Issue #1

under Newsletters

KIC Board of Directors Meeting
February 22, 2002
St. Charles, Illinois

In Attendance
Charles Pistorio, President
Bob White, Executive Director
Norm DeBoever
Tom Fehring
Stan Kovalak
Curt Paluzzi
Darrell Sitarz

Call to Order
The meeting was called to order at 6:18 PM

Financial Report
Bob White reported the following:

Checking Account Balance: $17,337.53
Certificate of Deposit: $21,648.50

Bob pointed out that there were some unpaid bills as well as some unrecorded membership renewals not reflected in these totals.

Stan Kovalak made a motion to accept the financial report. The motion was seconded by Norm DeBoever and approved unanimously.

Board of Directors Elections
Charlie Pistorio stated that, for personal reasons, Henry Mills will probably not continue as a board member. A full board is nine members; therefore, there are three positions to be filled. Charlie pointed out that board members must also be KIC members. He asked for nominations from the other board members present. Several individuals were discussed. It was decided that these individuals would be contacted on Saturday, February 23, at the KMI show to determine their interest in the positions. The names of those interested would be submitted by FAX to KIC members for a vote. The following individuals were contacted and indicated their interest: Angelo Sodano, Brian Billings, Tom Johnson, Dave Larson and Curt Paluzzi.

Web Site and Credit Report
At the time of the meeting the KIC website was down. Everyone present agreed that the site needs to be improved and reactivated. Bob White was in process of discussions to obtain quotes for reactivating the site. While the site is down, the newsletter, credit report and membership list is all being mailed on a bimonthly basis.

There was a lengthy discussion about the credit report. The board members agreed that the report is a major factor in keeping members. The discussion centered on the following:

  1. Cost effectiveness of maintaining the credit report on the website
  2. Need to keep access current in order to exclude prior KIC members who do not renew their membership
  3. Difficulty of accessing the report on the website
  4. Process for updating the report
  5. Some member’s preference for a monthly FAX or E-mail of the report
  6. Potential liability of unauthorized access to the report through the website

As the result of the discussion, the board members developed a questionnaire to help determine how many members would prefer to receive the report. Board members were to survey exhibitors at the KMI show to help reach their conclusion.

Summit Meeting
The second “summit” meeting was scheduled for Monday February 25, 2002. Representatives from all the invited organizations were expected to attend.

Reception at the KMI Show with Sam Hornish Jr.
Former karter and current Indy Racing League champion Sam Hornish Jr. will be the guest of KIC at a reception on February 23. The reception is scheduled from 6:00 PM to 8:00 PM and is open to all KIC members, KMI exhibitors and guests.

Membership Drive
Because of time restrictions on the meeting room, discussion on the membership drive was limited. The board agreed to add several questions about KIC membership to the survey to be conducted at the KMI show.

Next KIC Meeting Date:
There was a discussion of potential sites and dates for future meetings. The board agreed to plan meetings at easily accessible, centralized locations such as Chicago and Indianapolis. They also agreed to “piggy back” meetings with other events when possible. The next meeting was scheduled for June 15, 2002 in Indianapolis. Another meeting was tentatively scheduled for February 2003 at the KMI show.

Non-Agenda Items Discussed

Travel Allowance:
There was a suggestion that the lack of a travel allowance may be a barrier in recruiting board members. KIC currently has a flat travel allowance of $250 per meeting for any board member who requests reimbursement. The board discussed whether there should be a two-tier allowance based on distance or method of travel and if payment should be automatic to all attendees or only upon request. Tom Fehring made the following motion; payment to be made to all attendees at $100 for travel up to 500 miles and $250 for travel greater than 500 miles. Payment would be made for meetings after February 2002. Darrell Sitarz seconded the motion and it was unanimously approved.

Adjournment
About 9:00 PM Darrell Sitarz made a motion for adjournment. The motion, seconded by Stan Kovalak, was unanimously approved.


