CITY OF LACONIA

MOTORCYCLE WEEK ADVISORY COMMITTEE

 

SUBCOMMITTEE REPORT

(Event Model Research Subcommittee)

 

PROPOSAL: That the City should actively engage in the business of Bike-Week-related merchandising through licensing, direct marketing, contract marketing, or a combination of all three.

 

DEFINITIONS:

 

Licensing- The collection of fees and royalties for allowing other businesses limited use of the City’s intellectual property  (registered under trademark and copyright laws), such as logos, patches, original artwork, and the like.

 

Direct Marketing- The direct retail and wholesale sale of products produced by and for the City, via the internet, local outlets, and vendors, by City employees.

 

Contract Marketing- The direct retail and wholesale sale of products produced by and for the City, via the internet, local outlets, and vendors, by contract with merchandising or marketing firms.

 

RATIONALE: The Laconia Rally, like Daytona and Sturgis, is a commercial behemoth. Although actual economic data are rare, it is estimated that the Rally generates many millions of dollars, perhaps several tens of millions, for business concerns directly or indirectly involved. Much of this revenue leaves the region in the pockets and bank accounts of vendors. Merchandising items as diverse as tee-shirts to vehicles, and everything in between, these largely itinerant vendors keep coming back because the retail business derived from Laconia’s 200,000 or so visitors is enormous.

 

The City could easily earn a share of this business through licensing and marketing. To do so would pose little threat to local businesses, many of which could profit by producing, warehousing, packaging, shipping and marketing the merchandise. And most importantly, the City could make many thousands of dollars in net revenue per year.  That money could go directly into the general fund or into a business enterprise fund; either way it would provide tax relief without significantly increasing expenditures.

 

                                                                                    Respectfully submitted,

 

 

Date: March 12, 2004                                                 Peter R. Brunette

                                                                                    Event Model Research Subcommittee