Head And Neck System service poll.

[gsbaker]

What if a racer could sign up for a program that provided them with a brand new head and neck restraint at no charge if they crashed? If they crash ten times in one season they get ten replacements for free. Or, the whiney wussie racer grazes the wall and wants a new one, just to be safe. It doesn't matter if the product is damaged, they get a new one when they send back the old one.

Here is the situation we are trying to address: A racer buys an ISAAC system and crashes. Their first thought is, "Glad my safety gear worked!" Their second thought is, "I wonder if my ISAAC has been damaged?" It is a perfectly reasonable question, and one would think a question the manufacturer would be able to answer. Well, we are able to answer it, but there are some odd economics involved. For one thing, the total cost of properly analyzing a system would be substantial, principally because of the time involved. Another factor is that it would be disruptive; we'd have to stop everything, conduct the analysis, and ship everything back ASAP so the racer can get back on track. We can do that of course, but it would be much simpler to just ship a new one.

Our present policy is that if you hit something hard you should buy a new ISAAC system. That stinks, but we have no real option. Racers don't like it and we don't like it, because you just know that some post-crash racer somewhere is saying, "I don't want to spring for a new one, and this one looks fine." This bothers us. A lot.

So, if you had already invested in a high performance head and neck restraint, how much would you be willing to spend annually to get a free new one? Something like a maintenance fee. Another option is to make it like an extended warranty, i.e. you just pay extra up front and it is good for X years.

The guy who does parade laps with his vintage car twice a year will not be interested, and the oval guys crash so often that they could strain the numbers. Nevertheless, we are convinced this is a service that can be very valuable to many active racers and want to get some idea of its perceived value, so please give us your input.

Any other ideas in support of this effort would be welcomed.

Thanks!

[lateapex911]

It's too bad you couldn't include some kind of sensor that the user wears that would help determine when it's worth sending in for replacement. Like the shock sensors the shipping companies use. Of course, it would be at the lowest impact level probable to do any damage, and then a bit lower to be conservative. Of course, it might end up that that level was so low, you might as well just have them send it in whenever.

I know that a typical crash load is much different than a dropped package, but it would be a good way to at least eliminate some useless returns, at least from the honest folk. Guys like me don't want to send it in for minor stuff, but we would if we had an indication that the load was beyond what was considered to be the possible damage threshold.

I didn't look at the poll and decided $50 - 100 was probably the right amount, and so far in my Issaac ownership, I'd have taken you up on one exchange as a precaution after the rib snapper at the Glen.

If you do it, please make it easy. I sign up, and the money comes out of my account on a certain date each year, and you send an email warning 4 weeks, then another 2 weeks in advance, so I can opt out if I decide.

The last thing I want is another once a year bill I have to remember.

[erlrich]

When I read the question, my first thought was that 10% of the cost of the unit was a very fair price for this kind of protection; so the $50 - $100 range made sense. Someone with the Link might not feel that way though, so maybe a percentage of the cost of the system would get more people to sign up.

The other thing I would suggest is that a copy of the accident report (logbook entry?) would have to be included with every return, to keep guys from just trading in their ISAACs for a new one every so often.

[pballance]

FWIW, I work for a company that performs highly specialized integration of electronic components. Our annual service/maintenance/extended warranty agreements run along the lines of tens of thousands of dollars a year for exactly the service you are offering. Of course the initial costs is considerably higher as well.

I am looking at it as a cheap insurance policy, How about this. Include 1 years replacement in the initial cost with a discounted rate for purchase of second and/or third year replacement coverage at the time of purchase. Also consider a small surcharge for replacement if it is required more than XX times in a 12 month period.

Just thinking out loud and I will be purchasing a H & N system this year.

Thanks for asking about this.

Paul

[RacerBill]

Actually, I agree with numbers 3, 4, & 5. But I voted for #5 since that would probably be a price that would provide a reasonable return to the manufacturer. Although, with numbers 3 & 4 you would probably get more participants in the program.

[spnkzss]

I don't mind paying a yearly fee for somehting like that, but if I take a year off, for example I have a kid on the way, I can stop sending checks, but the following year start up again, with the understanding that as long as I'm not paying I'm not covered. I would just hate to keep paying for a warranty on something that I'm not using, but have to keep paying so that one day when I start racing again I can't renew. Call it insurance and not a warranty.

[Speed Raycer]

This might not adhere to the KISS principle, but I'll toss it out there anyway. You could lower the "insurance" to the $50 per year range and include a "deductable" of $X00 per occurance. So if mr safe racer pays the $50 a year insurance for 5 years, then crashes, he pays $X00 and gets a replacement unit.

The deductable goes down after so many insurance payments, but goes back up after a replacement. That gives mr vintage a green light to take the plunge and mr roundy round a reason to stop crashing ;) but keeps him safe if he does.

Probably a clerical nightmare.

Very exciting that Isaac is even contemplating this!

[gprodracer]

Just another idea to toss out here Gregg,

What is the "life expectancy" of the Issac if it is used, but never "tested"for lack of a better term? Based on that figure, you might consider "pro-rating" the price of replacement (sort of like pro-rating a tire based on the mileage rating). This might help offset the cost to you for the people who continually "test" your product.
Excellent thought process on giving your customers bang for their buck, and standing behind your product. You don't see the tire companies giving replacements when someone goes into a corner way too deep, and destroys a brand new set of tires! (Just an example..no one get upset please)

Mark

[gran racing]

Interesting results thus far. I'll admit that I voted "think it's a good idea, but I'd take my chances" guy.

[Bill Miller]

Gregg,

I appreciate what you're trying to do, but I'm not sure how you achieve it, and make it a good business decision for your company. I like the idea of discounting a future purchase, but that's just a customer relationship and marketing tool. I look at it like this, if I test safety equipment, I'm going to replace it. When I was on the Fire Department, I was part of their High Angle / Technical resuce team. We had a rule, that if one of our rescue ropes was ever shock-loaded, it was discarded. You wouldn't re-use a set of belts after a crash would you? And you wouldn't expect the belt vendor to replace them would you?

I realize that dishing out another $700 - $800 for a new H&NRS is a lot of $$$, but you (as a company) have to be able to cover the cost of replacement, if you go that route. I don't see how that doesn't find it's way into the cost that everybody pays.

JMHO

[lateapex911]

Seems to me like Isaac could MAKE money this way. Or at least come close to breaking even. It's all math, but recurring revenue is a cool thing.

Lets say they've sold 1300 Isaacs. And half those folk pony up at $75 a year...thats $48,850 coming in.

And lets say that the cost to get an Isaac out the door is $300. The break even point would be 163 users sending in for a new one. Thats about 1 in 4. I've had mine for 4 years, and I'd have taken advantage of the service once if it had been in place, so if my use is average, the plan might have merit.....

Of course, my numbers might be total BS, but there might be tax advantages too, who knows. Call the accountants!

[gsbaker]

You guys are great; this helps a lot. Is it any wonder we float our trial balloons here first? :)

Financially, our objective is to not lose money on this program. If we achieve that three good things happen: 1) Someone somewhere has their neck saved because they were motivated to keep their ISAAC fresh, 2) we don't get sued, and 3) we may sell more systems because of the program option being available.

The numbers are all over the map, so your input here has proved very helpful.

Thanks all!

[abreakey]

Gregg -- Had an option like this been available a couple of months ago, it would likely have made me decide to purchase the Isaac device instead of the HANS device I just bought.

adamb

[gsbaker]

Adam,

Thanks for mentioning that. It's an example of the value of the program simply being available.

Uh, any chance you could return your HANS? ;)