Equipment price drops!

[delc]

I note that a set of Taylor Made irons I paid the best part of £500 for about 18 months ago, are now in the American Golf sale for less than £200 new! Of course, their latest equivalent model, which probably performs no better, is on sale for more than £500. Assuming that AG are still making a profit on their old stock, this probably shows how overpriced golf equipment is!

A friend of mine who has relatives living in the USA says that he can generally buy equipment over there for the same price in Dollars as we pay in Pounds. Makes you wonder why Bridgestone are pulling out of the U.K. market! :mmm:

 

[User20205]

I note that a set of Taylor Made irons I paid the best part of £500 for about 18 months ago, are now in the American Golf sale for less than £200 new! Of course, their latest equivalent model, which probably performs no better, is on sale for more than £500. Assuming that AG are still making a profit on their old stock, this probably shows how overpriced golf equipment is!

Retailer makes profit shocker!!! The fellas I work with typically make 60-75% margin. (Different sector tho)

AG are probably dumping old stock at close to cost, but still making on a retro turnover payment.

 

[Hacker Khan]

I note that a set of Taylor Made irons I paid the best part of £500 for about 18 months ago, are now in the American Golf sale for less than £200 new! Of course, their latest equivalent model, which probably performs no better, is on sale for more than £500. Assuming that AG are still making a profit on their old stock, this probably shows how overpriced golf equipment is!

A friend of mine who has relatives living in the USA says that he can generally buy equipment over there for the same price in Dollars as we pay in Pounds. Makes you wonder why Bridgestone are pulling out of the U.K. market! :mmm:

This is a good article that answers some of your questions about profit. http://www.mygolfspy.com/dicks-sporting-goods-fires-500-pga-pros/

 

[WWG]

I note that a set of Taylor Made irons I paid the best part of £500 for about 18 months ago, are now in the American Golf sale for less than £200 new! Of course, their latest equivalent model, which probably performs no better, is on sale for more than £500. Assuming that AG are still making a profit on their old stock, this probably shows how overpriced golf equipment is!

A friend of mine who has relatives living in the USA says that he can generally buy equipment over there for the same price in Dollars as we pay in Pounds. Makes you wonder why Bridgestone are pulling out of the U.K. market! :mmm:

What does that tell you. Buy used, or buy the last model. It's the same for everything

 

[Beezerk]

What does that tell you. Buy used, or buy the last model. It's the same for everything

Amen to this.

 

[Lump]

What does that tell you. Buy used, or buy the last model. It's the same for everything

Sorry, but I don't believe that is 100% true. You get what you pay for.
If you buy chintzy guff, no matter of sport, home goods, electric items or cars it'll always depreciate more than quality items.
Your always going to pay a premium for new gear, you should simply ignore this and enjoy your new purchase.

 

[delc]

What does that tell you. Buy used, or buy the last model. It's the same for everything

Several of my clubs (apart from the irons) were bought second hand or in sales as end of range stock. I think that, despite the manufacturers' claims, the limits of technical improvement were reached several years ago, and there is little point in buying the very latest gear. The other problem is the rate at which some premium brand clubs depreciate. I am not going to get more than the new sale price for them, if and when I trade up!

 

[Pin-seeker]

Why anyone buys the latest models is beyond me.
More money than sense.

 

[SAPCOR1]

I know that it is annoying but you have had 18 months use out of them and they aren't going to perform any less than they did before you saw the sale price"

You however may do if you think about it too much 😱

 

[WWG]

Sorry, but I don't believe that is 100% true. You get what you pay for.
If you buy chintzy guff, no matter of sport, home goods, electric items or cars it'll always depreciate more than quality items.
Your always going to pay a premium for new gear, you should simply ignore this and enjoy your new purchase.

Now that sounds lie man who either just bought a set of over priced clubs, or is a retailer. The reality is if you purchase a set of replacement over priced model clubs to the newest model they will make virtually no difference. Although in a different line of retailing, it's what I did for years. Of course, I agree that you should just enjoy your new purchase, and forget the expense involved.

