American golf double value trade in

[Deleted member 18588]

your overlooking how much business has this deal taken from other stores / Pros. For example I was all set to get my new clubs in March (as its my 30th) and direct golf is attached to my range so was going to go there..

Then this AG came out they offered me £224 for my G15 pings, I thought hell I cant turn £100 because lets face it I would get £100 max for them in march.. and allowed me to get them earlier.. well convince the wife to let me.

Before this I spoke to my mate who runs a pro shop as he always says he can beat whatever AG do even if he makes bugger all just to "take a sale off them" so he could beat the iron price by about £60 however he would only give me £100 for the irons.. as he would need to sell them on.. so that was £64 more expensive than AG overall so said sorry mate ill go down AG.

So thats a sale gained for AG.. taken away from Direct Golf / Another local pro shop

Then I decided to sell a lot of old model trains that I had in my mums garage from when I was into that. Sold the lot on ebay for about £500. So decided hmm the M2 driver is very nice.. how much will they give me for my R15 (which I bought for £175 off them in jan) I got £100 for it and Parted with £179 cash for the M2.. just because really.. Didnt overly need it and if wasnt for this offer would never have upgraded

I can't be the only person whos bought clubs just because of this offer

I haven't overlooked it. I have ignored it.

Business is about profit not turnover and in view of AG's dominant position in the market it is hard to see what is to be gained by this promotion.

Reminiscent of the Hoover (I believe) free-flights offer which backfired spectacularly a few years ago.

 

[PJ87]

I haven't overlooked it. I have ignored it.

Business is about profit not turnover and in view of AG's dominant position in the market it is hard to see what is to be gained by this promotion.

Reminiscent of the Hoover (I believe) free-flights offer which backfired spectacularly a few years ago.

It cant be ignored though because stealing business from other sources puts them under pressure

Finding it hard to find at the moment but I seem to remember AG offered trade in offer of 10% over the market value of what your club is worth on the PGA website so they always been paying over the odds they just look set to be squeezing the comp further

 

[Deleted member 18588]

It cant be ignored though because stealing business from other sources puts them under pressure

Finding it hard to find at the moment but I seem to remember AG offered trade in offer of 10% over the market value of what your club is worth on the PGA website so they always been paying over the odds they just look set to be squeezing the comp further

Better off not opening your shop than open it and sell at a loss or too narrow a margin. Stealing business (as you call it) in this way puts AG under as much, if not more, pressure than their competitors.

Who is it that you think they are squeezing out? If he chooses to fight Mike Ashley would see them off and club pro's who have survived this long will continue.

 

[PJ87]

Better off not opening your shop than open it and sell at a loss or too narrow a margin. Stealing business (as you call it) in this way puts AG under as much, if not more, pressure than their competitors.

Who is it that you think they are squeezing out? If he chooses to fight Mike Ashley would see them off and club pro's who have survived this long will continue.

I know my mates shop stays in business but the rise of AG has made it harder and harder for his commission on the profits of the shop

AG are a massive player in the market and there is more to this move than meets the eye they wont have just offered this for a laugh

 

[Deleted member 18588]

I know my mates shop stays in business but the rise of AG has made it harder and harder for his commission on the profits of the shop

AG are a massive player in the market and there is more to this move than meets the eye they wont have just offered this for a laugh

You may be right but they certainly would not be the first to get into difficulties as a result of an ill-conceived marketing campaign.

The guys that I know who work for them and know what the margins are on new equipment and also know what they are likely to get for the secondhand kit just cannot see how this can work.

 

[Papas1982]

I don't think AG are losing anything with this prom.

Id imagine most of the clubs they've taken in they will sell for about evens. So with a little extra, some a little less.

They're recent sales will have sky rocketed though and its the new clubs where they make their biggest margins. I recently did customs paperwork for a pro shop and they were getting the vokeys at £75. Now i'd imagine AG get at least as good a rate and their initial rrp was like £130. So if its similar along all new clubs. They'll have been making money hand over fist.

 

[Deleted member 18588]

I don't think AG are losing anything with this prom.

Id imagine most of the clubs they've taken in they will sell for about evens. So with a little extra, some a little less.

They're recent sales will have sky rocketed though and its the new clubs where they make their biggest margins. I recently did customs paperwork for a pro shop and they were getting the vokeys at £75. Now i'd imagine AG get at least as good a rate and their initial rrp was like £130. So if its similar along all new clubs. They'll have been making money hand over fist.

Why would anyone pay AG twice the "trade-in" price for secondhand kit, much of which when I have seen it at their stores is virtually unsellable and would be competing with their lower end new stock on which they have a greater mark up?

 

[shivas irons]

I don't think AG are losing anything with this prom.

Id imagine most of the clubs they've taken in they will sell for about evens. So with a little extra, some a little less.

They're recent sales will have sky rocketed though and its the new clubs where they make their biggest margins. I recently did customs paperwork for a pro shop and they were getting the vokeys at £75. Now i'd imagine AG get at least as good a rate and their initial rrp was like £130. So if its similar along all new clubs. They'll have been making money hand over fist.

