Earnhardt sales going strong
May 30, 2007
CONCORD, N.C. – On the day he announced he was leaving his late father’s company, Dale Earnhardt Jr. fretted over fan reaction.
He worried the “Red Army” wouldn’t understand his decision, and the loyalists would resent him – maybe even boo him- for walking away from Dale Earnhardt Inc. But based on souvenir sales in the three weeks since he made his decision, NASCAR’s most popular driver had nothing to be concerned about.
Sales of Earnhardt merchandise at tracks is up 17 percent since his May 10 announcement, industry analysts said. At www.nascar.com, where his figures spiked 107 percent the first week, sales have now leveled off but are still slightly above last season’s pace.
“I knew people were going to collect. I knew they were going to want a piece of his legacy,” said Chris Williams, director of trackside sales for Motorsports Authentic, the company that manages 60 of the souvenir trailers that are stationed at every race track.
“His daddy wanted Dale Jr. to win a championship at DEI, and people want a memento from that part of his career. Now, if he should start winning races and get into championship contention this season, his sales are going to be like nothing we’ve ever seen before.”
Hats, shirts, beer holders, pins and diecast cars are flying off the shelves at a frantic pace.
Earnhardt is for certain leaving his team at the end of the season, and nobody has any idea if he’ll be with sponsor Budweiser in 2008. But it doesn’t stop the fans from shopping at a dizzying pace.
“I think it all has sentimental value now,” said Lee Madison, of Asheville. “He’s part of history. The red Budweiser 8, get it while you can.”
Earnhardt had five trailers surrounding Lowe’s Motor Speedway last weekend, and a sixth truck sold merchandise for both Junior and the elder Earnhardt.
Rob and Suzanne Carpenter crowded around one early Saturday with their three sons, looking for new gear. They had plenty already – Suzanne wore her Budweiser bikini, with a gold “3” charm on her bellybutton as a nod to Earnhardt Sr. – but needed to pick up the latest fashions.
“We spend about $500 a year, usually on hats, a [beer] cozy or two, maybe a T-shirt. Anything I need to replace,” Rob Carpenter said as he picked up a camouflage ‘8’ hat for his son to wear.
The family didn’t flinch after dropping $53.38, and Carpenter was certain he’d spend more at trailers closer to the track.
Because he makes up 30 percent of the market, Earnhardt has the most trailers and gets the best locations every week. Laying out the sales is a surprising science and Motorsports Authentic has to carefully plan the grid each week.
Jeff Gordon and Tony Stewart rank second and third in sales, owning about 15 percent of the market each, and Williams said he can never put an Earnhardt trailer across from theirs because the shoppers would clog the lane. Although he spaces Junior’s trailers around the facility, there’s no mistaking that each one is in an upfront location.
“As consumers, we shop at the same stores and usually the ones closest to your house,” Williams said. “The fans who go to races are the same way. They park in the same locations, walk into the track through the same entrances, follow the same routine. Since the market shows a high percentage want to buy Junior’s merchandise, you hit all the high-profile areas with his trailers.
Kelley Earnhardt Elledge wants to sign a new deal for her brother by the end of June, a deadline partly set by Motorsports Authentic.
Because souvenir sales make up such a huge part of his annual income – he’s estimated to earn $20.1 million a year, and about $10 million of that is believed to come from merchandise – Earnhardt must have licensing approvals by late summer to ensure he’ll have stocked trailers at next year’s season-opening Daytona 500.