Thrill rides in funfairs... who's behind them

Hi WSOers,

This post may seem rather stupid, but every now and then I think about this topic. Thrill rides (or amusement rides) are being deployed and dismantled swiftly all over the world, yet the provide entertainment to our children, teenagers and grown-ups.

Personally, I remember when I had my first crazy trading day, a bunch of juniors complemented it with a breath-taking twisting thrill ride that we could see outside from our floor.

But think of it... these rides are large and expensive to operate and maintain. According to Sartori's website, an Italian manufacturer of thrill rides- the only one I have been able to find, the typical "Twister" weights more than 70,000 pounds and consume kW 81 for both lights and rotating thrust. (http://www.sartorirides.net/dettaglio_major.asp?lingua=eng&id=105)

A "Dancing Fly", which I see in every funfair nowadays, is not far from the "Twister": with electrical consumption in excess of kW 50 and almost 60,000 pounds of weight (http://www.sartorirides.net/dettaglio_major.asp?lingua=eng&id=104)

Now, I've got no idea about how much these things cost, but they could easily be more expensive than a trailer truck or a sub-urban house. These rides are neither produced nor managed by any corporations (i.e. you won't see a firm like Siemens with a fleet of "Twisters"). This paired with my observation that thrill rides are often owned by humble background, nomad-type of people commonly living in a caravan during the funfairs sparks a series of questions.

Who is funding these? Who produces them (apart from Sartori Italy)? How much money do the producers make? How much money do the owners make? Do they pledge the ride as collateral for the loan as if it was a mortgage? How much does it cost to maintain? Who regulates them? Who sets the standards in this business?

I just dont understand how these things could be everywhere, I'd like to open the WSO discussion on Thrill rides.

 

I have been wondering this myself. How do they possibly make a return? I mean SIX is actually profitable on a ttm basis and has been able to keep up with its interest payments. Who are the customers?

Kids under ~6 are too small to go on rides, and most people over 16 would rather be doing something else. I can't imagine any adult would choose to stand in lines for rides. So that leaves a very narrow segment of the population - families with children between 6 and 16. Worse yet, the business is seasonal. Combined with the high cost of a day at the amusement park and the necessity of geographic proximity....I just don't know how they stay in business.

 
Best Response
West Coast rainmaker:
I have been wondering this myself. How do they possibly make a return? I mean SIX is actually profitable on a ttm basis and has been able to keep up with its interest payments. Who are the customers?

Kids under ~6 are too small to go on rides, and most people over 16 would rather be doing something else. I can't imagine any adult would choose to stand in lines for rides. So that leaves a very narrow segment of the population - families with children between 6 and 16. Worse yet, the business is seasonal. Combined with the high cost of a day at the amusement park and the necessity of geographic proximity....I just don't know how they stay in business.

The rides themselves are a loss leader. It's all the meth and bath salts they sell out of the trailers in the back that keep the show on the road.

 

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