KIC Summit Meeting II
February 25, 2002
St. Charles, IllinoisAttendees:KIC:
Charles Pistorio
Thomas Fehring
Bob White
Darrell Sitarz 

Sanctioning Organizations:
Brad Swiggart, IKF
Jim Murley, SKUSA
Ken Venberg, WKA
Dave Larson, IRA
Fred Marik, NAKA

Charles Pistorio called the meeting to order about 9:00 A.M. Each of the attendees was asked to introduce themselves. Charlie then offered to review the minutes of the prior meeting.

The following agenda topics were discussed:

Overlapping of national race schedules
There was a general discussion about the number of races for all the various organizations compared to the finite number of race dates available during the year and the need for kart races to compete with other forms of racing for track availability. All the participants agreed that little could be done to change race overlaps for the current year. However, Ken Venberg suggested that each organization identify the dates that were traditional or special to their organization so that other organizations could attempt to avoid those specific dates. Darrell Sitarz volunteered to prepare a matrix of all race dates for all participating organizations. This will identify any overlaps for the current year. He also agreed to prepare a similar matrix for 2003 that would identify the special dates that each of the organizations state they would like respected. This would allow the participating organizations the opportunity to coordinate their schedules at an earlier date.

Organization of National Tech Committee
At the prior meeting, KIC proposed establishing a national tech committee to address uniformity in engine and chassis specifications. Uniformity in specifications would make it possible for racers to move from one organization to another without being disqualified. The objective is that the same engine/chassis would be subject to the same tech inspection wherever it was raced. Tom Fehring emphasized that the committee would be dealing with technical specifications (bore, stroke, etc.) and not rules for classes, weights, etc. There was a general discussion on the magnitude of the problem, how the differences would be identified and how the common specifications would be identified and agreed to. Some attendees expressed concern that the common specifications might not be in the best interest of their individual organizations. Bob White, who will chair the tech committee, indicated that it is his intent that the committee will develop a set of specifications and present them to the participating organizations for review and approval. None of the participants objected to proceeding on this basis.

Listed below are the nominations for the tech committee:

Organization 2-Cycle Representative 4-Cycle Representative
IKF Jack Hoegerl Syd White
IRA Scott G. Evans Scott G. Evans
WKA Steve Jacobsen Robin Bradshaw
CART Jim Stroud Dennis Scott
SKUSA J.R.Clasen
NAKA Scott G. Evans

Bob White will contact the committee members to initiate the process.

Safety Issues
Charlie Pistorio initiated the discussion by voicing his concern that he frequently sees karts being driven that, in his opinion, are not safe to race. He believes that some of the time existing rules may not be enforced; however, he believes that some rule changes are also needed to make racing safer.

Representatives from several organizations described their own “pre-tech inspection” processes. In addition to pre-tech, SKUSA does follow-up inspection on the grid and spot checks in the pits. IRA racers must go through pre-tech before they can register to race. Most noted that safety cannot be guaranteed and the term pre-tech inspection is used rather than safety inspection for legal reasons. Many of the representatives cited examples of lawsuits that involved safety issues.

Jim Murley raised the issue of having a uniform set of pre-tech standards. He suggested that an impartial party, such as SFI be asked to develop such standards. Tom Fehring suggested that manufacturers should also be required to meet SAE requirements for such things as brakes, seats, driving suits and neck collars just as these requirements are placed on helmets.

Fred Marik volunteered to contact SFI. He supported the idea of a common set of standards so that no one organization could be cited as following substandard rules in the event of a lawsuit.

Improving Track Conditions
Charlie Pistorio introduced the topic of track conditions. He cited rest rooms and food facilities as important if karting wants family involvement.

Several of the participants acknowledged trying to devise some type of grading system for existing tracks. Fred Marik stated that he has obtained permission from CIK to use their track standards. These standards include track width, barriers, etc., that are as applicable to the US as they are to Europe. Fred indicated that he has been distributing these standards to track owners and people planning to build tracks. He hopes to have a listing of existing tracks, graded 1-4 (good to bad) within a year. However, his ratings will deal only with track conditions; he is not currently assessing the amenities (rest rooms and food facilities). Tom Fehring expressed his interest in surveying track amenities and suggested he may be able to cooperate with Fred in his survey.

