RAGBRAI Vendors & Towns
Wed, Jul 14, 2010 | by TJ Juskiewicz
Dear RAGBRAI Riders –
We usually do not respond to every misstatement on the message boards, since we are a bit busy getting ready for RAGBRAI that is just 10 days away. However, when these mistruths get so outrageous, we have to take the time to respond and make sure folks know the actual facts, not just the rumors or innuendo that is distorting the truth.
First off, let me address the most egregious statements from the posting of Mama Ralphael, that were further spread falsely on the message boards by Toko:
“RAGBRAI charges each town an exorbitant amount for the “privilege” of hosting an overnight stop, and has instructed these towns to pass the cost onto the vendors, who have no choice but pass it onto the riders. Because the fees for local buddies are less than half, they’ve essentially created monopolies for the local groups. They’ve cut out the competition without which, as you all know, quality and fair prices suffer.”
RAGBRAI DOES NOT, AND HAS NEVER CHARGED Iowa towns for the “privilege” of hosting. No fee for Overnight Towns and no fees for pass-through towns. Feel free to verify this with the 791 pass-through towns and the 126 overnight towns that RAGBRAI has visited over the past 38 years.
Secondly, RAGBRAI does not receive one penny from any food vending fees on the RAGBRAI Route. Not one penny! There are several things that vendors must do that we spell out on our web site:
RAGBRAI does not make any decisions about what the vendors may offer to sell to participants, nor does RAGBRAI receive any funds from vendor fees. The vendor must have an Iowa Sales Tax Permit if they are a for-profit business. If they are selling food, the vendor must obtain an Iowa Retail Food Establishment License, which requires an inspection.
These are requirements by the state of Iowa that every vendor must comply with. It has been this way for decades. This is nothing new. The state license is $33.50 and the vendors must be inspected before they sell prepared food.
The next thing that we point out on the web site is:
Vendors who wish to set up within the city limits of an overnight town or a town that RAGBRAI passes through need to contact the vendor chairperson of the organizing committee in each town where they wish to be a vendor. The organizing committees determine the vendor fees, which are used by the communities to cover the costs of services provided to RAGBRAI participants. These services include additional sanitation services, additional law enforcement for traffic control, additional medical personnel, etc.
Then we inform potential vendors:
Vendors choosing to set up outside of city limits must obtain permission from the person whose property they are on. The county must be contacted regarding any county permit or ordinance.
This is nothing new. This is the same exact policy that RAGBRAI has had in place since Jim Green was the director of RAGBRAI. There is NO NEW POLICY, there are NO NEW FEES. These are the facts.
Here is another quote from Mama Raphael:
“But the new fees ($750 to $1050 per day) added to what we already pay the property owners ($200-$400 per day) and the porta potties ($300 per day), plus the threat of fines and imprisonment all sadly outweigh our desire to continue feeding RAGBRAI.”
Again, there are no new fees. The local city officials and the local county officials can determine ordinances. Here is the actual policy that Cherokee County set up for the first day.
“There are no fee amounts for non-profit organizations or any resident. Fee for Cherokee County commercial resident are $35 and non-county resident will be $100.”
So let us set the story straight: churches, Rotary, Kiwanis, cheerleaders, softball teams can set up for free. The farmer that wants to set up sweet corn stands or the couple that wants to flip burgers in their own yard have no fee. The local Sub Shop of Cherokee County would pay $35 to set up. The vendor that drives in from North Carolina or Missouri would have to skim $100 off their profits to pay the fee. Not quite the $7,350 in fees for the week that these vendors want you to believe, is it?
RAGBRAI has always backed Iowa communities that support RAGBRAI. We want to see the profits (if there are any after expenses) stay within the community and help fund their churches, youth groups, Cub Scouts, Fire Department, Swedish Dancing Club, Senior Center, Veteran’s groups and the Historical Society over out-of-state business that puts their profits in their personal pockets.
I have seen signs throughout this great state that boldly state RAGBRAI profits helped build this bike trail or built these bathrooms in this park. I have seen playgrounds for kids built with RAGBRAI profits. This is the beautiful thing about RAGBRAI and the generosity of the riders.
This year, two towns stand out in my mind for what they hope to accomplish with any RAGBRAI profits. The town of Plover hopes to fix the leaking roof on their community’s church. The town is working together on this project. The town of Garner decided to use the proceeds to purchase care packages that they will send to our troops overseas.
