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#40405

Jim Derrig
Participant

But at the top levels, it’s surprising how many drivers are loyal to (and dependent on) the shops.  If the shop says we’re not going here and we’re going there instead, their customers often follow suit

I don’t think we’re getting the point.  My point is that a series started for the purpose of preserving profit margins is being started for a purpose that ultimately does not factor into the decisions of the customer.

I’m loyal to Italian Motors.  I have no idea what their profit margin is or where they make it or even if they make it.  I’m loyal because of the customer service, products, etc.

If my loyalty translates into marketing power, so be it (I think the replies above have confused market power with the point I’m making)  But if shops start a new series purely to preserve profit margins, rather than to provide a better product to the karter (who ultimately is the one with the money), that is not a good recipe for long-term success, as that objective does not form a basis for the karter’s decisions.

Hate to trudge out this over-used analogy, but CART was started for the teams not the fans and look how that turned out.   The objective was all wrong  The teams had loyal fans and corresponding market power and that worked for a while, but ultimately the fans went away.

If the new series provides a better product to the customer, it will thrive.  But I’m leery of any product in any industry that is introduced not because it is a better product for the ultimate purchaser, but because it is a better product for the product vendor.

P.S.  Sorry to get my panties in a bunch over this, but my degree is in economics so I tend to get passionate when my beloved theories/perspectives are implicated.  Peace.