My best mate, an experienced golf pro, has had the same set of clubs for over ten years, and at nearly 50 still plays off of scratch. What's more, he never takes out more than 6 clubs at a time, and sticks them in a small bag and slings them over his shoulder. Sort of puts things in to perspective really, doesn't it ?

He has only given ever given me two tips regarding equipment

1) Ensure your irons have good shafts
2) Make sure you have a good putter

 

[WWG]

Why anyone buys the latest models is beyond me.
More money than sense.

True, but if nobody bought the last model, there wouldn't be a new model, and everyone would still have sticks made of wood.

But I get your point

 

[Pin-seeker]

True, but if nobody bought the last model, there wouldn't be a new model, and everyone would still have sticks made of wood.

But I get your point

And that is why I'm greatful to all the fan boys that just have to have the latest gear

 

[HomerJSimpson]

Has equipment reached it's limits? Not entirely sure that's true yet although I do think the transition from one release to another doesn't offer the golfer any real change in technology and playability. I have no issues with people buying new gear. If you have the money then why not?

 

[harpo_72]

This was always going to happen, on here every time TM released a driver everyone was very sceptical about the claims.
The golfer is easy prey ... Something new will always improve his/her game, forget hard work and practice. But then there is the other victim, the one who needs to be talked about at the club because they have the latest club....because no one will talk about their scores!
Sadly society is pretty much the same .. New phones, latest cars ...etc

 

[Three]

This is a good article that answers some of your questions about profit. http://www.mygolfspy.com/dicks-sporting-goods-fires-500-pga-pros/

I don't know how you can describe that as a good article....



It's a great article

 

[Jacko_G]

Several of my clubs (apart from the irons) were bought second hand or in sales as end of range stock. I think that, despite the manufacturers' claims, the limits of technical improvement were reached several years ago, and there is little point in buying the very latest gear. The other problem is the rate at which some premium brand clubs depreciate. I am not going to get more than the new sale price for them, if and when I trade up!

Giving credence to Crossfield's dismissal of technological advances these days???

 

[Tashyboy]

I don't know how you can describe that as a good article....



It's a great article

and i will second that, normally when a link is attached i find them a bit tedious, but it actually emphasises how bloody greedy both TM, Callaway, in fact most golf companies are. Not to mention Dicks. long story short it may well work out well for the consumer.
That aside, the link actually confirms that some golf companies have had there customers pants down.
TM did that with my SLDR, why would TM have in excess of 10 drivers on the market.

excellent topic which may have a few companies thinking "squeaky bum time".

 

[UlyssesSky]

Assuming that AG are still making a profit on their old stock, this probably shows how overpriced golf equipment is!

You're assumption is most likely wrong, so this shows nothing.

Even if we assumed they had a 60% margin factored in the original price, only about probably 10% would have been actual profit, the rest would have to cover for costs like rent, salaries, etc. So as soon as they reduce the price by more than 10% (or maybe 20% max), they wouldn't make a profit anymore, even though the there would still be a positive contribution margin to cover some costs on top of the cost of the clubs themselves.

Now, at 60% off (GBP 200 vs GBP 500), I'm really sure AG is actually losing money. Discounts that big aren't about making a profit, it's all about limiting losses and free the locked-up capital, i.e getting at least some money back.

 

[Three]

You're assumption is most likely wrong, so this shows nothing.

Even if we assumed they had a 60% margin factored in the original price, only about probably 10% would have been actual profit, the rest would have to cover for costs like rent, salaries, etc. So as soon as they reduce the price by more than 10% (or maybe 20% max), they wouldn't make a profit anymore, even though the there would still be a positive contribution margin to cover some costs on top of the cost of the clubs themselves.

Now, at 60% off (GBP 200 vs GBP 500), I'm really sure AG is actually losing money. Discounts that big aren't about making a profit, it's all about limiting losses and free the locked-up capital, i.e getting at least some money back.

👍👍👍👍👍

 

[Deleted member 16999]

This is a good article that answers some of your questions about profit. http://www.mygolfspy.com/dicks-sporting-goods-fires-500-pga-pros/

Very interesting, thanks for posting😃