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$495 is a lot of money, for sure. I can see me doing one day, just to have the experience, but...
for comparison:
two day weekend at ORP ( which is my personal favorite, not that I spend a lot of days on track each year) : US$395 = cdn$510
Keigwins / Thunderhill / late April ( which I plan to do) usd170 per day ( less 10% = usd153 early bird) per day = approx cdn $225 / $205 per day.
Keigwins / Laguna Seca /end April ( also on the agenda ) usd 270 ( early bird usd 243) / per day = approx cdn 360 / 325
I did a day at Portland a couple years back, which was roughly $215 canadian.
cost at the Ridge varies depending on the group you book with, but Pacific Supersport Riders are showing usd215 day / $385 weekend for 2017 = approx cdn 285 day / $515 weekend.

or for 500 bucks I could tour for 2000 kms...

note, btw, I don't resent this cost at Area 27. it is what it is, and those involved have dumped a HUGE amount of time, energy , and money into this facility. i wish them every success, and I'm really happy there's room in their plans for motorcyclists too...
 

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I have 2 friends that live in Austin .
Track days at cota is under $200, and they say it's expensive.

Maybe that $500/day includes paying off that track membership fee investment
 

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I have 2 friends that live in Austin .
Track days at cota is under $200, and they say it's expensive.

Maybe that $500/day includes paying off that track membership fee investment
It's simple math to do:

$500 x 30 riders per day = $15000 for single day -$3000 that would go to Area27 = $12000
X2 as there are 2 days scheduled for each set = $24000
X 4 sets of date = $96000

Corporate membership is $150000, so 2/3 to paying that off in one year. Other cost is yearly membership of $3K
Would be nice to see price drop to something friendlier once the corp membership is paid off, but if there is enough interest in this price point, then I can't see the price go down. I am guessing there will be some riders from US as well. Crappy $CDN makes it more affordable for them.
 

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there's a couple ways to get million bucks...

ask a million people for a buck... or ask some poor buck for a million.


a 4.8km track can hold more than 10 bikes at a time.
 

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It's simple math to do:

$500 x 30 riders per day = $15000 for single day -$3000 that would go to Area27 = $12000
X2 as there are 2 days scheduled for each set = $24000
X 4 sets of date = $96000
Try a MINIMUM of 30 riders per SESSION (2-Fast at The Ridge goes to 40 riders/session on a track that's 20% shorter) so 90 riders per day. $500/rider X 90 = $45,000/day income - $9,000 for Area 27 = $36,000/day X 8 days = $288,000 profit before expenses.
 

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Try a MINIMUM of 30 riders per SESSION (2-Fast at The Ridge goes to 40 riders/session on a track that's 20% shorter) so 90 riders per day. $500/rider X 90 = $45,000/day income - $9,000 for Area 27 = $36,000/day X 8 days = $288,000 profit before expenses.

I think you mean revenue.
 

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Try a MINIMUM of 30 riders per SESSION (2-Fast at The Ridge goes to 40 riders/session on a track that's 20% shorter) so 90 riders per day. $500/rider X 90 = $45,000/day income - $9,000 for Area 27 = $36,000/day X 8 days = $288,000 profit before expenses.
Misread that. It is 30 riders per group, so yes, 90 total. Holly sheep shit, that is a nice profit after you pay $150,000 for the membership and few other expenses. Next year, it is even nicer profit, as only expense is $3k-$4.5k yearly fee.

Unless this cost goes way down, and is in line with few other tracks, I will just be a spectator. Too bad, as I was looking forward to trying it out perhaps. Oh well.
 

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$500 for a weekend would make sense. $500 for a day means its a one time thing for most of us.

Don't know if I'll partake. I live close by. I would have to buy more gear for starters. It's hard to justify $1000 for a day's fun.

Nice to see the track available to bikes though. I know the original vision was sports cars and the rich and famous.
 

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I doubt they're in this to make insane amount of profit. We dont know the other costs associated to put together a track day (ambulance, insurance, etc.). I think they are trying to keep the image of the track as being a premium track in NA and the price reflects that. Well, I wish all the best to them and I am sure they will not have any problem filling up the spots given the surrounding area is a summer tourist destination in BC.
 

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Not sure about insurance and all that. It would be extra cost. And to be fair, my numbers were off:

One time initiation fee of $90,000 to $115,000 depending on reservation receipt
Yearly membership dues; Phase 1 $7,000 Phase 2 $10,000
Special events may be booked with up to 60 guests attending per event
 

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I know the original vision was sports cars and the rich and famous.
exactly. motorcycling is not a cheap thrill, and while 500 bucks is a chunk of change, some can and will pay for the privilege.
for perspective, you can do a round of golf for $27 at Langara, or you can pay US$475 at Pebble Beach. it's their track, not ours, so 'they' get to charge what the market will bear. if they get little uptake, the price will come down, or the 'use' will disappear. simple, really...
 

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exactly. motorcycling is not a cheap thrill, and while 500 bucks is a chunk of change, some can and will pay for the privilege.
for perspective, you can do a round of golf for $27 at Langara, or you can pay US$475 at Pebble Beach. it's their track, not ours, so 'they' get to charge what the market will bear. if they get little uptake, the price will come down, or the 'use' will disappear. simple, really...
Only thing I will disagree with is that it is their track. OPP bought corp membership and has privilege of using it, and organizing track days. Technically they could only charge $100 per person, as that is how much they have to pay to Area 27 for each non member. Of course that price would be foolish to expect, as that means they are not making any money from this, and that is the whole point.
 

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From speaking with other Track Day Org owners and staff over the past 10 years, I have a ballpark idea of the costs associated with putting on a TD (in the US) but not much of what it would cost here in BC other than the usual variables that wouldn't change whether here or in the US like food/drinks, advertising, transportation, start up costs/website fee's, and sundries like wrist bands or student/instructor vests, etc... Insurance, ambulance fee's, etc... all complete mystery.

$500/person and even with 50 riders/day is gonna cover the debit side of the spreadsheet quite easily.
 

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Revenue and profit before expenses = same thing, no?
Generally revenue is the top line, profit the bottom line, after expenses are calculated.

One is the dollars generated, the other is the take away after expenses, very different.

We can only speak to revenue here as I doubt anyone has the knowledge/insights, and if so, would
share the operating costs, which at this stage of the game could be astronomical with that overhead.

It doesn't really matter either way frankly, the cost is the cost, so all we can do is compare to a similar
offering elsewhere and decide if we want to partake. Clearly they are not trying to attract a whole lotta
riders, but pretty sure we all knew this was going to be the model well before this was built, based on
what info was shared.

I hope that they reconsider in the future or a business case can be made to support a more competitive offering.
 

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so the fact that there is a member ship does it get rid of the usual track cost?

insurance/people shouldn't be any different than any other 200 dollar track day.
 

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Generally revenue is the top line, profit the bottom line, after expenses are calculated.
Just reiterating, I used the phrase "profit before expenses" - not just "profit". In my experience, profit before expenses always equals revenue, however both are totally different than the bottom line.
 

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Just reiterating, I used the phrase "profit before expenses" - not just "profit". In my experience, profit before expenses always equals revenue, however both are totally different than the bottom line.
I usually call that Gross Profit :) (you know......gross sales minus your COGS)

Anyway, enough with the accounting 101 LOL

Correct me if im wrong but being that it is a private track, members can do whatever they want for their alloted days? So it is slightly different than the usual track days outfit down south where they have to rent the track for the weekend
 
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