With the financial crisis ...

[colintrav]

Why haven't we seen a drastic reduction in prices ...


Did anyone pick up a bargin price set for less than half price .. or just on the half price mark ???

IMO GOLF AND Mountain biking are the only excursions that i've noticed have very little in the way of bargins .

 

[CliveW]

Why should we see drastic price reductions?

 

[Tommo21]

Why should we see drastic price reductions?

Did you miss the so called credit crunch there ma man.

It's a fair point, but TBH, I've not seen many bargains going around although I got my Powakaddy for 349 from the pro and thats not bad. He does take it out the box to make sure it's all system go, thats got to be worth 50 pee.

 

[DCB]

I remember there was a post on here some time ago about how the curerent squeeze would affect our spending power on golf and golf related equipment. I don't really see much evidence of a slow down in our consumption of what the golf industry have on offer. The big manufacturers have all released new models for the 2010 season and we still seem to be buying them.

Maybe we have been more carefull in what we spend on our golf days / games away, but given the popularity of the Castle Stuart trip next spring, I don't see too much evidence of that.

Maybe the retailers and pro shops have been more carefull in their stock levels and that might be the reason that we haven't seen the reductions and bargains that the OP was talking about.

 

[brendy]

It seems to be specific areas of the population that are really affected by the recession. Myself, up until last month I worked in a pharmaceutical software company and they were pretty much recession proof. Pharmacy is one business that is going from strength to strength, especially with all the multitude of flu viruses out there at the moment.
I now work for a company that makes all of the tubing and plastics required by the bar and hospitality trades in the UK and across the world. It certainly isnt just as safe as my last job but is certainly more interesting. I havent really noticed any recession myself (judging by my monthly spends).
I have still bought my new gloves, balls and the odd club here and there.
To be honest the only difference I have noticed at our club is the price of the Annual Subs this year. It was 750 last year and I think it has risen to 830 this year, over 900 including insurance, GUI membership, my locker etc. when you look at it that way, sometimes you wonder is it all worth the expense eespecially when you hear guys on here playing year round for a few hundred.

 

[pokerjoke]

Myself brendy i pay £350 per year however i bet the quality of your course is much better than mine,we have some lovely courses in somerset at £600 plus i guess like everything else you get what you pay 4.

 

[haplesshacker]

In answer (of sorts) to the OP.

The straight forward answer is margins.

The furniture shops and high street clohing shops work in very different ways to the specialist retailers that you're using as an example.

I went for a job with a Scandnavian furniture company (not the one that you're probably thinking of!). Their typical markup was always over 300%, if not nearer 500% sometimes. ie. if it costs the retailer £100, they'd sell it between £300 and £500.

They can 'afford' to heavily discount some items. Take sofas as an example. They advertise a sofa for £300, though the chances are that you'll walk out having ordered a more expensive model. Due to comfort and colour options. Then there's the finance package, which the retailer makes money on.

High street clothing has a very short 'shelf life'. Again, huge markup initially, then what's left is heavily discounted, but still profitable.

Sadly the two markets that you mentioned, as well as the marine retail trade are working to much tighter margins. I won't go into details for fairly obvious reasons, but there just isn't the sums to play with. I wish there was!

In my old industry, the marine retail trade, every 'discount' chandlery has failed, they used low pricing and loss leaders to attract customers. However, that business profile just doesn't work, as customers would shop around and buy the cheapest xyz from whichever retailer had them on offer. Consequently, the retailer was only managing 8% magin on those goods. Certainly not profitble in keeping the company going.

Customers perception of deals has been skewd by the high street pricing template, and consequently specialist retailers are perceived as 'ripping' customers off. I'm afraid it comes down to potential numbers of customers and what the margins are. Sadly, specialist retailers do not have huge customer bases or margin to play with.

What they do have is good customer service, a wider range of products for their sector, a better knowledge of those products, and a geniuine interest in you and your interests.

I don't know which industry you're involved in, but I'll almost wager that they haven't halved their charges! My local garage where I have the car serviced haven't 'discounted' their rates!

Apologies for the long reply. I haven't done one in ages!

 

[Macster]

What recession ?

I run my own Travel Consultancy from home, and as I sit here, have bookings on my desk that total £11k, £12k, £28k, £16k, and £25k, nearing completion.

Not to mention the 2 chaps I booked a World Cup/7nt Semi's & Final package for, @ £7.5k each !

There are still an awful lot of people out there completely unaffected by any so called recession, and a lot of them play Golf, hence the major brands are probably less hit than you think.

 

[haplesshacker]

I'd forgotton to add one other crucial factor, and that's 'perceived value'.

This is what the customer thinks that an item, product or service is worth. Yes, a product or service is only worth what a customer is willing to pay for it. But, perhaps the customer does not understand the real benefits of having that product or service! And that's the fault of the sales-person.

I can hire a solicitor for £50 an hour, or £500 an hour. I'd pay the £500 an hour, if, and only if, I fully understood the benefits of using them when compared to the £50 an hour guy.

It's all about perceived value. I'd almost love to run a company where I have no prices. Everything would be open to negotiation. But, you wouldn't be able to come in and just pay for it. I'd want to 'sell' it to you in the nicest possible way. I'd want to know what you want to achieve using it, I'd want to know how you think the product will help you etc. Not only do I think that I'd get more for the product, but I also think that the customer would be more commited to using the product. And therefore be happier with their purchase.

I said that I'd 'almost' like to run such a company. Just not on my money!!

 

[HomerJSimpson]

I have to agree completely with HH's thoughts. My wife isn't working at the moment so money chez Homer is tighter than I'd like. Fortunately with no kids we can and have decided to be more pragmatic on the present buying front and more especially on the food front which if we'll all honest normally sees a lot of it wasted. We are still able to squirrel a little of my money each month for little treats (haircut for HID, a lesson for me) so we're not on the breadline.

I think money is still around and its peoples perception these days. A lot of golf gear is being sold cheaply (wedges with the extra spin grooves) but a lot of the less knowledgable and discerning see a name like Vokey with a large discount and think its a bargain. In truth they are getting a decent deal because obviously they can use the club for ten or so years if they wish. However its a good deal for the retailer who has got rid of end of line stock and still made a mrk up. Who is the preceived winner?