Guy at my local AG says its been so successful that he thinks AG will run the promotion longer,they are defo making money out of this.

 

[Papas1982]

You may be right but they certainly would not be the first to get into difficulties as a result of an ill-conceived marketing campaign.

The guys that I know who work for them and know what the margins are on new equipment and also know what they are likely to get for the secondhand kit just cannot see how this can work.

Had this discussion a while back. With the greatest respect to people that work in the shops. They are generally just staff, not the guys behind the ideas.

There have been lots of folk on here decalring how happy they are that they have purshased this or that at such and such a cost to them. The majority of them come across as purchases that poepl ehad no intention of od doing before the offer. I dont think they will make a loss in the slightest. If for example, when someone gets £300 for a set of their irons and "only pays" £200 extra for a new set. I'd imagine AG can sell the second hand set for £250 at least. On a new set of itons retailing at £500 i bet their profit margin is more than £50. So they will still make a profit. Any profit is good. I agree turnover is irrelevent, but all big shops use loss leaders at times and i'd hazrad a guess that on the few occasions ag make a loss on a set, they more than make up for it.

The fact that the end sate seems to be extending suggests they are loving the new deal.

 

[Papas1982]

Why would anyone pay AG twice the "trade-in" price for secondhand kit, much of which when I have seen it at their stores is virtually unsellable and would be competing with their lower end new stock on which they have a greater mark up?

It's nowhere near the real double value price though. Not if you actually use real usd to gbp exchange business rates. They are knocking close to 20% off all the offers. PLus, this time most years they will of had sales on and been selling stock at lower prices and having tighter margins. This year stock is holding value whilst they sell it off before all of the new seasons stock is released. As has been mentioned. Why extend an unsuccessful idea?

Just last week i bought some titleist 704cb for £40 which the guy had bought the week before from AG for £140. Still had sale date stickers on. I then got £125 from AG for them. So they've got them for less then they'll likely resell em for. PLus i oaid top price for my new gear. Imo, its win for all those lucky enough to be able to afford new gear.

 

[Deleted member 18588]

Had this discussion a while back. With the greatest respect to people that work in the shops. They are generally just staff, not the guys behind the ideas.

There have been lots of folk on here decalring how happy they are that they have purshased this or that at such and such a cost to them. The majority of them come across as purchases that poepl ehad no intention of od doing before the offer. I dont think they will make a loss in the slightest. If for example, when someone gets £300 for a set of their irons and "only pays" £200 extra for a new set. I'd imagine AG can sell the second hand set for £250 at least. On a new set of itons retailing at £500 i bet their profit margin is more than £50. So they will still make a profit. Any profit is good. I agree turnover is irrelevent, but all big shops use loss leaders at times and i'd hazrad a guess that on the few occasions ag make a loss on a set, they more than make up for it.

The fact that the end sate seems to be extending suggests they are loving the new deal.

Sorry but IMO you are over estimating the potential price of the second hand kit, particularly as there will be so much supply but unlikely to be matched by an increase in demand.

As for "the guys behind the ideas" as I have said plenty of examples of marketing departments getting it wrong.

Also "any profit is good" is not entirely accurate, gross profit has to more than cover all costs to be relevant.

 

[PJ87]

Sorry but IMO you are over estimating the potential price of the second hand kit, particularly as there will be so much supply but unlikely to be matched by an increase in demand.

As for "the guys behind the ideas" as I have said plenty of examples of marketing departments getting it wrong.

Also "any profit is good" is not entirely accurate, gross profit has to more than cover all costs to be relevant.

their are plenty of people who will only buy second hand clubs because of costs.. so these people will suddenly have more choice in AG cornering the market with direct golf no longer offering second hand (after their stock is gone as they dont buy anymore)

then you got the theory that was put forward a few weeks ago that since the olympics their has been a rise in interest in golf in developing countries and rumours are AG are going to target their nations with the clubs

if so great business

they were offering 50% more trade in the month before this offer so a set of irons worth £100 would be £150 etc etc.. so must be something in it

 

[Papas1982]

Sorry but IMO you are over estimating the potential price of the second hand kit, particularly as there will be so much supply but unlikely to be matched by an increase in demand.

As for "the guys behind the ideas" as I have said plenty of examples of marketing departments getting it wrong.

Also "any profit is good" is not entirely accurate, gross profit has to more than cover all costs to be relevant.

That's a fair point. But if you are increasing sales, which they clearly are. Then selling them all at above what you pay is going to increase your profit. Better to sell 20 clubs and make £10 on each than sell 5 and make £30.

I agree marketing ideas can go wrong, but i fail to see why they would apparently extend the deal if it wasn't working.

Re resale prices, I'm not expecting them to set the world alight. But imo, making a loss of 10% on a part ex resale value will be swallowed up by the fact that they have sold end of season clubs at very little reduction. And tbf Ag and others such as golfbidder have always sold secondhand for more than places like Ebay.

