Interview with Premis Industries Brad Phillips - The Guy Behind the Vision - Page 2

ATV Rider: You've been around the ATV industry for a long time. Has the sport come a long way? Or do we seem to be spinning our wheels?

Brad Phillips: Yes and no. The sport has come a long way in the racing segment from when I first started racing. I still remember going to Loretta Lynn's my first time in 1998. It was 98 percent TRX250Rs with a few Banshees and LT250Rs in the mix. There were only 500 entries (compared to the 1000 or so they get now) and it was a much more laid-back family atmosphere. I still recall how amazed we were when we saw Tom Carlson (TC Racing) pull into the track with a 40-foot enclosed trailer, which was all but unheard of back then. Now it's pretty much par for the course. The factory involvement plus the increased television coverage has also benefited the sport a lot. I would say the most important thing in the past five years has been the WPSA involvement. It hasn't only brought ATVs into millions of households via ESPN 2, but it also gave the GNC series competition. Everyone knows competition is good for the consumer (racers and fans). When the WPSA joined the game there were problems with the GNC, but once the GNC had competition they improved and grew by leaps and bounds. I sincerely commend them for that. Now racers are deciding which series to run next year; you can't have two major series, one has to fall (or they could merge). I've heard from several of our racers that the GNC series is looking more and more attractive again. Now we have to ask ourselves, If the racers and fans start to support the GNC series again, will the WPSA go away?

ATVR: With that said, will the GNC, with no competition again, regress?

BP: Given my business education and past experience I think it's likely, but I suppose only time will tell. Another major factor is the economy. ATVs are a luxury item; when there's less disposable income, we suffer. In the racing segment fuel prices along with the economy really kill us. Your average racer may travel 10,000 miles in a year to hit all 14 rounds. At current prices, that's over $3400 in just fuel to get to the race! Add in gate and entry fees, lodging, food, parts, etc., it becomes really difficult for the average amateur to make a run at it. The sport was spinning its wheels for years but is now steadily growing. I think we still have some problems in the recreational realm, though. Frivolous lawsuits are killing the sport's image and the people involved in it. Sales have been fairly flat over the past few years (even though ATVs are the top-selling segment in the power sports market), and we're getting a bad image in the mainstream media. This all has to change.

ATVR: Do you see the creativity factor in the media world as being dry? We hear so often that someone is copying another or an idea was stolen. How realistic is that?

BP: This is all in the eye of the beholder. You could easily argue that I copied another company because I'm producing DVDs with quads in them. I would counter you and say no, our films are much different. We use different riders, different locations, we have a different editor and producer, different music; the list could go on and on. Plus, we focus primarily on the MX racing segment (plus other things on a smaller scale). So who's right? We both are. Yes, there was already an ATV film company out there when we started, but we separated ourselves from that company by giving our films our own style. I say we took a proven idea and put on our own creative spin. But I can certainly understand the issue with copying. I owned a magazine that I started at the University of Iowa. I ended it after a year because Premis was growing so fast. Within three months someone had stolen my idea and even plagiarized my past issues. That ended in court. People need to understand that you can't copyright an idea. Once you put your idea out there, if it's good, it will be copied. It's up to the media to make sure they aren't plagiarizing others. It really comes down to how close you copy someone, and it's really an ethical issue. I do think a lot of media outlets (as well as companies) need to make peace and end their feuds. It seems like so many people are so concerned about what another magazine or website is doing and not concerned enough about what they're doing to improve the sport. A lot of people are trying to get the biggest piece of the pie instead of working together to make the pie bigger. Premis's motto has always been to grow the sport, but that's really difficult when we find ourselves gasping for air due to something within the industry. Everyone needs to come together for the benefit of the sport. Together we stand, divided we fall!

ATVR: That's awesome, and we totally agree with you. You mention the media "feuds"; from your standpoint as a film producer, do you feel the ATV media world is a bit diluted right now? Could that be creating the feuds?

BP: I think I can answer that as more of a businessperson than a film producer. I think it goes back to the way people think; they just want the biggest piece of the pie instead of making the pie bigger. I do wish some of the major print magazines would concentrate on the races; just putting a racer on the cover would go a long way. But after talking to some of the magazines, I understand their position. The websites easily beat them to the coverage so it would just be repetitive. As a businessman I agree with them, but as a race fan I hate that truth. The best thing the media could do for the industry is to personalize the racers. The best way to attract a fan base is to give the fan something to relate to and follow. Take NASCAR for example. Very few people like just NASCAR, they all like their own racer whom they're rooting for. They feel connected to that racer and follow that racer-congratulations, you've just created a new fan. I've seen attempts to personalize the racers, but honestly, they haven't been very good. We do try to personalize our athletes in all our films. We show them off the track and always make sure to get headshots with helmets off so people will recognize them. The whole idea with Beating the Odds was to personalize the racer. But we're only one company; I wish more media outlets followed our lead. I'm certainly not calling anyone out because there are several magazines and websites that do a great job of this, I just wish it was more common.

