26 September 2011 / #fairs Ferris-o-nomics: Where the money you spend at the fair actually goes[  ](http://www.flickr.com/photos/ottawastart/5698040762/) Photo by [ Glen Gower ](http://www.flickr.com/photos/ottawastart/5698040762/in/set-72157626670404988) I am fascinated by fairs. By the technology and electronics and engineering, by the clash between family fun and all the dirt and grime of a travelling carnival. How do those giant rides fold up into those tiny little trailers? And who paints all those bizarre murals anyways?And then there’s the economics of running a fair. I was curious about the overhead costs for a fair. If you have a full ferris wheel (24 riders), each paying $5 per ride, how much profit does that actually mean for the ride operator?Not much, according to Chris Clarke from Classic Amusements . He shared some financials with me yesterday. For every dollar you spend on a ticket, these are his costs – which he says are typical of any amusement ride operator: * $0.25 goes the festival or fair as a form of rent payment * $0.15 goes to diesel fuel for generator power * $0.05 goes to trucking, federal fuel taxes * $0.07 goes to TSSA (provincial government inspection) * $0.04 goes to Electrical Safety Authority (provincial government inspection) * $0.07 goes to MTO for licensing and commercial inspections (more provincial government) * $0.10 goes to labor, weekly payroll for operators, truck drivers and mechanics * $0.13 goes to insurance (includes general liability, property and auto) * $0.04 goes into ride maintenance and upkeep Leaving 10 cents per dollar in profit.So, if that full ferris wheel has 24 riders, each paying $5, the operator makes $120, which comes out to about $12 after expenses per full ride. It’s a better return than playing a carney game, but not enough to make me run off and join the carnival.** See also: ** Ottawa Fairs GuideIf you liked this post, please consider subscribing to our blog via email, Twitter, Facebook or RSS. Thank you.