Mark up on golf gear?

[matt71]

Does anyone know what the mark up/profit that a local pro shop makes on new clubs?

for example a driver that is £250 pretty much everywhere what would they likely get them in for?

just curious as trying to get a deal but I have been told that it is less than 10% they make.

if the profit is so low seems a really tight industry to be in especially when new gear comes out 6-12 months later and the old gear is well nearly half price. I presume they are making a mega loss if that's the case?

 

[hovis]

I got my sldr at trade and it was £170. It was on the shelf at 299.

Gor my galvin green jacket for 160. Should have been 255

 

[351DRIVER]

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

 

[Tiger]

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...

 

[Siren]

American Golf work on a minimum of 33%

 

[SAPCOR1]

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

Don't see the issue with the customer knowing what the pro pays, at least there will be a better understanding from the customer and set expectations

The Pro at our club is more than happy to show anyone what he pays and is open about his margins. He is giving up on stocking adidas/Taylor Made this year as he makes virtualy nothing.

 

[freddielong]

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...

You forgot to take what they pay out on wages, other taxes, utilities and possibly rent out of that tenner, it's not all profit.

 

[351DRIVER]

Don't see the issue with the customer knowing what the pro pays, at least there will be a better understanding from the customer and set expectations

The Pro at our club is more than happy to show anyone what he pays and is open about his margins. He is giving up on stocking adidas/Taylor Made this year as he makes virtualy nothing.

Any business is not going to say to its customers, here is the cost of our stock to us because the customer will invariably just see the margin and not the waste and the fixed and variable costs associated with running his business.

It cost me 150
You pay 250

WOW you make 100 quid? Er not quite

P.S the pro at your club is no doubt in breach of his agreement with his suppliers who supply trade pricing to him, it is not meant to be shown to the retail consumer.

Unless you want each pro to individually educate each customer about the cost of running their own store and give them a lesson in accountancy this is not really a good idea.. people would see the pricing and go wow thats a lot of profit, most pros struggle as it is, giving this info to joe public would only make it tougher.

 

[Tiger]

You forgot to take what they pay out on wages, other taxes, utilities and possibly rent out of that tenner, it's not all profit.

Ahem that's why I said gross profit

 

[Tashyboy]

American Golf work on a minimum of 33%

That was what a local shop was making when flogging me a top. Re me not knowing what people are making, I can understand that to an extent but if pro shops are wanting us to shop there and not internet sites then there margins have to be appealing and once said buyer has done his homework flexible.

 

[freddielong]

Ahem that's why I said gross profit

I know,I just thought I would add a bit more emphasis to your post 👍, retail is very tough.

 

[SAPCOR1]

Any business is not going to say to its customers, here is the cost of our stock to us because the customer will invariably just see the margin and not the waste and the fixed and variable costs associated with running his business.

It cost me 150
You pay 250

WOW you make 100 quid? Er not quite

P.S the pro at your club is no doubt in breach of his agreement with his suppliers who supply trade pricing to him, it is not meant to be shown to the retail consumer.

Unless you want each pro to individually educate each customer about the cost of running their own store and give them a lesson in accountancy this is not really a good idea.. people would see the pricing and go wow thats a lot of profit, most pros struggle as it is, giving this info to joe public would only make it tougher.

Disagree, majority will understand any business has to make a profit to pay bills,eat etc. No need for a lesson in accountancy.

Being in sales for the past 25 plus years I cannot recall anything about not disclosing wholesale prices to retail customers in any contract issued, signed or read. However I haven't seen the Ts and Cs in every agreement in the golf retail business, so I could be wrong

 

[hovis]

Disagree, majority will understand any business has to make a profit to pay bills,eat etc. No need for a lesson in accountancy.

Being in sales for the past 25 plus years I cannot recall anything about not disclosing wholesale prices to retail customers in any contract issued, signed or read. However I haven't seen the Ts and Cs in every agreement in the golf retail business, so I could be wrong

I agree. I think "351" is being a tad touchy

 

[Hobbit]

Does anyone know what the mark up/profit that a local pro shop makes on new clubs?

for example a driver that is £250 pretty much everywhere what would they likely get them in for?

just curious as trying to get a deal but I have been told that it is less than 10% they make.

if the profit is so low seems a really tight industry to be in especially when new gear comes out 6-12 months later and the old gear is well nearly half price. I presume they are making a mega loss if that's the case?

