Pirelli contingency

Started by Eric Kelcher, February 14, 2008, 11:26:09 AM

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clutch

Quote from: CounterSteerer on February 22, 2008, 09:03:04 AM
Pirellis 2008 CCS contingency program is very disappointing. They make a great tire but why not reward the people winning on your tires? Last year if you won 4 races you would come home with $700, this year with the new program $280. That is not enough to cover 1 set of tires! How can they intice new riders to use their product with such poor incentives. I have always been a brand loyal guy and support those who support me and the sport, but this feels more like a kick in the eye than a reward for winning. I will continue to run Pirellis because I believe in their product and my obligations and hope Pirelli will review this new contingency program and determine to implement a new plan for 2009 one that will at least pay for a set of tires after a weekend of winning races.
Just out of curiosity what tire manufacture pays the best for the top three spots?

Bridgestone.  Their slicks are supposed to be great.  They pay $200 a win in all expert classes and $150 a win in the SOLO's...that is with WERA.  Their CCS contingency is really good as well.

2old2fat2slow

Thanks for the link TEAM_SERPENT! Realistically, it looks like more of an investment on my part than the potential payoff will be ,considering this is my son's rookie year. Just got the leathers back from the shop so no patch! They aren't getting free advertisement from me on the bike so I think we will burn up the first 6 sets of pirellis and possibly switch to someone who pays better.
Thanks to:Lithium Motorsports, Vondari Racing, Continental Tires of North America, Absolute Cycle, RaceConti,Next Level Motorsports, Mize Mobile, Vortex, Woodcraft

theQman23

Countersteerer, check the contingency at http://www.bibmen.com/2008CONTINGENCY.html
As for the reasons for the reduction its very simple. Sales vs capital vs budget.  Pirelli and Dunlop had betweent the two of them about 70-80% of the market in the north, and they had at least half or more in the south.  Over the past four years, Michelin and Bridgestone have stepped up big time, and now Pirelli has less sales.  They had a lot of riders getting free product, and they tried to continue to give the same level of contingency and free product out that they always did, but the sales were diminishing so they started to see a problem in the old bottom line department.  They didn't want to cut back the allotments to their loyal heavy hitters, so they cut back on contingencies.  Next year, they may put contingency back, but then they'll stop giving free product.  Some way or another, they must try to recover from the lost revenue, that came from a reduction in market share.  Meanwhile, Bridgestone and Michelin continue to dominate MotoGP, and they continue to sell more and more tires at the club level in the U.S. and they continue to use some of that increased revenue towards paying out more contingency.  Tire companies don't get to do what they want, they have to do what pays financially, since they are "companies" and if sales of one brand goes downhill, and sales of another is on the rise, then the contingencies and market support will have to follow suit.  This is why Michelin is paying 400 and 500$ in some of the fast guy classes for a SINGLE WIN and Bridgestone is continuing to pay like every single class there is I think.  It isn't that Pirelli doesn't want to pay better, they do.  I promise you they do.  They want to give you as much as they can.  But unfortunately for them, with the market shifting as it is, they just can't give out more than what they profit. 
Just .02 cents from a tire guy.
-Quentin  of Mize Mobile

Team_Serpent

Quote from: CounterSteerer on February 22, 2008, 09:03:04 AM
Pirellis 2008 CCS contingency program is very disappointing. They make a great tire but why not reward the people winning on your tires? Last year if you won 4 races you would come home with $700, this year with the new program $280. That is not enough to cover 1 set of tires! How can they intice new riders to use their product with such poor incentives. I have always been a brand loyal guy and support those who support me and the sport, but this feels more like a kick in the eye than a reward for winning. I will continue to run Pirellis because I believe in their product and my obligations and hope Pirelli will review this new contingency program and determine to implement a new plan for 2009 one that will at least pay for a set of tires after a weekend of winning races.
Just out of curiosity what tire manufacture pays the best for the top three spots?

I believe you are quoting novice payouts.  Compare the programs for each manufacture and you will probably find bridgestone paying the best for novices this year (depending on the classes you run and where you finish).  Last year it was probably Pirelli and that inticed new riders.  Like I said before, these programs and payouts change every year.  Some years are better than others but I think you'll see that they are all within a few dollars.

Team_Serpent

Quote from: 2old2fat2slow on February 23, 2008, 12:36:53 AM
Thanks for the link TEAM_SERPENT! Realistically, it looks like more of an investment on my part than the potential payoff will be ,considering this is my son's rookie year. Just got the leathers back from the shop so no patch! They aren't getting free advertisement from me on the bike so I think we will burn up the first 6 sets of pirellis and possibly switch to someone who pays better.

Let's face it, your tire bill is going to be a large portion of your racing budget with or without contingency.  It's your money, spend however you what and jump around to whatever product you want.  Won't make any difference to me, I'd prefer to see you on Pirellis but ultimately you are going to make your own decision.

I was only trying to share with the board out how important I felt it was to develop loyal relationships with the companies and people you will be working with everytime you go to a race.  If you don't see that as being important then do whatever you want.

Team_Serpent

Quote from: theQman23 on February 23, 2008, 02:54:55 PM
Countersteerer, check the contingency at http://www.bibmen.com/2008CONTINGENCY.html
As for the reasons for the reduction its very simple. Sales vs capital vs budget.  Pirelli and Dunlop had betweent the two of them about 70-80% of the market in the north, and they had at least half or more in the south.  Over the past four years, Michelin and Bridgestone have stepped up big time, and now Pirelli has less sales.  They had a lot of riders getting free product, and they tried to continue to give the same level of contingency and free product out that they always did, but the sales were diminishing so they started to see a problem in the old bottom line department.  They didn't want to cut back the allotments to their loyal heavy hitters, so they cut back on contingencies.  Next year, they may put contingency back, but then they'll stop giving free product.  Some way or another, they must try to recover from the lost revenue, that came from a reduction in market share.  Meanwhile, Bridgestone and Michelin continue to dominate MotoGP, and they continue to sell more and more tires at the club level in the U.S. and they continue to use some of that increased revenue towards paying out more contingency.  Tire companies don't get to do what they want, they have to do what pays financially, since they are "companies" and if sales of one brand goes downhill, and sales of another is on the rise, then the contingencies and market support will have to follow suit.  This is why Michelin is paying 400 and 500$ in some of the fast guy classes for a SINGLE WIN and Bridgestone is continuing to pay like every single class there is I think.  It isn't that Pirelli doesn't want to pay better, they do.  I promise you they do.  They want to give you as much as they can.  But unfortunately for them, with the market shifting as it is, they just can't give out more than what they profit. 
Just .02 cents from a tire guy.
-Quentin  of Mize Mobile

I'm not sure I agree with the market share quotes entirely but thank you for typing all that and trying to help everyone understand one of the main reasons why these programs change each year.

104fahl


Garywc

hope this answers your question 104fahl in another post in this thread  on page 2 Eric said they have patches and stickers at tech if  they aren't available at tech you don't have to have them for that event
plus the tire vendors might have them
CCS/ASRA #77
AMA #776
http://www.eastcoastsupertwins.com
Monmouth Cycles,Woodcraft, bel-ray,AXO

104fahl


ekraft84

I agree with everything Jason has said.  Brand loyalty is a big part of the picture.  At least for us it is.  We've developed such a good relationship with Pirelli, it's much more than just about the contingency.  It pays off in a number of other ways.

If you're switching brands every year for contingency reasons, IMO, I'm not sure that's the best road to travel ..

Eddie Kraft - #48
Witchkraft Racing
Honda East Racing - Honda, Yamaha, Suzuki, Kawasaki, Aprilia