American golf double value trade in

[Deleted member 18588]

Plus they are still selling clubs at new prices.

Unless people ask ask for price match. A lot of their prices are 10/15% more than rivals. So they are maximising the profit on each sale.

For them to to continually extend the offer and now put it on to stock makes me think it's obviously working for them.

But as that "new price" only includes a gross margin of approx 30% they are unlikely to show any return on a deal where they have effectively overpaid on the trade-in.

Think of all the overheads they have to meet out of that 30%.

Also, having visited several stores I can only suggest that it might be beneficial to them to learn how to market secondhand clubs. Those I have seen have all looked in need of a good clean and there has been no "product promotion" of the used stock.

 

[shivas irons]

Dont know what there strategy is with these secondhand club deals but crazy trade ins and like you say not bothering to clean the used stock beggars belief

 

[Papas1982]

But as that "new price" only includes a gross margin of approx 30% they are unlikely to show any return on a deal where they have effectively overpaid on the trade-in.

Think of all the overheads they have to meet out of that 30%.

Also, having visited several stores I can only suggest that it might be beneficial to them to learn how to market secondhand clubs. Those I have seen have all looked in need of a good clean and there has been no "product promotion" of the used stock.

Having imported quite a few clubs for pro shops. Some certainly have more than a 30% mark up.

My view on it is that they are able to sell most of the clubs involving trade in at a higher price than they would be if they were having a sale on to generate extra business.

Also, whilst we all hear agree they are paying a lot for second hand clubs. I'm yet to find a club on golfbidder that was worth purchasing to use in the exchange. So if golfbidder can run as a business selling at those prices. American golf must belive that they can recoup most of the exchange money.

 

[PJ87]

Having imported quite a few clubs for pro shops. Some certainly have more than a 30% mark up.

My view on it is that they are able to sell most of the clubs involving trade in at a higher price than they would be if they were having a sale on to generate extra business.

Also, whilst we all hear agree they are paying a lot for second hand clubs. I'm yet to find a club on golfbidder that was worth purchasing to use in the exchange. So if golfbidder can run as a business selling at those prices. American golf must belive that they can recoup most of the exchange money.

at worst if they need to shift some stock I am sure they can sell them onto golf bidder lol let them sell them all on

least get some of their money back

 

[Deleted member 18588]

Having imported quite a few clubs for pro shops. Some certainly have more than a 30% mark up.

My view on it is that they are able to sell most of the clubs involving trade in at a higher price than they would be if they were having a sale on to generate extra business.

Also, whilst we all hear agree they are paying a lot for second hand clubs. I'm yet to find a club on golfbidder that was worth purchasing to use in the exchange. So if golfbidder can run as a business selling at those prices. American golf must belive that they can recoup most of the exchange money.

Mark up generally 30% these days.

As for selling against golfbidder my experience suggests that the latter know what they are doing in the secondhand market whereas AG haven't got a clue. No surprise really as all their experience has been in the new club market.

Based upon what many on here are claiming to have received for second hand kit I would suggest that AG have not got a hope in hell of recouping their costs.

 

[Deleted member 18588]

at worst if they need to shift some stock I am sure they can sell them onto golf bidder lol let them sell them all on

least get some of their money back

And golfbidder would know that they had AG over a barrel so what do you think they would pay for this surplus stock.

 

[Papas1982]

Mark up generally 30% these days.

As for selling against golfbidder my experience suggests that the latter know what they are doing in the secondhand market whereas AG haven't got a clue. No surprise really as all their experience has been in the new club market.

Based upon what many on here are claiming to have received for second hand kit I would suggest that AG have not got a hope in hell of recouping their costs.

Inthink some of the older stock may be difficult to shift. But, I've not gotten more money for any of the clubs from American golf, that golfbidder are currently selling em for.

I dont think theyll make much much profit on the second hand clubs, but I think they'll not lose a high percentage either. And their sales will have skyrocketed. So if they're only making 15/20% instead of the usual 30% the extra sales and money they've kept away from competitors will be benificial.

Fully agree they they need to find a better way to sell second hand thiugh.

 

[Deleted member 18588]

Inthink some of the older stock may be difficult to shift. But, I've not gotten more money for any of the clubs from American golf, that golfbidder are currently selling em for.

I dont think theyll make much much profit on the second hand clubs, but I think they'll not lose a high percentage either. And their sales will have skyrocketed. So if they're only making 15/20% instead of the usual 30% the extra sales and money they've kept away from competitors will be benificial.

Fully agree they they need to find a better way to sell second hand thiugh.

As I previously said on this thread "Turnover is for show, profit is for dough!"

If their gross margin is reduced to 15% to 20% (and I think that is optimistic) then that is a business model that is not sustainable.

 

[harpo_72]

Where did the 30% come from? I suspect it's far greater with their buying power. Also the stock levels they hold and return etc..

