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Mark up on golf gear?

freddielong said:
You have to be aware though that a pro that has to support a bricks and mortar shop and staff can not go as low as an online retailer with less outgoings.
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I understand that but at the end of the day golf is a hobby, if I can get the same gear cheaper of course ill do that. No different to when I played football - you know what you want so get the best deal possible. Tbh our pro is spot on and tends to match any prices here but its still a growing sport so can't match the UK
 
freddielong said:
You have to be aware though that a pro that has to support a bricks and mortar shop and staff can not go as low as an online retailer with less outgoings.
Click to expand...


According to a previous poster, all customers will already take this into consideration and it does not need to be highlighted
 
What is the situation with all the out of date or recently replaced gear? Do the club/shop make a massive loss on them or is it more sale and return type of thing?

just seems with the comments so far highlight the golf sales industry is very tough with little financial reward in the products that are sold
 
There was an instance last year in the US where a major retailer made all their golf pros redundant as golf was no longer the gravy train it once was. It has probably been a victim of its own success. It's just not sustainable to have new products hitting the shelves every year (or less).

The online shops are running what in effect is a large distribution warehouse, far less of an overhead to take into account. Club Pros need to be in a purchasing group like Tartan Golf etc to stand any chance.
 
Tiger said:
You also have to bear in mind that 20% of the total sale price goes to the taxman. So from a £250 driver 50 quid goes straight to the government coffers. So if they bought it for £170 their gross profit would be £30. Taking off your 10% reduces their gross profit to just a tenner...
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why does 20% go straight to the tax man ?if the retailer got the club for free maybe ,but as they didnt ,and using your figures they paid£170 for the club ,so on my reckoning they would only pay the tax on the profit made ,and not the whole cost of the club.
 
This thread is perfectly proving my earlier point

Customers DO NOT understand pricing and so giving them a number requires a business and finance lesson

VAT is a consumer tax, vat registered companies reclaim it, non vat registered companies do not charge it but pay it on purchase.

I ask manufacturers for their cost often, they consistently tell me, none of your business
(I would like to know and ask but understand that is not MY business)
just as consumers do not need to know the retailer or resellers costs, its not THEIR business and even if they knew its obvious from the posts above, they could not work out what contribution to profit a 100gbp margin might actually produce.

BTW a 250gbp driver is not 50 quid vat it is 41.67 vat


Really, you as a consumer choose based on what you are presented with, that is enough information to make your decision, his business is HIS business.
 
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351DRIVER said:
This thread is perfectly proving my earlier point

Customers DO NOT understand pricing and so giving them a number requires a business and finance lesson

VAT is a consumer tax, vat registered companies reclaim it, non vat registered companies do not charge it but pay it on purchase.

I ask manufacturers for their cost often, they consistently tell me, none of your business
(I would like to know and ask but understand that is not MY business)
just as consumers do not need to know the retailer or resellers costs, its not THEIR business and even if they knew its obvious from the posts above, they could not work out what contribution to profit a 100gbp margin might actually produce.

BTW a 250gbp driver is not 50 quid vat it is 41.67 vat


Really, you as a consumer choose based on what you are presented with, that is enough information to make your decision, his business is HIS business.
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Assuming the retailer/pro is VAT registered and that the £170 paid to the supplier is inclusive of VAT then surely the net VAT is £13.33 i.e the difference between VAT paid and VAT collected.
 
I was only saying how much VAT is in the ticket price of 250gbp nothing to do with what the pro is ultimately liable for

Long VAT discussions are better had on business forums, where they happen frequently
 
This always interests me. I get American golf vouchers from my family from my bday which is great but my local pro can do better prices than them for me. For example my freestyles American golf wanted £120 , they price matched my pros shop at £110 but had I gone to him he would have done it for £90 for me but obviously they couldn't match a for a mate price
 
351DRIVER said:
Mark up varies based on many things, your account, are you in a buying group, your volume etc so there is no answer

To be honest, trade prices are for the trade and no one should be publishing them on here

It is not the customers business what the pro paid, being a pro is tough is the bottom line and you should support your local guy if you can
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What if your local guy is a 🔔🔚
 
Obviously there won't be a one size fits all for Pro's,
Ours is paid a fee/wage to be our Pro, his shop including electricity is paid for by the Club (although his fee/wage takes that into account) he will price match for members and offers 10% discount if you spend over £100.00.
Looks like we've got a decent guy compared to some.
 
