Economic Impact on Gear manufacturers

[GB72]

The talk on the post about the new Taylormade R9 driver has moved towards its excessive price and how many of these they will sell in the current market.

To me it seems mad releasing such high priced items in the current global recession but would be intrigued to hear what others think.

Might now be the time that people start lookiking at the cheaper brands to keep down the cost of gear purchases and might the likes of MD, Benross etc start seeing an increase in market share? Might the new releases be a total flop this year as golfers look for bargains on last year's kit? Might we actually start to hear about golf companies in financial difficulty with redundancies or even closures?

Certainly the only kit that has caught my eye this year has been at the cheaper end of the market and the only driver that is tempting is the new MD or the Cleveland Launcher at a more reasonable £175.00 now.

 

[HomerJSimpson]

I think the thing with R9's etc is that the budget for these clubs will have been agreed and accounted for three, four or even five years ago to incorporate R&D, manufacturing set up and promotional cost. There may be a significant impact on overall operating profits if the R9 bombs because people don't buy it but:

1) People will buy it because it is a new step forward in creating your own club sey up with the changes poosible to loft and lie

2) For some money is no object and so will buy because they can

3) Some are TM devotees and so will buy out of brand loyalty and a desire to be at the forefront of TM equipment.

4) There is the "all the gear no idea" (Japanese, Far East, Ian Poulter lookalike golfers - we've all seen them!) who simply have to buy the newest most expensive club but don't really know one end from the other.

I think TM made a serious error introducing an 09 Burner when the 08 are still in the shops and for a the most part still displayed at close to original price. To my mind there isn't a huge amount to choose between the two and it smacks of either desperation to get as much cash in as possible or perhaps even worse a poor understanding of their share of the market to even need a newer model of the same club.

 

[madandra]

I would love to see TM and others reduce their playing staff numbers to show us the everyday golfer that our financial concerns are being heard and they are reducing prices accordingly.

I am also a bit cynical as to what improvement the new drivers being released will do for me or any other club golfer. Will a new £400 driver be an improvement on my G10?

I remember having this discussion with Boabski, Psychojoe and Frasting on the way back from the Glen and I asked them where can 3 wood technology go because there will never be a need to hit a 3wood 250+ yards so what can the new bread bring to the table that will encourage us to part with a few hundred quid?????????

 

[GB72]

Personally I would like to see the big name manufacturers release their own budget ranges, perhaps selling last years model under at a low price under a separate budget label.

That would at least give a choice to the average golfer between the most up to date kit at a higher price or last year's model at a cut price. I know that you can buy older gear at low prices but that is always restricted by stock levels so the most popular specs are often sold out.

 

[ademac]

1)

2) For some money is no object and so will buy because they can

This seems about right for the extortunate price. "Golf is the game of kings" or so it would seem. I do think though that when new gear is released it is released to the highest end of the market(and why not!) We all know that in 6 months time it willbe half price!

 

[RGuk]

Is the economic situation so bad that it will affect the golfing millions?.....I doubt it.

It's a scary time just now, folks losing their jobs, "middle-income" families regretting extending themselves too far (although Mortgages are cheap IF you still have your job) etc.etc.

My club is neither posh nor the starting place for the seriously cash-strapped....around here, the credit crunch doesn't exist.....most people are on one side of the fence, either the haves or have-nots. Those that "have" aren't going to change in the excessive spending that has fueled the whole darn business.

I just feel desperately for those finding themselves on the wrong side of the fence through no fault.....but that's for another forum....

 

[USER1999]

Interestingly, Titleist, for a long time the bastion of v. expensive clubs, has launched the 909 drivers at less than the previous 907's. A 909D2 with an Aldila Voodoo shaft for £227 is a good deal, compared to TM's latest offering. Even the DComp (which I suppose is the more comparable, being graphite crowned) is £270.

 

[ricardodaintino]

where can 3 wood technology go because there will never be a need to hit a 3wood 250+ yards so what can the new bread bring to the table that will encourage us to part with a few hundred quid?????????