So not "just curious." You want the info so that you can decide what you think is a fair margin for the pro in your negotiation. Nowt wrong with that I guess.

But an indication of how tough it can be for a pro. I've seen a course closed for 6 weeks due to bad weather. The pro was lucky to sell a Mars Bar a week. He still had an assistant to pay, and a mortgage at home etc.

Would I skim the last £5 out of a margin or do I accept that paying a little extra gives me free advice at a later date? My choice is pay the little extra, but I accept unreservedly that others don't think the same way.

 

[matt71]

So not "just curious." You want the info so that you can decide what you think is a fair margin for the pro in your negotiation. Nowt wrong with that I guess.

But an indication of how tough it can be for a pro. I've seen a course closed for 6 weeks due to bad weather. The pro was lucky to sell a Mars Bar a week. He still had an assistant to pay, and a mortgage at home etc.

Would I skim the last £5 out of a margin or do I accept that paying a little extra gives me free advice at a later date? My choice is pay the little extra, but I accept unreservedly that others don't think the same way.

Not far wrong hobbit!

I want to buy and will prob will buy from pro but of course would like to save some of my hard earned money!

The pro at my gaff is a friend and a top guy and the reason for asking is so I know what my limits are in asking for a discount , the last thing I want is to see the shop and club suffer and I feel it's important to keep supporting the club especially as we have struggled financially like a lot of places around the uk.

 

[need_my_wedge]

Why do I need to know how much mark up he makes to determine my purchase? If I'm thinking of buying something, I'll check his price, then do a bit of research online. If the difference is a couple quid, he usually gets the deal. If I find it online cheaper, I'll ask him if he can match, if yes, he usually gets the deal. If he can't match, I make a decision based on what I'm prepared to pay, sometimes still he gets the deal, others, I buy where I get the best saving. I still don't need to know how much mark up he made, or how much he needs to pay out of that mark up to keep his business running. It's his business and none of mine.

We have a good bunch of guys in our pro shop, always willing to listen to our mishaps on the course, always willing to impart advice if asked, even if you don't have lessons with them specifically. They're worth supporting where possible in my book.

 

[Hobbit]

Why do I need to know how much mark up he makes to determine my purchase? If I'm thinking of buying something, I'll check his price, then do a bit of research online. If the difference is a couple quid, he usually gets the deal. If I find it online cheaper, I'll ask him if he can match, if yes, he usually gets the deal. If he can't match, I make a decision based on what I'm prepared to pay, sometimes still he gets the deal, others, I buy where I get the best saving. I still don't need to know how much mark up he made, or how much he needs to pay out of that mark up to keep his business running. It's his business and none of mine.

We have a good bunch of guys in our pro shop, always willing to listen to our mishaps on the course, always willing to impart advice if asked, even if you don't have lessons with them specifically. They're worth supporting where possible in my book.

Very well put. We all have a breakpoint for everything we do. Some will only buy the Mars Bar from a pro, while others pretty much everything. No one is right and no one is wrong. Just different horses for different courses.

Lets not forget, the buyer also might have a mortgage and food to put on the table.

 

[freddielong]

The pro at my gaff is a friend and a top guy and the reason for asking is so I know what my limits are in asking for a discount , the last thing I want is to see the shop and club suffer and I feel it's important to keep supporting the club especially as we have struggled financially like a lot of places around the uk.

That makes it easy for you then you pay the asking price, the pro has already worked our what he needs to make and it's on the price tag. If anything as the pro has to compete with online stores the asking price is already lower than he can afford.

This used to drive me mad when I had a shop, because you are friendly people think they can ask for a discount, no one asks for a discount in Marks and Spencer.

 

[Lambchops]

I'm all for supporting the club mind but if I can save money elsewhere ill go there - to me a 2 way street, I'll happily go to the pro if he will price match. What I wouldn't do is go in and ask for a discount without a relevant comparison

 

[freddielong]

I'm all for supporting the club mind but if I can save money elsewhere ill go there - to me a 2 way street, I'll happily go to the pro if he will price match. What I wouldn't do is go in and ask for a discount without a relevant comparison

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.