Monday, November 10, 2008

Racing Should Cut Prices Right Now

At a time when racing raises prices on its customers and is shutting down signals, (customers have a tough time winning in the first place, and finding an ADW to bet all tracks has even gotten worse), the real business world marches on. McDonald's sales are up, big. Why? Value meals and a price break.

Same-store sales rose 5.3 percent in the United States, helped by new menu items, including the Southern Style Chicken sandwich, and continued demand for breakfast items. The company's popular Dollar Menu and its annual Monopoly promotion also drew in value-hungry consumers.

"McDonald's strong October sales show that we are delivering what customers count on from McDonald's -- choice, variety and high-quality food and beverages at affordable prices," Chief Executive Jim Skinner said in a statement.


If racing had a commissioner that man or woman would be wise to take heed in that report. If we could flip a switch, like McDonald's can, and offer an immediate price break, it would give us a chance to weather this storm.

In fact, horseman groups fighting for more cash from tracks and the bettor like we see going on right now, need a new push, in my opinion: Ask for 5% of all ADW revenue to be sunk back into the business through reinvestment. Rebates and R and D will grow this business in times like these, fighting over purse funding and raising prices on bettors will not.

2 comments:

Anonymous said...

I think even if the racetracks could offer a 1.39 double cheeseburger that they would be in better shape.
:)
best regards,

Louis

Anonymous said...

I like Big Macs a little more, but when I go to MacDonalds (maybe once a month), I almost always order two double cheeseburgers.

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