Got the Backorder Blues?

Welcome to The Bag Drop, a new weekly rundown on what’s going on the world of golf equipment. If you’re a gearhead who lives to find out the latest about what’s going on in the golf business and what new products and trends are around the bend, read on – and be sure to come back next week for another round.

This week, we’ll start started on a sour note: Why are so many players having to wait to get new gear because the clubs they want are on backorder?

The golf equipment business has been in a slump the last few years. Golfers have been playing fewer rounds, which leads to less golf shop traffic and fewer purchases. And increased competition has driven prices down, as some manufacturers have flooded the market with new products.

What’s bad for the equipment companies has been good for consumers. Prices have fallen, and the glut of product has made for a remarkably wide variety of top-notch equipment available for nearly any skill level.

But something has changed this year. The drop in rounds played has continued, but equipment sales have actually rebounded. I haven’t seen any hard data to suggest why sales are up, but I suspect the industry is seeing the result of a replacement cycle. In other words, a bunch of people have decided it’s time to buy new clubs. Maybe people feel better about their job security, maybe the low prices on equipment have finally caused golfers to open their wallets.

Or maybe it’s just a regular replacement cycle. Conventional wisdom in the industry is that avid golfers (the folks who play the most and spend the most on equipment) buy a new driver or putter every year, but only replace irons every 4-5 years. Perhaps a lot of people are in that 4-5 year sweet spot and are buying new irons – and probably some woods, wedges, putters and bags to go with them.

Whatever is causing this sales surge, the side effect can be a bit unpleasant. Many retailers and consumers alike are reporting that there are long lead times for ordering products from golf companies, especially large manufacturers like Callaway and TaylorMade. Some golfers are ordering custom iron sets or driver and being told that it will be a month or more before their orders come in.

In our age of instant gratification, no one likes to wait even the standard 10-14 days for a custom order. But even some standard configurations of popular woods and irons are backordered. A month is still not as long as some people waited for Ping Eye2 irons at the height of their 1980s popularity – it wasn’t unusual for customers to wait months for a set of the must-have irons, and I know of one player who waited 14 months for his set. But why are golfers suddenly facing the backorder blues after all these years?

I think there are many factors. First is the popularity of custom fitting. When manufacturers ramp up production of a new product, they make more than 90 percent of the product “standard” in terms of shafts, lie angles and other customizable elements. So when you order a set of irons 2″ over in length, 2° flat and with an exotic shaft, the company’s going to have to make your order from scratch. That takes time.

Second, the company can’t make your clubs if they don’t have the components. Like all production-oriented businesses, golf companies are trying to maintain lean inventories so they don’t get caught with a lot of extra product if something doesn’t sell well. So they make the bare minimum of product at first, then play catch-up if the product sells through its first run. So if you’re trying to get a very popular item, this is what you might be facing.

Third, most clubheads, shafts and grips come from outside the U.S. these days. The clubs are assembled here, but the heads, grips and even headcovers come mainly from China, while shafts are made in the Far East and Mexico. Getting these components shipped and through customs is not always a smooth process, and can be a bottleneck in the production process.

Lastly, it appears that the advent of “big box” golf retailers like Golfsmith, Edwin Watts and Golf Galaxy might be putting the squeeze on some smaller retailers and shops. Like Wal-Mart and Best Buy, the bigger golf retailers get priority on hot new products because they can promise higher-volume sales. So smaller retailers face smaller shipments, and more trouble getting the hot products once their first order runs out.

What should you do as a consumer? If you have your heart set on a certain purchase that you need by a set date, let your golf shop of choice know about your deadline while you’re shopping. They can steer you away from products that are on backorder, or they can try to work around the bottleneck. Sometimes, if you ask nicely, a golf shop can prevail upon a company’s sales rep to “find” you the clubs you’re looking for at another nearby shop, or via some other creative inventory method. It never hurts to ask, and being extra cordial with your salesperson always helps.

Parting Shots
What do the last two PGA Tour players to shoot 59 in a competitive round have in common? Callaway’s prototype Fusion FT-3 driver. Phil Mickelson used the driver during his 59 at the PGA Grand Slam last fall, while Olin Browne used the same driver model to shoot 59 at a U.S. Open qualifier last week. Throw in Annika Sorenstam’s two LPGA Tour majors with the driver this year, and it’s safe to say that the Fusion FT-3 is generating a lot of buzz on tour. Look for a retail launch in early July.

What will be the equipment trends at this week’s U.S. Open? The supremely tricky greens at Pinehurst No. 2 will put a premium on accuracy, high approach shots and chipping. I’d expect to see some Titleist players switch from the Pro V1x to the softer Pro V1 model, and some Callaway players make the same move from the HX Tour to the prototype HX Tour 56 ball. The Pro V1 and HX Tour 56 both spin more than their sibling models, and are softer. All the better to keep shots from bouncing or rolling off the upside-down saucer greens at Pinehurst.

Also, look for a lot of hybrid clubs in the bags of the players. Instead of 2- or 3-irons, players will switch to comparably lofted hybrid clubs that can bring long approach shots in higher for softer landings. And don’t forget Todd Hamilton’s success with his Sonartec MD hybrid club at the British Open last year. He used the club to hit a number of key bump-and-run and chip shots on the firm, tight turf. Pinehurst has a number of chipping/collection areas where players will use a hybrid or even a fairway wood to “putt” the ball onto the green instead of attempting a flop shot – a strategy that Tiger Woods employed at Pinehurst back in 1999. Should make for some interesting shots.

Do you have any equipment questions or comments for The Bag Drop? Leave them below in the comments.