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Helping the raceways


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#1 JK Products

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Posted 25 August 2017 - 10:15 AM

I hope this helps explain how these changes will help raceways.

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Tim Homola
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#2 JK Products

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Posted 25 August 2017 - 10:31 AM

Misconception #2
 
“JK is doing this just to increase their profits?”
 
We used to offer distributors a 55% discount. We charged shipping.
 
Now we are offering the Raceways a 45% discount, free shipping, 15% commission, etc. Did we just pocket the missing 10%? Let’s have a look.
 
- 45% discount to Raceways
- 3% credit card fee
- 5+% for shipping (could be higher depending upon order size)
- 3% for smaller, more frequent orders, more boxes, etc.
------
- 56% discount
 
We expect to make about the same profit if not less than we did before, but the Raceway will make significantly more if racers buy from Raceways!
 
We are doing this primarily to save Raceways because without Raceways, JK Products® goes out of business. So yes, we are doing it to protect the industry, and to protect ourselves at the same time.


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#3 gotboostedvr6

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Posted 25 August 2017 - 03:23 PM

I for one am in favor of this, Tim!

Bravo!


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#4 tonyp

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Posted 25 August 2017 - 03:54 PM

Well thought-out and explained.


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#5 Mark Crowley

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Posted 25 August 2017 - 04:12 PM

I applaud JK's effort to help the tracks. I am just a racer that is lucky to have a track within 15 minutes of where I live. I purchase from my local track exclusively because I want the track to stay 15 minutes from my house.

 

Mark


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#6 Samiam

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Posted 25 August 2017 - 04:38 PM

Tim has not mentioned all the added expense of dealing with hundreds of tracks instead of a handful of distributors. In manpower and shipping costs. This expense will be subtracted from his so-called windfall of hijacked profits. To accuse him of being greedy is very shortsighted, besides being rude.

 

Some have stated they don't see or know of distributors selling to unqualified resellers. That does not mean it does not happen. It most certainly does happen. And it has been going on for years. It takes a lot more than "Secret Shopper" tactics to uncover the practice.

 

I have a suggestion as far as direct sales to racers/slotters and clubs. Use the same system Parma has for online sales. You order from their website but the order goes out to participating dealers in the buyer's area. The dealer ships the order and makes the full mark-up. Of course they would need to stock some serious inventory. And commit to a full-time online sales dept. Tim could ship the items they don't stock and still kick back the 15%. Parma uses a service called Shopatron, Inc.


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#7 Cheater

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Posted 25 August 2017 - 04:51 PM

Sam,
 
Shopatron no longer exists under that name. The company is now called Kibo after a merger.

Shopatron And MarketLive Merge And Become Kibo

 

I am unsure whether Parma is still using this arrangement. Perhaps Steve Koepp will chime in to let us know.


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Never forget that first place goes to the racer with the MOST laps, not the racer with the FASTEST lap


#8 Dominator

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Posted 25 August 2017 - 08:16 PM

Well done, Tim.


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#9 havlicek

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Posted 26 August 2017 - 11:31 AM

We are doing this primarily to save Raceways because without Raceways, JK Products® goes out of business. So yes, we are doing it to protect the industry, and to protect ourselves at the same time.

 
That is at once both one of the more honest and positive statements I've seen from either a manufacturer or a retailer in a long time! Refreshing to say the least!


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#10 Eddie Fleming

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Posted 26 August 2017 - 11:56 AM

Just created an account on the JK site. And there are no raceways listed in Georgia.

 

How many raceways do you have registered, Tim? 


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#11 dalek

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Posted 26 August 2017 - 01:37 PM

Just created an account on the JK site. And there are no raceways listed in Georgia.
 
How many raceways do you have registered, Tim?

 
I see that you directed your question to Tim, but FWIW when I clicked on the link to Registered Raceways at the bottom of JK home page, it showed 34 raceways currently registered.
 
It only shows the raceway name – no other info.
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#12 Cheater

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Posted 26 August 2017 - 02:02 PM

FWIW, as I understand it, raceways that are not registered will not receive the 15% commission since those buying direct cannot designate them as their 'home' raceways.