There followed a discussion with the general theme that karting is part of the entertainment industry, whether it is the entertainment of the karter or the spectator. There was some discussion of reduced admission prices for spectators, an upcoming motion picture involving karting and the boom in indoor kart tracks.

Simplifying Tech Book Language
Charlie Pistorio introduced this topic by stating that the objective is to have tech book language that is understandable to a beginning karter and which can be enforced from a technical standpoint. Tom Fehring suggested that when the tech committee comes up with their common specifications that they been sent out to a tech writer to be written properly. By properly he means specifying accurate measurements and tolerances and tools to be used for such measurements. His objective is to eliminate areas that are subject to interpretation. Several of the participants noted that many of the existing specifications would be improved simply by adding a statement “as measured by” which names the tool to be used. There was general agreement that the common specifications need to be written so that a non-technical person can understand them, but they must be sufficiently clear to eliminate judgment areas. Some participants suggested going to an outside tech writer after the tech committee develops it common specifications.

Plans for the Future
Bob White initiated the discussion by suggesting that KIC form a tech team that would be hired out to member organizations to do tech inspections at various races. Such a team would be composed of retired machinists, college students and employees of SAE-type organizations who would be technically competent but with no ties to businesses in the karting industry. Reaction to Bob’s proposal was mixed because of the potential cost of hiring the tech team.

Charlie Pistorio asked the participants to share their plans for the future in karting. There was general agreement that the karting industry has to change the way they’re doing things: to develop an infrastructure and educate dealers and manufacturers about how to do business better, to get kids and families in at an earlier age, the need to change the perception of karting (from the backyard “go-kart”) and to go outside karting for new people and new sponsorship.

Non-Agenda Items Discussed
At Brad Swiggart’s request, Fred Marik gave a brief vision statement for NAKA. It included getting people in from outside karting, making tools available to retailers, improving tracks, obtaining good statistics and demographics and government relations. When questioned specifically about the current year, Fred stated that NAKA is administering the Star of Tomorrow program for Brian Herta and his associates.

The meeting adjourned at approximately 2:30 PM with tentative plans to hold another meeting at the SEMA show in Las Vegas next fall.

Total numbers from KMI show survey
(02/23/02)

1. Have you heard of the Karting Industry Council (KIC)?
YES - 44
NO - 12

2. Are you a current member of the Karting Industry Council (KIC)?
YES - 12
NO - 44

3. Are you a previous member of the Karting Industry Council (KIC)?
YES - 11
NO - 45

4. Do you have Internet access?
YES - 52
NO - 4

5. Have you seen the KIC website?
YES - 19
NO - 37

6. Do you use the KIC credit report?
YES - 9
NO - 47

7. Have you previously used the credit report?
YES - 9
NO - 47

8. Would you prefer to access the Credit Report via Internet or by Hard Copy (fax)?
Internet - 36
Fax - 20

9. What importance do you give the following- (scale 1 to 4), 1 = Highest

Newsletter –
13 #1
21 #2
14 #3
08 #4

Credit Report –
26 #1
15 #2
08 #3
07 #4

Inter-Club Engine & Chassis Specifications –
10 #1
12 #2
14 #3
20 #4

Inter-Club Racing Calendar –
03 #1
09 #2,
20 #3
24 #4

10. Do you believe that KIC serves a useful purpose?
YES - 40
NO – 5 (11 had no comments)

Ten Marketing Mistakes Small Businesses Make
By Meir Liraz

How do you judge the effectiveness of your small business marketing efforts? Easy…does it produce results? Great looking ads, fancy logos and flashy web sites are worthless if they don’t bring business to your door. This list of 10 common marketing mistakes can help you produce better results.