Those out of state vendors made the decision not to attend RAGBRAI. I have had conversations with numerous vendors such as Tender Tom’s Turkey, Mr. Pork Chop and Farm Boys Burritos to name a few during the ride and in the off-season. They have each said to me that they would certainly pay the requested fees if they choose to set up in a community that has ordinances in place. Chris Cakes (founded in Pocahontas) and the Belgium Waffle Man work hand-in-hand with the local communities as they set up in the fire station or community halls. Again, these vendors agree to the rules that have been set up for decades on RAGBRAI.
Without great Iowa communities, RAGBRAI does not exist. The towns and the townspeople propelled RAGBRAI into the event that it is today. We ask a lot of our communities to graciously host over 10,000 visitors and show them that great Iowa hospitality.
This is not about greed as many have suggested in emails and on the message boards. RAGBRAI wants as much money as possible to stay first within the state of Iowa, then within the county and finally within the community. Towns have real expenses such as traffic control, waste disposal and portable toilets, to name a few things. Counties have real expenses such as preparing and fixing the roadways for cyclists and having the county sheriff’s helping control traffic. To help cover these costs, RAGBRAI would like to see the dollars to stay local.
For people to call counties “extortionists” is ludicrous. When you are pedaling on the brand new asphalt road that Floyd County has just paved as we travel south out of Charles City or the 10+ miles of road between Bankston and Graf that Dubuque County is putting the final touches on as I write this, I’m sure you will be thanking them and not thinking badly of them.
RAGBRAI would not exist if vendors from outside of the communities, outside of the county that we are in, and outside of Iowa making a profit off RAGBRAI and then leaving our state with those profits. When that happens, fewer and fewer towns will step up to serve as RAGBRAI hosts.
One email I received stated about vending fees, “I can only speculate that the town feared loss of coffee sales in town.” The ironic thing here in that the city they mentioned was the home to Mrs. Olsen of Folger’s Coffee fame and was greeting all RAGBRAI rider’s with a FREE cup of coffee as they entered the little downtown.
I hope this cleared up any mistruths that are out there.
We are looking forward to a great RAGBRAI.
Sincerely,
T.J. Juskiewicz
RAGBRAI® Director
Mama Ralphael is a smart business person. They have worked the system for 9 years. If they say they have costs to deal with, I believe them.
You have a lot of words and policy to talk about, but this is about real people making decisions.
As for profits, how come every town wants to be a host or pass-through town? Follow the money.
I’ll concur on ‘missing’ the opportunity to pass both by but I just have to respond to Daryl. I’m also glad ‘not’ to have to ride with someone of your mindset.
First, TJ is not gathering any profits (as i’d hope you could figure out for yourself). Second, clearly your interpretation as disapproval on the monies leaving the state is extreme. It does not “please you”….. i’m sitting here pondering extactly what you mean. You’d rather the monies left the state, the communities couldn’t afford to have the riders through, and the ride stops.
Seems somewhat ‘anit-Iowa.’ I’m also a native Iowan, now living in Washington, but ever since my first ride in 86 i’ve been amazed at this event…the people it brings together…and the time we all have. It is a choice to attend and i truly doubt you could ever find anything this amazing to do the 3rd week in July.
That’s to all you amazing folks that go on this ride with me..
I’ve read through all of these comments and am in total agreement that TJ’s response was right on target. All of this discussion has made my very hungry and even more ready for RAGBRAI than I was before. In twelve RAGBRAI’s, I’ve never stopped at Mama Raphael’s and Free Trade and I guess I never will! There are so many other options!
No tickee….no laundry is a timeless concept Daryl. No permit to do business….no business. A simple concept for some but burdensome for others. Every other vendor had complied with the law which was FAIR. I hope to see Geoffrey and his coffee business return to RAGBRAI in 2011.
As a subcommittee chair for the last two overnights through Ottumwa, I’ve been on the front lines of this debate. It’s ridiculous to suggest that RAGBRAI charges overnight and pass-through towns. Unless Ottumwa last two experiences were abeerational, RAGBRAI splits the proceeds among the overnight towns every year. I think we recieved $16,000 in 2009 and $12,000 in 2000. Those funds were distributed to various community organizations for exactly the kinds of projects TJ mentions in his letter.
Who knows why Mama Raphael’s is so bitter as to start its rant with a lie? But this does nothing to diminish the greatness of RAGBRAI and what it means to so many people.
good riddance to all those out of state vendors who are spreading such negativity. Lets remember, the whole existence of ragbrai is to raise money for these smaller iowa communities. Go Iowa!
