February 2010
www.fourriversbusiness.com
IN THE
DRIVER’S SEAT
Cowen Enterprises banking on NASCAR simulator
UP IN THE AIR
Brown win derails health care bill; Obama wants scaled down version New jet service brings faster flights, cheaper fares
INSIDE Entrepreneurship: How far have we come?
Business owners: Be smart and not afraid to fail
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Four Rivers Business Journal
February 2010 | 19
JOHN WRIGHT | The Sun
Randy Penney talks about his vision for letting NASCAR fans become actual drivers through simulators shown in the background at his Benton facility.
Cowen Enterprises banking on NASCAR simulators BY JOE WALKER jwalker@paducahsun.com
When Randy Penney attends a NASCAR race, he studies the fans who would give anything to experience the thrill on the track. “Most people see spectators,” he said. “I see drivers.” His dream of building and marketing realistic racing simulators is incubating in a nondescript shop at 107 B St. in Benton, a short distance from Leon Riley Ford. Penney built four prototypes, and his former boss — Mike Cowen, a racing fan and chairman of Murray-based Cowen Business Enterprises — saw enough potential to join with Penney last year in forming Motion Design Group LLC.
They plan to initial ly market the simulators with racing leagues in sports complexes, restaurants and bars. The best drivers would compete weekly to qualify for weekend racing, and families Cowen would watch the excitement on big screens. “It would be like a bowling league, but a lot less expensive than actually racing cars,” Cowen said. “We see it as being a significant business for us. It has the potential to do multimillion dollars in sales fairly quickly.”
The Sim Racer Arcade model is the first in a series of simulators soon to be test driven at various locations in the area. Motion Design plans a small test market in Paducah early this year, said Cowen’s son, Marc, vice president of marketing and sales for Motion Design Group. He said the firm is exploring various other markets, including arcades, racing sponsors and so-called superfans. The arcade simulator features arcadestyle stock car racing software, 5.1 Surround Sound, high-definition widescreen display, realistic racing controls and racing seat. It features a bill acceptor for commercial settings, events, sponsors, and trade shows.
Penney said the body of the simulator can be painted to match an organization’s color scheme. Corporate or team decals and wraps are also available for marketing and promotional events. “You don’t buy a car, you don’t work on it when it wrecks, you don’t get hurt,” Penney said. “This opens the door for a lot more people to be in a competitive racecar.”
Big dream With a diverse construction background, Penney got hooked on NASCAR when he first saw on a neighbor’s televiPlease see SIMULATOR | 20
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SIMULATOR: New
www.simracerpro.com www.thesimfactory.com
firm is a good fit for Sportable Scoreboards
Go online for more information about simulated racing.
CONTINUED FROM 19
sion Dale Earnhardt Jr. race more than 16 years ago. He later saw an online racing computer simulator with a steering wheel and pedals, and built a home-use prototype on a small chassis to give a better feel for being in a racecar. He kept dreaming the dream and sold the idea to Mike Cowen in late 2007 while working at Sportable Scoreboards in Murray, the flagship company of the Cowen family enterprises. “I told him I’d finance it if he’d do all the technical stuff,” Cowen said. The Sim Factory of South Bend, Ind., wanted a commercial simulator to complement its $50 ARCA Sim Racing game, so Penney built four prototypes ranging from a $3,500 model with no motion to a $35,000 “Cadillac” version with all the moves and electronics allowing a crew chief to control fueling, tires and other strategic decisions. He also wrote software giving the simulators enhanced movement with The Sim Factory software, which he called the most realistic on the market. “The technology to make things move is what we’re developing,” Penney said, noting that it can be used for flying, skiing and other sport simulations.
JOHN WRIGHT | The Sun
James Mays puts a sander to a simulator still under construction at the Benton facility.
Tommy John factor Sportable traditionally competed against other factory-direct manufacturers that comprised about 40 percent of the scoreboard market. Last summer, Sportable hired former Major League Baseball pitcher Tommy John as the kingpin of a new nationwide dealer network for ScoreComm, a Sportable division that makes high-tech scoreboards for baseball, football and other sports. “I’ve never done anything like this,” John said when first visiting the Mur-
ray operation. “But I can meet people.” Cowen said the mounting dealer network expands the company into the other wide realm of local sales, service and installation. Starting with southern California and four major cities in Texas — including John’s Dallas-Fort Worth area — plans call for dealerships in more than 20 major metropolitan areas within two years John’s visibility and credibility; the growing dealer network; and new, innovative scoreboards to be rolled out later this year are keys to five-fold growth projected in 2010 over 2009, Cowen said.
