Are you looking to start your karting business but not sure what kind of track design to choose? Are you most accustomed to single level go-kart track designs but keep seeing advertisements for multi-level go-kart tracks that blow your mind? How do you pick which style of go-kart track and barrier system are right for your business?
At Protex Karting Barrier, these are some of the most common conversations that our sales team has with our customers. Our team of go-kart track designers, sales people, and installers have been working with go-kart tracks like these for more than 10 and have included a few insights into some of our recommendations.
Want to learn more about single and multi-level go-kart track designs? Check out these blogs:
Flat-Out Fun: Why Single Level Go-Kart Tracks Still Lead the Race
- All Things Multi-level Go-Kart Tracks
How to Choose Your Track Style – The Basics
Choosing between single and multi-level go-kart track designs will come down to a variety of factors including your business model, market size, local competition, facility space plan, and most importantly, your budget available.
Business Model
Choosing a location for your new go-kart track can be a difficult decision for any business owner. Arrive and Drive (A&D) karting tracks and Family Entertainment Centers (FECs) have very similar needs but with very different methods to achieve the end result.
- A&D karting centers prioritize higher speeds, longer track lengths, and more technical designs to satisfy their customers needs. A go-kart track size for this business model ranges from 18,000 to 30,000 square feet (about 1675 to 2800 square meters).
- FEC karting attractions prioritize high throughput, easy but fun to drive track designs, and the length of the go-kart track does not matter as much. These locations commonly feature additional attractions which may limit the space available for a track design. A go-kart track size for this business model ranges from 10,000 to 25,000 square feet (about 900 to 2300 square meters).
Market Size
Go-kart businesses are started as a profitable investment decision for most owners. The return on investment for a go-kart track is directly linked to the size of the market, your demographic, and your initial investment.
So, how large does your market need to be to justify your track design style for a profitable return on investment?
- Premium markets have a standard population of more than 4,000,000 million people within a 10 mile (about 16km) that are qualified to drive your go-karts by either age, height or other factor. Premium markets have a large enough population that you can build a regular customer base while consistently attracting new customers on a regular basis. Locations like Los Angeles, New York City, London, Paris, Shanghai, Beijing and Singapore all fall into this category. The investment to compete with other major attractions in a premium market are the highest.
- Major markets have a standard population of 750,000 to 2,000,000 people within a 10 mile radius (about 16km) that are qualified to drive your go-karts. Major markets have a large population of drivers like the premium market category but there is room for a wide range of investment levels. Locations like Austin, TX, fall into this category.
- Medium markets have a standard population of 250,000 to 750,000 people within a 20 mile radius (about 30km) that are qualified to drive your go-karts. Medium markets have fewer people cycling into go-kart businesses which reduces the number of karting locations that can be operated profitably. Locations like Denver, fall into this category. Medium markets will need to balance the initial investment, admission price, and local competition to be successful.
- Small markets have a population of less than 250,000 people within a 20 mile radius (about 30km) that are qualified to drive your go-kart. Small market businesses develop a regular customer base but they can also struggle to draw in new customers frequently. Small markets should focus on keeping the initial investment low and upgrade to premium features as your business grows in profit. Locations like Omaha, Nebraska fall into this category.
- Tourist markets may have a small standard population but boom during peak season as people from other markets seek to participate in the main attractions that are offered. Many go-kart businesses have been established to capture the attention of tourists who are looking for things to do aside from the original attraction. Tourist markets will need to balance the initial investment, concept design, pricepoint and advertising budget to continue to draw in new customers while retaining profitability. Locations like Sedona, AZ or Pigeon Forge, TN fall into this market.
Local Competition
Local competition can be a major determining factor for many business owners that are looking to start a go-kart track in their market. Selecting the correct location can mean the difference between several successful karting businesses within a market or spending thousands of dollars monthly to advertise.
We offer our clients the following tips for working in a market with competing go-kart businesses:
- Select a location that is far enough away from your competitors that you do not need to compete for business. For markets with more than 1 million people, this might mean being as little as 5 miles away to attract a business while smaller markets may require 20 miles or more to avoid an advertising battle.
