This is a cool thread. lots of good ideas. Here's my thoughts - as an kind of average racer who pays his own way through the nationals.
I know that i don't have the talent of the top guys, I'm out there for the fun and enjoyment of the sport. I spend pretty much all of my spare cash and more on my bike racing because to me it what I enjoy, even if i do end up running at the back of the field.
I started racing 600s last year on a 2005 bike. Kit parts on the engine, a 99 ohlins rear shock and standard front.
1st big improvement was getting RT to get the correct spring rate in the rear shock for me. This made a huge improvement. Also bought a slightly different rate spring for the tracks down south. Why? because the better spring would make the tyres last longer! If a correct spring could save me 1 rear tyre over the course of the nationals - it's paid for itself.
Next big thing was the standard front wasn't up to pushing it at levels. While down there I hit a bump in the track while cornering and it just couldn't cope. just washed out - and i wasn't going anywhere near as the fast as the front runners. Would aftermarket suspension have helped up front? I think so. And it would have saved me $$$ in repair bill (new subframe, new arrow exhaust mid-pipe, fairing repair etc....)
2nd thing was the addition of ohlins springs up front. which helped, then the addition of a ohlins UES (total cost ~$1000) which helped even more (Thanks Kerry). but since i had that crash at manfeild I couldn't really benefit from that much.
What was the biggest cost of running the nationals for me? tyres. by a long way. accomodation down south I stayed at family/friends/campsites and had a ball. so if the aim of the game is to get the cost down, then please allow aftermarket suspension tweaks - I really think it did/would have saved me money. After tyres the next big cost is paying for travel and track time (which leads to needing more tyres

), the actual cost of the bike itself hasn't been the limiting factor for me.
Oh, and i'm one of the lucky ones who's bought a Dave C bike with lots of nice bits on. I know the bike is more than capable of running at the front, the only thing slowing it down is the rider - but I'm there to learn and above all - have fun! I have much more fun on a bike I have confidence in, than pushing a bog stock bike to or past it's limits

I have the choice of getting a new bike and paying $$$ to develop it, or just running with what someone else had put the time and money into. The work these guys do will filter down to the rest of the field.
As for getting newer riders into the class. start on a year or 2 old bike with the nice parts added. My old bike with a talented rider on board would be capable of running in the 1:10's - 1:11's at manfeild. Ok you might not quite win, but you'd be up there. Price $10k, I've sunk the money into the bike - someone else could take advantage of it. Or get a new bike and leave it stock. It'll still be there or there abouts in terms of speed, but you will find that in the long term replacing OEM parts with decent aftermarket stuff does save money. Buy that and spend your money on tyres and track time and improve yourself as a rider.
The 600SP rules over here isn't a million miles from stock and it appears to work. Lets leave it that way. It's certainly more affordable than the aussie supersport spec machines.
And above all lets not take anything away from the handful of guys who get out there and race and have talent. Craig, Dennis, Andrew, Jay, James etc. have all showed what's possible and it's not all down to $$$. These guys have serious skill and deserve to be at the front. If you want to be as fast as these fellas, then it will cost you. but mainly in hard work and commitment.
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