Only time will tell, but to me it looks a great strategy as i'd imagine all their competitors have had lesser sales this last month or two. Increasing their market share will look good to them.

 

[Deleted member 16999]

Using the PGA site and clubs I traded in (Mizuno JPX EZ Forged 2013) I took £240.00, which was the middle price, doubled, at the time, the resale tab on the same PGA site gives a resale value of £370.00, I happily accepted 1.5 £ to $, but I would think when they sell on they would be more likely to use the actual exchange rate of approx 1.22, therefore making nearly 30 cents on every pound.

 

[Marshy77]

Had this discussion a while back. With the greatest respect to people that work in the shops. They are generally just staff, not the guys behind the ideas.

There have been lots of folk on here decalring how happy they are that they have purshased this or that at such and such a cost to them. The majority of them come across as purchases that poepl ehad no intention of od doing before the offer. I dont think they will make a loss in the slightest. If for example, when someone gets £300 for a set of their irons and "only pays" £200 extra for a new set. I'd imagine AG can sell the second hand set for £250 at least. On a new set of itons retailing at £500 i bet their profit margin is more than £50. So they will still make a profit. Any profit is good. I agree turnover is irrelevent, but all big shops use loss leaders at times and i'd hazrad a guess that on the few occasions ag make a loss on a set, they more than make up for it.

The fact that the end sate seems to be extending suggests they are loving the new deal.

but there not going to get £244 for a set of G15 irons like in the example earlier. I paid £150 for my G15's 18 months ago from AG, they'd be lucky to sell them for £120 now so make a loss of £120 on that set, obviously you can offset some of that against what the customer paid extra for the new gear but I'm struggling to see how they will make a profit on a large % of these trade in deals.

 

[Deleted member 18588]

That's a fair point. But if you are increasing sales, which they clearly are. Then selling them all at above what you pay is going to increase your profit. Better to sell 20 clubs and make £10 on each than sell 5 and make £30.

I agree marketing ideas can go wrong, but i fail to see why they would apparently extend the deal if it wasn't working.

Re resale prices, I'm not expecting them to set the world alight. But imo, making a loss of 10% on a part ex resale value will be swallowed up by the fact that they have sold end of season clubs at very little reduction. And tbf Ag and others such as golfbidder have always sold secondhand for more than places like Ebay.

Only time will tell, but to me it looks a great strategy as i'd imagine all their competitors have had lesser sales this last month or two. Increasing their market share will look good to them.

Throughout this thread one thing seems pretty consistent.

Different stores have different understandings of how the promotion works. This smacks to me of a company whose management is perhaps not all it might be and if that is the case at the sharp end not too much confidence in those higher up the chain.

As I keep saying market share is nowhere near as important as margins.

 

[Deleted member 16999]

but there not going to get £244 for a set of G15 irons like in the example earlier. I paid £150 for my G15's 18 months ago from AG, they'd be lucky to sell them for £120 now so make a loss of £120 on that set, obviously you can offset some of that against what the customer paid extra for the new gear but I'm struggling to see how they will make a profit on a large % of these trade in deals.

On the PGA website the selling price at current exchange for G15 in medium condition is £207.00, so depends on the buyer.

 

[harpo_72]

There were a few posts on here that stated the trade in value had dropped. I also saw that but they honoured the original valuation.
So I think certain brands have lost a lot of value, others not so. The market now has been flooded with kit. Which is great for new starters, and golf bidders stock may well have been devalued as a consequence....
The last statement though is speculation, so don't get upset please.

 

[Papas1982]

Throughout this thread one thing seems pretty consistent.

Different stores have different understandings of how the promotion works. This smacks to me of a company whose management is perhaps not all it might be and if that is the case at the sharp end not too much confidence in those higher up the chain.

As I keep saying market share is nowhere near as important as margins.

There was a member on here who was in the pr team and had some responsibility for this deal. He actively contacted some of us and our stores when we had issues as he says the training has been clear. Store managers IMO don't need to have a business mind. They simply need to cash up tills and follow procedures. I think their competence doesn't really matter as far as business strategy is concerned.

All retail businesses at the at the top end have good p, bad and indifferent t management teams.

 

[Papas1982]

but there not going to get £244 for a set of G15 irons like in the example earlier. I paid £150 for my G15's 18 months ago from AG, they'd be lucky to sell them for £120 now so make a loss of £120 on that set, obviously you can offset some of that against what the customer paid extra for the new gear but I'm struggling to see how they will make a profit on a large % of these trade in deals.

i guess it depends how many deals have been in such significant favour as yours.

Id expect to read about more success stories on here as there's been lots of communications and we're all looking for bargains.

Im sure they're also lots of people who have simply seen doublevalue. Rushed in and bought need goods that worked in ags favour too.

Imo it's win win. But if it goes wrong for ag the. Just e will be some brilliant deals to be had if they're in liquidation.