How can a pro shop be cheaper on everything?

Let me explain a little. We have a local shop which specialize in merchandise and driving range facilities all year round in Michigan. I have not been in there much. But now that I am in the market for a new driver I decided to give them a shot because I know they have a "try before you buy" policy and do free club fitting. After going through the shop, they are cheaper on everything than anyone else...and that includes online.

For example...any driver that all other retailers sell for $399 (i.e. R11, 910, Burner TP, etc) they sell for $359. Titleist 14-way carry bag that sells for $195 they list at $169 and right now have $30 off every bag. The other was the ClicGear 3.0 which is $199 everywhere they are at $159. I am not complaining and I know their stuff is legit as they have a HUGE demo day every spring and every club manufacturer is there. I just want to know how they can sell that stuff so competitively.

what pro shop are you referring to? i have an idea as to what one, as i live in a similar area in michigan as you. how about the amazing weather today! what a great day for some golf.

Golf Emporium, Yes...was great weather. Have not had a chance to play yet.

Buy first...ask questions later!

One thing that may help them is that unlike other pro shops whose only revenue and profit comes from selling equipment, your place also has a driving range business, and this probably has a couple business benefits for them.  First, the the driving range business would need the land and a building anyway, so the pro shop benefits from not having to cover those costs.    Second, they may have found the marketing benefits of combining the two operations, where the customers who come to the pro shop will stay a bit longer and go hit some balls and the customers who come to hit balls end up doing some shopping.      Combining the two is smart business, and it sounds like they're taking advantage and making it attractive to their customers.

Just goes to show how much other places really mark up their products.  Even when you see last year's models at blowout prices, they are still making a profit from the sale.  Prices are set to what they think the consumer will actually pay, not what they think the item is worth, which is true for pretty much all of the retail industry.

Someone mentioned mark up and they were dead nuts, right on, perfect.  I'm the Assistant Pro/Golf Shop Manager at a course here in WI.  All of the major companies offer "exclusive" contracts to golf shops.  Because it's my choice and I have excellent taste, our course is Titleist exclusive for balls and equipment, Adidas exclusive for all apparel.  Here are some of my prices on Titleist models and I'll let you compare them for yourself.

Stock Cameron Putters - $105, (limited editions carry higher prices)

910 Drivers - $120

AP2 710 3-PW - $450

Vokey Wedges - $45

Dozen ProV1 Personalized - $23.50

These are my wholesale prices, on top of this I can also order a certain amount of goods at what Titleist calls "PUD" or Personal Use Discount.  PUD pricing is 20 percent less than wholesale.  As good as all that sounds, once a year Titleist will also grant me 30% of my golf ball sales in free merchandise.  This year I picked up two 910's, replaced my wedges, and got 10 Dozen balls...didn't cost me a dime, not even shipping.  Now we all know there is no way that Titleist will sell me something for less than what it cost them to make, market, and distribute so you can see how they make their money.

Clothing is even more outrageous, the shirts that you see at Golf Galaxy and other chains for 50, 60 bucks can be ordered from my Adidas rep for as little as 10 to 15!  The amount of mark up companies have been able to put on their product has gotten out of hand over the last five years or so, and doesn't seem to be stopping as the general golfer has no problems paying 4, 5, or 6 hundred dollars for the latest and greatest driver.

What I'm trying to say is....DON'T BUY YOUR GOODS FROM GOLF STORES!!!  Support your local golf shops and golf courses.  They will most likely always have someone more informed on products because they actually use them.  They SHOULD have better prices for you as well.  I get upset with any of my members for shopping anywhere but my golf shop, all they did was waste money.  Also, the big chain stores buy all of their stuff in bulk, every product I get comes custom ordered direct from the manufacturer...quality over quantity my friends!

Most likely its due to the fact that they deal in so much more volume that they can afford to undercut everyone else in price and still make a profit.

You guys were right down the line in my thinking. Did my part to support the local golf shop today. Had their huge demo day and on top of their already lowest prices in the area they had a no tax promotion going. Titleist D3 w/ Project X 6.0 - $359 (out the door), Titleist 14-way carry bag - $139.99 and a orange Titleist hat for $15. Only thing I could not get myself to go for was the beautiful Titleist towel...the big one...I think it was $35. Crazy for a towel. But for the research I have done online and locally...I was happy with the prices. My golf club contacts are long gone so the hope of me getting something around wholesale was not an option.