 

[Imurg]

And that 15-20% may be optimistic given the condition of some of the traded in clubs..
They haven't, generally, paid out substantially less than the guide price .
Take a set of AP2 710. 4-PW. AG would give £245. Golfbidder are selling for £250 in fair condition.
Clubs traded into AG need to be pretty good condition to turn a profit.

 

[Papas1982]

As I previously said on this thread "Turnover is for show, profit is for dough!"

If their gross margin is reduced to 15% to 20% (and I think that is optimistic) then that is a business model that is not sustainable.

Where did I say it was only going to increase turnover.

Theyll have fixed overheads and I doubt staff or delivery costs would have gone up much with increased sales.

If they sell 500clubs with a 20% mark up. It will be better than 200 with a 30% mark up.

So turnover will have gone up, but so will their profit.

We we can all guesstimate what they're tactics are, but they are showing no signs of stopping the offer. So they believe it right.

taglines are all well and good. But I know lot s of people that are great putters (shame they take 8 to get to a green).

 

[Deleted member 18588]

Where did the 30% come from? I suspect it's far greater with their buying power. Also the stock levels they hold and return etc..

In the UK they are a giant, in the golf industry as a whole they are not due to the relatively small size of the market in this country compared with USA or Japan.

 

[Papas1982]

And that 15-20% may be optimistic given the condition of some of the traded in clubs..
They haven't, generally, paid out substantially less than the guide price .
Take a set of AP2 710. 4-PW. AG would give £245. Golfbidder are selling for £250 in fair condition.
Clubs traded into AG need to be pretty good condition to turn a profit.

Again, totally depends on what was purchased with the trade in. If it's enabled them to get maximum price for a club they'd usually reduce this year. Then the overall profit could be better even if they sold the club second hand for less.

 

[Deleted member 18588]

Where did I say it was only going to increase turnover.

Theyll have fixed overheads and I doubt staff or delivery costs would have gone up much with increased sales.

If they sell 500clubs with a 20% mark up. It will be better than 200 with a 30% mark up.

So turnover will have gone up, but so will their profit.

We we can all guesstimate what they're tactics are, but they are showing no signs of stopping the offer. So they believe it right.

taglines are all well and good. But I know lot s of people that are great putters (shame they take 8 to get to a green).

As I say the margin is not likely to be anything like 20% with the losses on the secondhand sales.

Take Imurg's example. If AG allow £245 on a set that has a retail value of £250 it would appear that there is a profit of £5. However that £250 would have to include VAT so nett sale price approx £206.

 

[Papas1982]

As I say the margin is not likely to be anything like 20% with the losses on the secondhand sales.

Take Imurg's example. If AG allow £245 on a set that has a retail value of £250 it would appear that there is a profit of £5. However that £250 would have to include VAT so nett sale price approx £206.

Ill hold my hands up and admit I completely neglected vat.

oh well. Better buy some more clubs before they go bust!

 

[shivas irons]

As I say the margin is not likely to be anything like 20% with the losses on the secondhand sales.

Take Imurg's example. If AG allow £245 on a set that has a retail value of £250 it would appear that there is a profit of £5. However that £250 would have to include VAT so nett sale price approx £206.

Theres no way the retail prices you are quoting would be AG's, Golfbidder maybe but not AG's.I was told by a manager that the tag price on the trade in gear is half the trade in they gave,they are litteraly not selling it anywhere near what they gave for it.

 

[PJ87]

And golfbidder would know that they had AG over a barrel so what do you think they would pay for this surplus stock.

not like they are going to sell to them under their name.. they would use their employees to sell them probably

 

[Deleted member 18588]

not like they are going to sell to them under their name.. they would use their employees to sell them probably

I am sorry but that makes absolutely no sense.

How many members of staff do you think they have? And where do you think they would sell hundreds o sets of irons? Car boot? Down the pub? ebay?

AG have 100 branches and if each of them had say ten sets to shift that would be 1000 sets of secondhand kit and by the sound of things on here that may be a modest estimate.

 

[JakeWS]

I am sorry but that makes absolutely no sense.

How many members of staff do you think they have? And where do you think they would sell hundreds o sets of irons? Car boot? Down the pub? ebay?

AG have 100 branches and if each of them had say ten sets to shift that would be 1000 sets of secondhand kit and by the sound of things on here that may be a modest estimate.

I've traded in 11 sets so very modest haha.

 

[Cherry13]

Traded in my mizuno MP 60 set for £95 and got a set of titleist AP1. Tried out the AP2, G iron, Mizuno 900 and the JPX EZ. Took me 3 visits and about 2 hours on the range to make my decision. Was very close between the ap1 and g iron.

Just out of interest how good is the AG fitting process? Everything for me just came back regular and standard.