Nickent and Tour Edge Ready to Make the Jump?

ESPN writer Bill Simmons has one of my favorite sports phrases. He likes to watch for young players who are ready to “make the jump,” meaning they’re ready to take their game to the next level.

That was the phrase I had in my head at the recent PGA Merchandise Show when talking about equipment companies Nickent Golf and Tour Edge. Both companies have similarities, and both look poised for potentially bigger things in 2006.

Right now, the golf equipment biz has a definite pecking order. Acushnet (Titleist, Cobra, FootJoy, and Pinnacle), Callaway (including Odyssey, Ben Hogan, and Top-Flite) and TaylorMade-adidas Golf are the Big Three, with Ping, Cleveland, and Nike not far behind.

These six companies control a large portion of the premium golf equipment market, and trying to gain market share away from any of them is a daunting – and expensive – proposition. Ask companies like Adams and Orlimar about the difficulty in transitioning from having a hot product to actually becoming part of the upper crust. One-hit wonders need not apply.

And that brings us to Nickent and Tour Edge. Each company celebrates a milestone anniversary this year – Tour Edge has been in business for 20 years, Nickent for 10. Both have spent the majority of their time in the golf business as value-oriented companies, offering products that were often sold at off-course golf shops at a lower price point than bigger-name brands.

But each has had a taste of premium success over the last year, and each has decided to go for more. Tour Edge was one of the first companies to get in on the hybrid phenomenon, and garnered great buzz for their Exotics line of fairway woods and irons last year. Meanwhile, Nickent scored tour and retail success with its 3DX hybrids last year.

So what’s the game plan for making the jump? This is where the companies differ slightly. Tour Edge is taking a two-pronged approach. The company is continuing to provide retailers with an impressive array of value-oriented products. For 2006, that includes the V25 line of drivers and putters – adjustable-weight products at affordable prices. But Tour Edge is expanding the Exotics line beyond fairway woods and irons and into a premium sub-brand. The Exotics line now includes a hot new driver and an adjustable-weight hybrid. The Exotics products will go head-to-head (and price tag to price tag) with the biggest names in the business.

Nickent, on the other hand, is banking on a raft of new products designed under the watchful eye of long-time design expert John Hoeflich. The company has launched two new versions of its 3DX hybrids, along with new versions of its Pipe putter and two new irons – with a third on the way this spring. Nickent is hoping to strike while the iron, or hybrid, is hot, getting a strong batch of products to market while the brand’s buzz is still growing.

Both companies need to compete where the big boys do – on Tour and in advertising. And each is stepping up to the plate. Tour Edge launched its first major ad campaign last year, and is increasing its ad spending this year. Nickent has started running TV commercials to go with new print advertising.

There was tour success for each company last year without tee-up programs or staff professionals. Tour Edge usually had 5-6 hybrids or fairway woods in play each week on the PGA Tour, and Nickent ended the year as the top hybrid on the Nationwide Tour. Each will try to amp up their tour presence this year. Tour Edge has added Andy Harris as a full-time tour rep, concentrating on the PGA Tour. Nickent is focusing on upping its hybrid use across every tour, and is targeting the LPGA Tour with its Pipe putters. Nickent has also signed its first full-time staff professional in Nationwide Tour player Nick Cassini.

I think both companies are moving forward very smartly. Having seen how companies like Orlimar and Adams tried to cover too much ground too quickly, they’re seeking incremental growth. And neither is forsaking their value roots. Nickent’s coming tech-heavy 3DX Hybrid irons will have a street price of $599 for a set, while Tour Edge’s V25 putter will retail for $149 including an impressive weight kit.

The golf business can be a bit like a golf tournament. You can’t win it in the early rounds, but you can lose it there. Nickent and Tour Edge have each posted good early-round scores. But neither seems satisfied with simply making the cut. I’m looking forward to seeing how they play on the weekend.