Located at the southern edge of the Rocky Mountains, Red River, N.M., bills itself as “a ski vacation paradise, summer vacation heaven, conference center and resort town all rolled into one.” Tourists are clearly a big part of the town’s economy, and the public transportation system to move them around town is equally important.

Each year approximately 17,000 people ride the two Red River Miner’s Transit buses as they loop around town. About half of the riders use free-ride tokens, which are supplied to area lodges, inns, motels and bed-and-breakfasts.

“The community charges a lodger’s tax,” says Bob Perry, Red River planning director. “We use the funds to offset the costs of the transportation system. We provide free tokens to lodges and hotels, bed-and-breakfasts, and others because we do not want to double charge their patrons for a service that they’ve already paid for.” The free tokens also serve as a barometer for the mass transit usage. “We collect the tokens from the farebox and compare tokens to cash. In the height of tourist season it is probably a 50-50 split between riders who pay cash and riders who use tokens,” continues Perry.

Shared Funding Reduces Out-of-Pocket Costs
Out-of-pocket costs for the tokens were minimal because funding was available from multiple sources. In addition to the lodger’s tax, which provided about one-half of the cost, federal funds were also available on a matching program. When accounting for all of the various funding sources, Perry estimates that his out-of-pocket costs for the purchase of the 50,000 tokens are minimal. Sized between a nickel and a quarter, the tokens are “just the right size.”

Because the tokens last for decades, they can be used many times before they wear out. Durability is not the issue in Red River, however. “The tokens are a beautiful bright gold color and have “The Town of Red River” stamped on one side. People carry them home with pocket change to remind them of their trip,” says Perry.

Although the online vendor, TokensDirect, offered many standard designs, Perry elected to have a custom die made for the token front. A standard design including an eagle and stars adorns the reverse side of the token, to elicit a patriotic feel. When stockpiles run low, Perry figures he’ll switch to a custom die for the reverse, harkening back to the town’s origin as a mining community, and promoting a nostalgic feel. It will also help to explain how Miner’s Transit got its name.

More Than a Token Opportunity for Retailers
In addition to providing tokens on a no-charge basis to lodging establishments, they are also available for sale to local merchants. “We package them in bags of 100 tokens, and sell them for $35.00 per hundred,” comments Perry. Retailers can then provide the tokens with change, make them available on counter displays or use them as incentives to stimulate store traffic.