Something I always wondered myself.

I know golf store europe went into liquidation last year. Looks like direct golf going by the way side. So for me not a good time to be thinking of going into this line of work.

I think the company like ping, Callaway and Calvin Green have set prices on there gear. So therefore I would say they sell to the retailers at a fair price.

Reason I think this is if you take a g30 driver for example when first out the rrp is was 299. And only place you see it cheaper was likely eBay.

Then a year or two on you see the same store selling them off at 99 quid. So therefore I would say at this stage the ping say to the retailer look the g35 coming now in 6 months we are moving on the g30s we can now sell them at x amount less then you got them two years ago.

So therefore I feel the markup is Manimal to start with then after so many months that's when the manufacturers may do deals to retailers. And of course the bigger retailers buying from the manufacturers on a regular basis get the better deals. But on day one the local pro will be selling the driver the same price as the big players.

American golf are a bit of different animal they for example buy tm stuff from the Asia market therefore getting a slightly higher market up than most. Hence why they are the biggest player in the uk
 
Hendy said:
Something I always wondered myself.

I know golf store europe went into liquidation last year. Looks like direct golf going by the way side. So for me not a good time to be thinking of going into this line of work.

I think the company like ping, Callaway and Calvin Green have set prices on there gear. So therefore I would say they sell to the retailers at a fair price.

Reason I think this is if you take a g30 driver for example when first out the rrp is was 299. And only place you see it cheaper was likely eBay.

Then a year or two on you see the same store selling them off at 99 quid. So therefore I would say at this stage the ping say to the retailer look the g35 coming now in 6 months we are moving on the g30s we can now sell them at x amount less then you got them two years ago.

So therefore I feel the markup is Manimal to start with then after so many months that's when the manufacturers may do deals to retailers. And of course the bigger retailers buying from the manufacturers on a regular basis get the better deals. But on day one the local pro will be selling the driver the same price as the big players.

American golf are a bit of different animal they for example buy tm stuff from the Asia market therefore getting a slightly higher market up than most. Hence why they are the biggest player in the uk
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They are the only real player (street wise) now. Direct golf are terrible. I know sports direct took them over but was hoping they wouldn't go for the sports direct business model but I was hoping too much. Constantly getting emails advertising offers on Dunlop products. No offence to Dunlop but their is a reason I don't want to use them
 
HID once worked at a golf club and speaking to the pro, it was a lot on most gear. Not just the golf stuff but food, drink etc. Of course they've a profit to make and I have no issue with that. However some of the mark ups are ridiculous
 
My bad I divided by 6 rather than 5 :rolleyes: the principle of my point is still the same. Gross profit goes down from £38.33 to £17.50. Retail is hard. Your local pro has higher overheads than a warehouse online retailer. I'd rather pay them a few extra pounds like Hobbit for the customer service, advice and relationship. The ability to take a demo club on the course etc. I must be mental!!!
 
Tiger said:
You also have to bear in mind that 20% of the total sale price goes to the taxman. So from a £250 driver 50 quid goes straight to the government coffers. So if they bought it for £170 their gross profit would be £30. Taking off your 10% reduces their gross profit to just a tenner...
Click to expand...
Not quite, because the pro would reclaim the VAT paid on the purchase. That's why it's called Value Added Tax
 
Tashyboy sees summat, tries summat likes summat. Then and only then how much.
Internet will be first place to look, what's the lowest price? Do they then do it in the club shop. Yes or no.
Yes, will they price match or do it within a couple of quid. If so then first I will use my club shop vouchers So I have not had to use Mr Sterling. Why coz if there is a problem I will deal with it face to face in the shop and not spend ages fannying about on the phone or tinternet.
If it's a no and the shop will not budge on price then the internet it is. Now at what stage am I interested in the mark up or tax that will be paid on said item in either the shop or Internet. Probably about 50 years after I wonder what killed the dinosaurs.
 
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