I just came to this site to check out the schedules. I am happy to be one of the vendors in 3 cities next week. Hoping to serve many mini donuts and strawberry smoothies to riders and locals as well. We had no issues or questions with out our vendor contracts or fees. Just wish we were a bigger outfit so that we may stop at more than 3 towns. Hope to see you all there!
It would not be a true Ragbrai without Mama’s and Pastafari. I sure hope Pastafari shows up.
There will always be small-minded people that spread lies about something they think has wronged them. What goes around comes around. Hopefully the riders will patronize those vendors that are in it for the good of the town and not just themselves. Go RAGBRAI!!
I grew up in Bankston and have since moved away, but when I was back visiting last week I was amazed at how great the roads were. It’s not a town that typically gets much attention or renovation, but because of RAGBRAI I no longer have to run the pothole obstacle course on Graf Road.
Additionally, my aunts are involved in puting together the events/food for the town and I heard no mention of outrageous costs or fees.
I hope that the RAGBRAI management will clarify this with everyone that has supported the riders along the route. I really miss Little Farm Fair Trade coffee!! We met so many interesting people while enjoying a GREAT cup of coffee alongside the beautiful roads and farms in my home state!
My fees for following RAGBRAI for 5 days this year totalled right at $1000.
$400 to the City of Washta in Cherokee County (supposedly only charging $100 to commercial vendors outside the county. They can mail me back my extra $300 anytime. That said – me and my staff had a good time serving riders in Washta. I thought they did a excellent job as a pass through town. With the exception of Washta we pretty much paid 10-16% off the top for every other stop along the way. Overnight towns and pass throughs…it is right on their application…If you are commercial for profit and not from my town….$400-$800/day.
Some even want to and an electricity charge or a water hookup charge.
Towns run off the script that RAGBRAI recommends as reasonable. I’ve been at the planning meetings and I’ve seen it with my own eyes and heard it with my own ears. So YES, RAGBRAI is not charging the vendors, but they are significantly influencing the graduated rates that pass through and overnight towns charge vendors, who in turn need to recoup that “buy-in” business permit.
At the end of the day it is simply the cost of doing business. Everyone wants their $$$ piece of the pie sold along the highway or in their town. So as I told many towns. If you want me to pay $800 you’re crazy – I’ll find a place outside your city limits and set up for 10%. It certainly makes smaller businees expend a lot of effort to find good spots to vend. And for some towns…the need for greed detrimentally impacts their presentation and support to riders.
I’m sure there is a better way…but RAGBRAI business socialism is aimed at weeding out those unwilling to pay to serve. RAGBRAI coordinators aren’t making the money or the decisions, again – they provide a script and towns that have or haven’t been an overnight or pass through place people on a committee and the committee sets the rates and lives or dies by the rates. Somewhere in there some towns are truely concerned about taking care of riders and putting their best foot forward and some are fixated on the money.
People are people. Perhaps – RAGBRAI could change their fiancial advice to towns for vendor fees next year and we’ll see if the fees drop or raise.
Thanks for a very useful story!
Hello….just wanted to notify all RAGBRAI participants that we are full to capacity & request that no more phone calls be made to reserve rooms.
Thank you,
Management
This will be my 15 yr as a vendor on Ragbrai. It is not Ragbrai who is in charge of fees. It is the town. Some overnight towns are charging $800 or more for us to be a vendor in that town (if you are not a local). Some towns charge per spot, so if you are a big group and need two spots it is 1,600 for one night. When you take this times 6/7 nights, it is a HUGE amount of money. We have to pass this on to the bikers. If you are going to get mad at anyone, get mad at the towns for the fees they are charging the vendors. Thank you.
I am looking forward to vending at several (not all) stops along the route, however, I am concerned about towns like Altoona that are charging $800 for “non-S.E. Polk school district” vendors PLUS $150 deposit that each vendor has to wait to be inspected (which could be midnight or later) before they get their deposit back. Not only do we – as vendors – need to increase our costs (more-so the non-local vendors) to cover our entry fee, but we also have to put in over 16 hours just to see if we can get our deposit back. Seems unfair – and we have chosen NOT to vend at locations that practice this kind of price gouging to non-local vendors. (locals only pay $350, btw)
Do riders stop at the first vendors they see in a midtown or do they wait until they get to that town’s group of vendors? Trying to decide where to set up.