- Choose a business model that does not compete. Markets with Arrive & Drive karting centers attract customers that are looking for a high speed karting experience but may not serve younger drivers. FECs, on the other hand, may provide go-karts as an anchor attraction but provide additional attractions that may be perfect for a kid’s birthday party.
- Good customer service can beat any go-kart track design, no matter how expensive your track. Excellent customer service creates loyal customers while also providing more word of mouth advertising.
Facility Space Plan
Selecting between a single and a multi-level track design is most heavily impacted by how much space is available for your track. Balancing the cost of your initial investment, financing, and your monthly rent may significantly shift your perspective on which track is required for your space. Working with an architect to plan your space can have long term ramifications for your business needs and is highly recommended for premium or major markets or those looking for a multi-level go-kart track.
Other considerations:
- Arrive and Drive go-kart tracks usually offer longer track lengths (over 275m) with higher speeds and a wide variety of corners to challenge drivers. Centers that have smaller facility sizes but want to operate under this business model should plan for an elevated track to justify the admission price to their customers.
- Locations that offer multiple attractions will need to coordinate the clearance envelope with other attractions. Working with a multi-level track design may help save space by running the go-kart track around, through or under/over other attractions.
- Multi-level go-karts tracks require a ceiling height of about 16 feet (about 6 meters) for most designs with nothing hanging overhead including lighting, fire suppression, heating or air conditioning, etc.
What budget do I need for a go-kart track?
Go-kart track budgets can be difficult to estimate until a facility space has been provided and a track can be designed. At Protex Karting Barriers, we are happy to provide complimentary Fit Tests to confirm your location before signing a lease. Protex Karting Barriers does not charge a go-kart track design deposit until an order has been placed.
To help you figure out the budget of a single or multi-level go-kart track, we have provided some considerations and ranges for you below:
- Multi-level go-kart track designs use large amounts of steel to build the elevated sections of the go-kart track. Minimizing the amount of elevated track can help significantly save you money on both materials and installation costs.
- Single level track designs can be installed with fewer laborers compared to a multi-level track and are usually established in less than 14 days from start to finish.
- Longer track lengths will require more barriers regardless of a single or a multi-level track design. We find that tracks between 275 and 320 meters long are sufficient for most Arrive and Drive businesses.
- Single level go-kart track designs usually range from $85,000 to $225,000 not including shipping of containers from China to your door.
- Multi-level go-kart tracks start at low as $325,000 and we can provide larger or more intricate track designs at our customers request. The majority of our multi-level tracks range from $550,000 to $850,000 not including shipping of containers from China and Italy to your door.
- Track designs like what are advertised at Supercharged New Jersey or similar locations frequently sell for more than $1.5 million or more per design.
When developing your go-kart track budget, remember that Protex track designers have a wealth of experience designing and installing these tracks. It is important to remember that a budget is a starting point for your project and our team can build something to meet your dreams at a budget that fills your needs.
Conclusion
Protex Karting Barriers offers its clients more than 15 years of experience developing premium go-kart tracks and barrier systems around the world. Each project that we take on is custom designed, quoted and built to suit our customers’ business models, target market, budget and facility space.
Single level track designs are excellent for new karting businesses that have large amounts of spare available, a desire for high speed karting, more technical corner shapes, limited competition in your local market, looking for a fast return on their investment or a tight budget. These single level designs provide 90%+ of the excitement of a multi-level track but at a fraction of the cost.
Multi-level go-kart track designs are excellent for new locations that are working in small physical locations, have lots of competition in the local market or need space for other attractions. Multi-level tracks are also a great way for established karting businesses to upgrade their track and reinvigorate their business. Unfortunately, multi-level go-kart tracks do not provide an increased return on investment compared to a single level track design but they do help increase the organic advertising potential from word of mouth, social media posts, and those looking to try a different form of go-karting.
If you are still deciding between a single level go-kart track or a multi-level design, our team of sales managers will be happy to help you evaluate your space, project, budget and location to see what makes the most sense for your karting business and your ROI.