1. Not Having a Clearly Defined USP.
Do you want to fit in or stand out? In order to thrive in today’s cluttered marketplace, every business owner must be able to clearly articulate an answer to the question, “Why should someone do business with you rather than your competitor?” “What makes you unique? Your answer to these questions constitutes your Unique Selling Proposition. Do you offer 24-hour, 7 day a week service? Do you offer the lowest price? Do you offer a no risk guarantee? A strong USP helps you to stand out in a crowded field.

2. Selling Features Rather than Benefits.
Someone once said, “No one ever bought a drill bit. Millions of people have bought a hole” People don’t buy features, they buy benefits. They are tuned into Radio Station W.I.I.F.M. (What’s in it for me?) Tell them clearly how the features of your product/service will help them, make their life easier, etc.

3. Not using headlines in print advertisements.
You have at most a couple of seconds to grab someone’s attention when they read a newspaper, magazine etc. Using an attention-grabbing headline ensures that the reader will continue to read the rest of the advertisement. The headline is an ad for the ad. Take a look at some newspaper ads. Which ones attract your attention? You will probably find they have utilized an effective headline.

4. Not testing headlines, price points, packages, pitches, everything.
How do you know what ad, what price, what offer most appeals to customers? By putting them to a vote. Test everything. Rather than running one newspaper ad for three weeks, why not run three different ads for three weeks and measure which draws better? Rather than putting all your advertising into newspaper, why not split between newspaper and direct mail and measure the results? Why not price your products/services at different points and see which sells more? Is cheaper always better? Not necessarily. Each situation is unique. One price may outperform another for a myriad of reasons. Your job is not to know why, but to find what works. Test, test, test.

5. Making it difficult to do business with you.
Is your sales staff knowledgeable about your products? Does someone answer your phone promptly and in a friendly manner? Can people find your phone number, location? Can customers find things easily in your store? Put yourselves in your customer’s shoes. Don’t make them work-they won’t. I’ve seen a web site that undoubtedly cost the company thousands of dollars and NOWHERE could I find a phone number or email address. Your customer has better things to do than struggle to do business with you.

6. Not finding out what your customer’s needs are.
What is the first step in filling your customer’s needs? Discovering what they are. What’s most important to them? Don’t even try to guess. You may think price is most important when what they really want is fast service. You may believe fast service is what they want when what they desperately want is a friendly, personal touch. How do you find out? People won’t tell you unless you ask. So ask.

7. Not maintaining an up to date customer database.
Your customer list is pure gold. Rather than always working to bring new customers in the door, why not take advantage of the good will you have already built with your existing clientele? Experiment with extending special offers to your customer base. Ask for referrals. Send them a card on their birthday. Call and ask what they most enjoyed about doing business with you (or what they disliked doing business with you). You worked hard to develop these relationships. Recognize their value and work hard to “re-delight” them.

8. Not eliminating the risk.
What stops a customer from buying from you? Are they unsure that your offer is worth their hard-earned money? Make it easy to decide to buy from you. How can you reduce their risk? If you are in a service business, let them try your service at no cost. If you are a lawyer or consultant offer them a free consultation. Offer them a money-back, no questions asked guarantee on any product they buy. Why not? Are you afraid people will take advantage of you? Give it a try for a month. You may be very pleasantly surprised. Not confident in your product or service? Then go to work on improving your service.

9. Not educating your customers
Don’t just claim that your service is better. Explain why. Is your staff better trained? Do you utilize a technology that increases service turnaround or quality? Don’t expect people to just take your word for things. Quality, Service and Value mean nothing. Everyone claims to offer these. Make these claims real for the customer by offering credible explanations why they should do business with you.

10. Not knowing what works, and sticking with it.
Do you know which ads are effective? What media pulls best? What offer gets the best reaction? By testing (see above) you will. When you find something that works, don’t change it until you find something that works better. Just because you’re sick of an ad/offer isn’t a good enough reason to change it. You can supplement with other ads and offers. If it works, keep it.

Article by Meir Liraz, president of BizMove.com, a free informational web site for entrepreneurs and small business owners that provides free guides and tips for starting, growing and managing a small business.

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