ASG Berge en Dale MTB fee a bit steep

[Chris NewbyFraser]

It would be interesting to see the books from this event. If we can assume that they would generate a conservative income of say, R320000 (the main entry fee is R270 pp for 40km and R150 for 15km!!), then I am of the view that this event will generate an excellent profit. I can only surmise that this event is charging a high fee in order to cover some of the road event costs or the big Tour in the Cape.

 

The ASG event will be based mostly on the generous trails built by The Hobby Park (I know the trails are good, I ride these trails each weekend) so there should be little expense in route preparation. I am sure Hobby Park will charge a per person fee,perhaps about R30pp; day users pay R50 at present. Add in the cost of toilet hire, medical support, organisers fees and field staff costs and insurances, there will still be a healthy wad of Buffalo's at the end of the day.

 

Why?

[MuddyMike]

It would be interesting to see the books from this event. If we can assume that they would generate a conservative income of say, R320000 (the main entry fee is R270 pp for 40km and R150 for 15km!!), then I am of the view that this event will generate an excellent profit. I can only surmise that this event is charging a high fee in order to cover some of the road event costs or the big Tour in the Cape.

 

The ASG event will be based mostly on the generous trails built by The Hobby Park (I know the trails are good, I ride these trails each weekend) so there should be little expense in route preparation. I am sure Hobby Park will charge a per person fee,perhaps about R30pp; day users pay R50 at present. Add in the cost of toilet hire, medical support, organisers fees and field staff costs and insurances, there will still be a healthy wad of Buffalo's at the end of the day.

 

Why?

 

Because events are a business not a charity. Let the organisers make as much as they want to. The simple value equation of entry cost vs the event experience will determine the success or failure of any event.

[HairyLegs]

And the road race is R390......

[Cyclewizz]

Because it's ASG

[Escapee..]

Dont enter if you feel its too much

[Skubarra]

Don't know this event but I do know hosting events are bloody expensive, even with that type of entry fee they are unlikely to make a profit unless they have good sponsors in place.

 

You would be surprised to see how many seemingly expensive events runs at a loss or only turn small profits.

 

As other said, this is business not charity, if it is not worth your money only enter value for money events- not much to be gained by complaining on thehub.

[Patchelicious]

Don't know this event but I do know hosting events are bloody expensive, even with that type of entry fee they are unlikely to make a profit unless they have good sponsors in place.

 

You would be surprised to see how many seemingly expensive events runs at a loss or only turn small profits.

 

As other said, this is business not charity, if it is not worth your money only enter value for money events- not much to be gained by complaining on thehub.

It makes you wonder how badly their businesses are stitched together.

[greatwhite]

It makes you wonder how badly their businesses are stitched together.

Agreed, in the case of some event holder. Having said that, ASG arrange quite a number of events a year and wouldn't still be going of they weren't turning a profit. My guess is in ASGs case is they do fairly well. They market reasonably well and have a good feel for just how hard they can squeeze people on race entries to maximize profit. The OP and this thread being a case in point - some feel it is too much, but they will probably have enough entries to make a profit.

[Patchelicious]

Agreed, in the case of some event holder. Having said that, ASG arrange quite a number of events a year and wouldn't still be going of they weren't turning a profit. My guess is in ASGs case is they do fairly well. They market reasonably well and have a good feel for just how hard they can squeeze people on race entries to maximize profit. The OP and this thread being a case in point - some feel it is too much, but they will probably have enough entries to make a profit.

On face value one would think so, but many larger companies, which ASG is, they will often have loss leads for the benefit of the group.

[Chris NewbyFraser]

Thanks guys. The responses about not entering/a business profit are all valid. My view is that, as a consumer, I must speak up when I feel that a product I want to buy seems to be over-priced in relation to its value (to me). In this instance, I feel that the event is too pricey for one that is based on existing trails, in an enclosed, tight environment. Chris

[greatwhite]

On face value one would think so, but many larger companies, which ASG is, they will often have loss leads for the benefit of the group.

If be interested to hear how you apply a loss lead to race event organization that makes any business sense?

 

I can only see it making sense from a point of view that having more events and therefore more turnover helps deal with fixed costs (rent, salaries etc).

[greatwhite]

Thanks guys. The responses about not entering/a business profit are all valid. My view is that, as a consumer, I must speak up when I feel that a product I want to buy seems to be over-priced in relation to its value (to me). In this instance, I feel that the event is too pricey for one that is based on existing trails, in an enclosed, tight environment. Chris

I agree with you mate. I feel there are many events out there that are over priced - I don't see value, so I don't participate. The ones that slay me are some of the multi day events, most notably the cape epic - R67900 for 2017. However, as long as enough people keep on paying what event organizers charge, event organizers will keep in charging it.

[Patchelicious]

If be interested to hear how you apply a loss lead to race event organization that makes any business sense?

 

I can only see it making sense from a point of view that having more events and therefore more turnover helps deal with fixed costs (rent, salaries etc).

If you see the events company itself as the loss lead, it can make sense.

 

Eg: If you want quick access to more consumers for your more traditional and profitable businesses (in this case their product distribution Rudy, High5, Pino, Sidi, Sicon etc) you can get this via events.

 

All of a sudden you have hundreds if not thousands of extra people going via your online portals every month registering for races, where you can position your other products/services.

 

You also increase your leads database substantially with the information you can collect for people registering for races.

 

So the trick would be is to price your events high enough to keep traffic as high as possible, without taking too big of a knock on the events itself.

[GemmerKat]

I agree with you mate. I feel there are many events out there that are over priced - I don't see value, so I don't participate. The ones that slay me are some of the multi day events, most notably the cape epic - R67900 for 2017. However, as long as enough people keep on paying what event organizers charge, event organizers will keep in charging it.

 

I totally agree with you not to support something when you feel it is over priced. 

[BigDL]

So, if you go to the Spar, and the sterie stumpie is overpriced (you can make nesquik at home, the checkers down the road is much cheaper etc etc), do you feel a duty to voice your opinions publicly about this, or do you just choose an alternative option or none at all. If you don't like it, don't buy it, but why try and persuade everyone else that spar's sterie stumpie is too expensive.

[EmptyB]

Just be glad its not this weekend....you would need a canoe!

 

PS. I think its expensive for 40km fwiw...