Sportable synergy Cowen Business Enterprises Although Motion Design is a separate venture, it fits well with Sportable Scoreboards’ helping pioneer wireless, light-emitting diode (LED) scoreboards for customers from elementary schools and youth leagues through the smallcollege level, Mike Cowen said. “We have a lot of structure at Sportable — graphics, marketing and some manufacturing processes and materials we’ve been able to use in Motion Design Group,” he said. “We could conceivably build some parts of a car in our shop at Sportable.” Extensive contacts via Sportable and other Cowen firms afford a marketing edge for Motion Design, he said. “What we’ve learned in business at Sportable has carried over, allowing us to move more quickly and assuredly than otherwise.”
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Headquarters: 106 Max Hurt Drive, Murray Other sites: Benton; Corona, Calif.; Dallas; Evergreen, Colo. Employees: 62 in Murray, three elsewhere in U.S., 15 in Asia Customers: More than 5,200 nationwide Ownership: Cowen family — Mike Cowen, chairman; sons Andy and Peter Cowen, managing partners; J.R. Penney, managing member Companies: Motion Design Group, manufacturing racecar simulators — Mike Cowen and Penney, partners. Sportable Scoreboards, manufacturing electronic scoring displays and outdoor illuminated marquee signs
— Mike Cowen, CEO. Innovative Display Products, distributing electronic messaging displays, gas-price signs, outdoor illuminated marquee signs and scoreboards — Mike Cowen, CEO. Cowen Properties, real estate leasing — Mike, Andy and Peter Cowen, partners MS1-Aviation, aircraft leasing — Mike Cowen, CEO Numeritex Display Products, manufacturing sign-display products — Andy Cowen, president Evergreen Marketing, sales/marketing/distribution of scoreboard and sign products — Peter Cowen, president
The company promoted inside sales representative James Hammack to product brand coordinator for ScoreComm products. “Tommy is so well recognized as a quality person that we’ve had him at a number of different shows, and have taken him to big customers to win over,” Cowen said. “He’s done a marvelous job.” Despite the recession, 2009 sales were relatively even with 2008, Cowen said, but profits declined somewhat because of heavily investing in new products and markets, he said. Among the newest products is highend ScoreComm elite, costing $100,000 to $200,000 per scoreboard and targeting big-budget high schools and minor league baseball. “We picked up some pretty experienced people from other firms, allowing us to upgrade our technical competence,” Cowen said. “We just hired a mechanical engineer and an electrical engineer to help achieve the technical objectives we’ve been after.”
Business diversity The dealer network is among the latest evolutions for Sportable, which the Cowen family moved from southern California to Murray in 1995 because of its laid-back, lakes-area lifestyle. Doubling sales every 18 to 24 months, the firm grew in five years from a threeman operation working out of a garage into a 60-employee, $2 million, computer-automated manufacturing and office building in the industrial park off U.S. 641 south of Murray. Sportable has branched into several divisions, including All-Star Scoreboards, sold to soft drink bottlers; Varsity Scoreboards, a factory-direct wholesaler; McGregor Scoreboards, marketed through the world’s largest athletic equipment catalog dealer; and Legacy Scoreboards, which makes Please see SPORTABLE | 31
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BIZ BUZZ CONTINUED FROM 7
527-4326. ■■■ Richard Tapp of Tapp’s Auto Sales, 2167 Irvin Cobb Drive, is putting customers on wheels in a different way with his Flip Side Skate Shop in a building on the same property as the vehicle lot. The new shop specializes in skateboard gear — new complete boards or parts for repair or upgrading. Ready-to-roll rigs, decks, wheels, pads and bearing sets all are on display. Hours: 9 a.m.-6 p.m. weekdays; 9 a.m.-3 p.m. Saturday. Information: 575-0061. ■■■ Community Bankers Associations of Oklahoma, Washington and West Virginia have endorsed Web@Work and the Web@Work Board Portal, corporate Intranet services provided by Paducahbased Computer Services Inc. Also, CSI said its new partnership with financial services software provider Plansmith allows expanded product lines including enhanced forecasting, budgeting and interest rate risk-management services for CSI-served financial institutions. ■■■ CVS Pharmacy opened Jan. 10 at 100 S. Sixth St. in Mayfield, replacing a CVS at 1105 Paris Road. The 20-employee store takes up much of the Mayfield court square, replacing an old building housing the former Mayfield Gym and two vacant storefronts that collapsed in May 2007. ■■■