Wilson Staff have the fybrid fairways which I think are brilliant. This year Wilson are releasing the spine fairways. I think this is their answer to your question!

They will not be any better then the fybrids IMO but alot of golfers who have the spine driver will get that cold sweat for matching fairway woods, and Wilson make their money that way.

 

[Cernunnos]

We all like quality gear, but I for one certainly don't want to be paying silly money for quality gear.

Companies that can design, produce & promote quality at the right price are going to sell gear in this economic climate. Those manufacturers who can't understand this will not.

 

[jeffc]

Personally I would like to see the big name manufacturers release their own budget ranges, perhaps selling last years model under at a low price under a separate budget label.

I would say they don't have to have a budget label - so far I have bought the following which are being superscede by newer bling; MX560 at £99, Wilson Staff Di7's £210, Mizuno RAW haze 53* Wedge £29.99

I did try the latest Mizuno MX200's and the Wilson Staff Di9's, only difference between them and the Di7's was £200

 

[ricardodaintino]

As a di7 set owner, I'm quite pleased to hear that. I actually prefer the looks on the Di7s too, more classey, less flashey.

 

[GB72]

Personally I would like to see the big name manufacturers release their own budget ranges, perhaps selling last years model under at a low price under a separate budget label.

I would say they don't have to have a budget label - so far I have bought the following which are being superscede by newer bling; MX560 at £99, Wilson Staff Di7's £210, Mizuno RAW haze 53* Wedge £29.99

I did try the latest Mizuno MX200's and the Wilson Staff Di9's, only difference between them and the Di7's was £200

The thing is that the most popular specs of last year's kit run out. If the company kept producing the gear but sold it at a budget price it would provide a revenue stream with no need for further set up costs and little need for marketing. It is common practice in the entertainment industry (especially computer games) to re-brand older products under a budget label and sell them at half price so why not with golf gear. Companies make nothing from the second hand market so this could be a way of attracting bargain hunters into buying new kit.

 

[SammmeBee]

Companies make nothing from the second hand market so this could be a way of attracting bargain hunters into buying new kit.

Doesn't someone have to buy it first so that it can become second hand kit?

TBH once they have sold it to the Golf Pro or Retailer, the job is done and it is of little consequence to them if they sell out or are left with any.....

 

[SS2]

If the current financial climate has one lasting legacy, I hope that legacy is that people do not automatically assume that something new is better in every way than something slightly older.

 

[Parmo]

My example is Titleist, how many tour players or journey men do they supply 1000's of Pro vee's to a year each? It just seems extreme and not supprising the price of their balls, even the NXT priced at £21 mark is a lot when they are the same as an AD333 which can be bought for £13.

 

[HomerJSimpson]

Look how many balls they supply at the Open each year solely to be hit on the range.

 

[SammmeBee]

Yes but golfers are a fickle bunch and would explain why Titleist is and has been the best selling ball in the world for many years...

I think you also have to look that many manufacturers are based on the world (mainly America) demand and what they sell in the UK, indeed in Europe as a whole, is merely chicken feed....and in the general whole worldwide scheme of things what we want and expect here means very little....

 

[USER1999]

The 1000's of balls titleist supply for the open, probably costs them about £4.50. We are used to looking at the retail price, in it's fancy packaging.

 

[USER1999]

Ditto for the clubs the pro's use. For a major brand to equip a pro probably isn't that expensive. A few free hats, some balls, some sticks made in China for naff all. It is only if the pro gets to be successful enough to want paying, and then also wants custom grinds etc, that the cost starts to mount.

 

[StuartD]

If the current financial climate has one lasting legacy, I hope that legacy is that people do not automatically assume that something new is better in every way than something slightly older.

I fall into this. After StuartD jnr was born i have not had the cash to buy a new driver. Got a G2 off my Dad and i am more than happy with it. Probably would not have looked at it otherwise