 

Whether you agree with JK's new policy or not, seems pretty shortsighted to me for a raceway not to register on JK's website. Your call...


Gregory Wells

Never forget that first place goes to the racer with the MOST laps, not the racer with the FASTEST lap


#13 Don Weaver

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Posted 26 August 2017 - 03:31 PM

Tim,

 

I've looked for but haven't found:

 

On orders by individuals what is the freight policy?

 

On club track orders what is the discount and freight policy?

 

Thanks...

 

Don Weaver


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#14 JK Products

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Posted 26 August 2017 - 04:41 PM

Hi Don,

 

Free shipping with a $75 order, just like most non-raceways that I'm trying to compete with... and still give 15% commission to Raceways.

 

Clubs get a 20% discount and same free shipping with $15 order like Raceways (I think).


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#15 Pablo

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Posted 31 August 2017 - 09:00 PM

I went to sign up as a racer and at the point it wants to know what state I race in, I clicked on "Alabama".

Then it wants me to select a raceway, so I click on the drop down list.

No raceways appear. So I tried "Mississippi". Nothing there either.

What am I doing wrong, or what should I do?

 

No emergency, I know this is new, and I'm onboard with the change. But at some point I'll need to order JK products. Please advise. 

 

Thanks,

Pablo


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#16 Don Weaver

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Posted 01 September 2017 - 06:15 AM

Pablo,

 

Your raceway has to register then it will show up on the list.

 

Don


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#17 JK Products

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Posted 01 September 2017 - 07:10 AM

Hi Pablo, Don is correct. #1. The raceways have to register. #2, the racer has to pick a state that has a registered raceway in it. 

 

If you need to order, you will have to pick another raceway for the time being. If your preferred raceway registers later, you can email me and I will change the raceway for you so they will get the commission. 


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#18 tonyp

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Posted 01 September 2017 - 07:26 AM

It is going to be an uphill battle to get shops to register. Most don't seem to be online and I am sure the distributors will be pissed and when a shop goes to order JK they will probably say JK is out of business. It has happened before.


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#19 JK Products

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Posted 01 September 2017 - 07:47 AM

I hope the racers will explain to their raceways so they can understand that we are trying to help them. We need the support of the racers and raceways to make this work. 


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#20 Pablo

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Posted 01 September 2017 - 09:05 AM

People who use the term "local raceway" automatically assume everybody has one.

Anything stopping me from just selecting a quality raceway in another state I know and trust?


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#21 JK Products

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Posted 01 September 2017 - 09:10 AM

None at all Pablo, the racer's raceway choice is kept confidential. You can pick any raceway you prefer, in any state, but you do have to pick one in order to make a purchase to guarantee the raceway you've chosen gets their 15% commission. 


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#22 Pablo

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Posted 01 September 2017 - 09:25 AM

Thanks, that solves my problem.  :good:


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#23 John Streisguth

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Posted 01 September 2017 - 09:46 AM

It is going to be an uphill battle to get shops to register. Most don't seem to be online and I am sure the distributors will be pissed and when a shop goes to order JK they will probably say JK is out of business. It has happened before.

 

How do they place orders, by telephone? Many companies I deal with don't even have a number you can call to place an order, as it takes too much manpower. You order online, or you don't order. 

 

In this day and age, if you're not online, what are you really doing for your business? Damn luddites!   :laugh2:


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#24 Justin A. Porter

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Posted 01 September 2017 - 11:05 AM

I'm genuinely in full agreement with John. The internet and its countless avenues for effectively free self-promotion are not recent developments. Ten years ago perhaps there was an excuse. In a day and age where 64% of Americans are smartphone owners* and as such can within a minute locate your business, directions to your business, independent reviews of your business, and links to several of your related customers there is no excuse for a lack of connectivity.
 
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#25 Phil Hackett

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Posted 01 September 2017 - 11:13 AM

McMaster-Carr has phone order service as well as fax and, horror of horrors, written orders by mail.

 

I cannot think of any business I deal with that will not accept a phone order. For curiosity sakes, could you name one company that won't take a phone order?


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