Sun files
Hayes Shoes recently opened at 5181-B Hinkleville Road in the rear of Superway convenience center. Paducah-based United Propane Gas acquired Eastern Carolina Propane Gas located in Wilson and Farmville, N.C. Details were undisclosed. UPG serves more than 250,000 customers in 10 states. ■■■ Paducah Bank pledged $125,000 to West Kentucky Community & Technical College for the Community Scholarship Program, designed to improve the community work force, attract business and help students appreciate good habits in school and on the job. CSP proposes to pay tuition for as many as 60 college credits at WKCTC. Eighth-grade students planning to enroll at WKCTC in fall of 2014 will be the first eligible for CSP funding. They must meet performance and attendance criteria and enroll to partici-
pate. The college will start recruiting next spring. ■■■ Mississippi-based Secured Loans is looking to refurbish the former CocaCola Bottling Plant at 3141 Broadway in hopes of leasing space while continuing to market it for sale. W.H. Wright of Secured Loans plans to repair the roof, repaint and make other improvements, said Brent Gregory, a Coldwell Banker real estate agent who lists the property. Information: Gregory at 444-7444 or 5563233. ■■■ Sulli’s Steak House opened Dec. 11 at 900 North 32nd St. in the former B. Russell’s location. Co-owner Jeff James called the eatery casual, comfortable and affordable, featuring prime steaks, filet medallions and 20 other entrees
including seafood and pasta. Hours: 11 a.m.-10 p.m. Monday-Saturday. A full side-door, to-go lunch and dinner menu are available. Information: 444-9700. ■■■ The Old Bait House, 2005 Irvin Cobb Drive, is a new dealer of Skeeter highperformance bass boats. The Skeeter boats will join other lines — Stingray runabouts, Avalon pontoons and Crestliner aluminum bass boats and johnboats for fishing and hunting — sold by The Old Bait House, said co-owner Marvin Grief. ■■■ Hayes Shoes opened at 5181-B Hinkleville Road in the rear of Superway convenience center. Owners Russ and Jeff Hayes sell work, comfort and safety shoes, some purses and accessories for men and women, said Mindy Knight, assistant to the manager. Hours: 9 a.m.-6 p.m. Monday-Saturday, 1-5 p.m. Sunday. Information: 933-1118. ■■■ Energy Fitness, 2343 Holt Road, and Energy Fitness Midtown, 3425 Oak St., now offer reciprocal memberships allowing members to use either facility. Owner Jeff James said the goal was to offer the community’s best health and wellness programs. Information: Energy Fitness — Sharon Hagan, shagan @energyfitnesspaducah.com, 554-7222; Energy Fitness Midtown — Brooks Barton, bbarton@energyfitnesspaducah. com, 443-PLAY.
Got a tip for Biz Buzz? Call Joe Walker at 270-575-8656, send a fax to 270 - 442-7859 or e - mail buzz@paducahsun.com.
SPORTABLE: Cowens broadening business CONTINUED FROM 20
scoreboards shaped like balls, sports equipment, fields, mascots, states and flags. The Cowens also have broadened into the sign business with a sign division called SignOptix. Andy Cowen spun off Numeritex Display Products, which makes electronic message boards. “We’re moving aggressively into the sign market,” Mike Cowen said. “Andy is a manufacturing and operationstype guy who loves to develop new
Major League pitching great Tommy John chats with Jeremy Lofton as he works with one of the products under construction at Sportable Scoreboards in Murray. John joined the company as a sales consultant last year.
products. We’ll market and sell for his company, and he’ll build circuit boards for us.” Cowen said automated equipment will replace some of the Numeritex work done in Taiwan. “Like everybody else, we’re concerned about transportation costs,” he said. “Another benefit for us is reducing inventories and some of the risk involved in that.”
Contact Joe Walker, journal editor, at 270-575-8656. JOHN WRIGHT | The Sun