"The price is absolutely irrelevant at the moment; it’s so desirable that they want to be doing to race."

 

wow - might be true but not so sure its great PR!~

Edited June 27, 2013 by dracs

[Wannabe]

Included in those numbers is two cans of coke and a burger, which Wannabe and I purchased at the final stage in Stellenbosch.

 

PROUD SUPPORTERS OF THE CAPE EPIC

 

Hell yeah, we did our bit for the good of the cause!!

[Shebeen]

I think he'd love to do it more like the tour de france...pro trade teams only. but that's a long way off, until then it's amateur joe footing the bill.

[Guest Jacques Viljoen]

Great for MTB in South Africa

[Azonic]

Great for MTB in South Africa

 

How?

 

Its a multi day stage race for guys with stupid money that are willing to pay for bragging rights.

 

I'd rather put that money down on my bond.

[Ed-Zulu]

Fact is the Cape Epic was for the first 6 years a loss making business (yes, yes, accounting terms), read the article a while back also an interview in a business mag.

 

However, what he has achieved for South Africa on the global stage is massive!

 

Good for him, good for us, good for RSA in the long run!