ATVR: We certainly try to dig deep and promote the racers around here. What's the biggest issue, headache or political battle that befalls the video media world?

BP: Without a doubt, DVD burning and downloading. It's killing us! It has just become too easy and too accepted for people to rip DVDs and give them to their friends or download them illegally off the Internet. We actually had someone come up to Cale Downen at a GNC race and tell him that he liked Carpe Diem 3 so much he burned 10 copies and sold them to his friends for $10. It just amazes me that people are so comfortable with (stealing)! We've tried several methods to combat this to no avail. We tried encoding our disks with protection software, that didn't work; we tried a different, more expensive software, still didn't work. So now we've resorted to basically pleading with our customers not to burn or download the video. We put a PSA-style message at the beginning of Carpe Diem 4 informing the viewer that if the DVD pirating trend continues, there won't be a Carpe Diem 5. And we're serious. I love this sport, I love what I do, but I have bills to pay.

ATVR: Wow, DVD copying has that kind of impact on the ability to produce more films? Probably most uninformed people would think you were getting rich by making films. Do you consider pirating more of an issue than, say, the next up-and-coming ATV film producer?

BP: We're definitely not getting rich! If anything, the films serve as more of a loss-leader. DVD pirating is by far our biggest nightmare. We aren't concerned with up-and-coming film producers; we actually mentor some new filmmakers. We welcome new producers, it only helps to grow the sport and foster new ideas. In this market, most people will buy (or lately burn) more than one DVD in a year. The average consumer will purchase Carpe Diem 4 plus our competitors' DVDs.

ATVR: You graduated in business management and entrepreneurialism; do you feel like that direction has helped you in the ATV world? Or did it open up your eyes to the reality that the politics of our sport make it tough to find an original venue to pursue?

BP: I think more than anything it opened my eyes to the politics and to some of the corruption. To be honest, my education has turned me away from the sport slightly. It's very frustrating for me; I try to conduct myself ethically and professionally but that doesn't always seem to fit in this industry. I've always refused to change who I am or my moral fortitude just to sell my product; I think that has happened with some people. A lot of times I find myself banging my head against the wall, figuratively of course. The biggest impact on my life has been from my entrepreneurial success. I was the University of Iowa "poster child" for their entrepreneurial school, I was a top-10 finalist in the Global Student Entrepreneur Awards and have flown across the country talking about entrepreneurship. I even contributed to a globally released book on ethics in entrepreneurship (Student Entrepreneurs: Graduating with a Profit) and have had the opportunity to have dinner and discussions with the president of Mercedes-Benz Financial and the real Jimmy John (of Jimmy John's Sandwiches). It has definitely allowed me to look outside the box and outside the industry. Even now I have several other things going on besides Premis Industries. My heart is still with Premis, it's just not my only option.

A degree in business management and entrepreneurialism at the University of Iowa helped Phillips create a successful business as well as a name for himself.

ATVR: What's your take on the big factories stepping into the ATV game? Is there a changing of the guards, are the factories starting to realize the ATV market is being overlooked?

BP: I certainly welcome factory involvement; I think it's good for everyone. It has certainly taken part of the family-feel out of the nationals, but with growth comes some sacrifices. As long as the factories act responsibly and ethically in their decisions plus respect the "smaller" companies we will be fine. And they do a good job of that. I certainly wish I was still racing now. The factory involvement would've given me the push I needed. I still remember back when Tim Farr quit his job to race full time. There was a rumor going around that he was making $50,000 a year racing and everyone was amazed. The major factory salaries are well into the six-figures now (including win bonuses).

ATVR: Years ago you put the names Chad Wienen, Cale Downen and Sage Baker in front of thousands of people thanks to your Carpe Diem series. All three have excelled; Wienen nearly had the 2007 WPSA Championship after a lackluster 2006 season. Do you feel like backing these specific guys was luck? Or have you believed in them from the beginning?

BP: Don't forget Beating the Odds, too, they were three out of the four stars of that! We are very proud of their accomplishments, but I'd be lying if I said I was surprised. We know talent and dedication when we see it. I'd like to think our films gave them a little boost as well; it certainly helped them with sponsorships and their confidence. I've actually known Wienen for years. He only lives about 120 miles from me. I still remember when he first came to Hawkeye Downs in Cedar Rapids, Iowa, to race. He just blended in; I have watched him progress through the years and it has amazed me, he has so much drive. Same with Cale and Sage, unless you are a family member, good friend or fellow pro racer, you can't begin to understand what these guys have gone through to get where they are. During the 2006 season Sage left home in Shasta Lake City, California, in February and lived out of his modest 24-foot race trailer until September. That's dedication! You can really get a feel for what they go through in Beating the Odds. All three of them, as well as the other racers, have worked extremely hard to get where they are, and they all have my unwavering respect. But am I surprised? No. We knew they were future stars; otherwise we wouldn't have filmed with them.