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TaylorMade M5/M6 Contest


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I'm actually going to look at Dick's tonight, so I need to pick up this form while I'm there, too.

-- Daniel

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On 5/1/2019 at 4:30 PM, iacas said:

Yeah, that just seems screwy.

This promotion doesn't seem to make any sense. Surely TaylorMade doesn't think that even if they end up giving away ten thousand free drivers, that it's worth it for the promotional nature, right?

I believe it’s a legal thing. If they don’t have the no purchase necessary thing then it counts as gambling. Not legal in many states at least, hence them having to do it that way. It does seem strange, but I think they have to honor it. 

I also think if they have a return policy that you can return it in the window. I’m not sure if you could get the money back if Rory wins and still return it. That seems unlikely. 

I think the reason they do it is if Rory is 10:1 and they sell for sake of argument 100 drivers at full price, those drivers might cost them $40,000. For $4,000 they can cover the cost of those and they’ll have sold for $550ish ($55,000 for the 100) so they still make money on it. I imagine most people won’t be overly devious and return if he loses and even if they do they’re not out anything. 

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I went to my local DSG yesterday and the salesman said all of the forms were snatched up in the first day or so. So I bought an M5 with the Tensei Orange shaft and will be keeping the cellophane on it in case Rory doesn't win and I have to return it. They had all of the drivers zip tied to the display. The salesman said they had 8 walk out the door last week so now they zip tie them down. 😩

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13 hours ago, Ty_Webb said:

I believe it’s a legal thing. If they don’t have the no purchase necessary thing then it counts as gambling. Not legal in many states at least, hence them having to do it that way. It does seem strange, but I think they have to honor it. 

I also think if they have a return policy that you can return it in the window. I’m not sure if you could get the money back if Rory wins and still return it. That seems unlikely. 

I think the reason they do it is if Rory is 10:1 and they sell for sake of argument 100 drivers at full price, those drivers might cost them $40,000. For $4,000 they can cover the cost of those and they’ll have sold for $550ish ($55,000 for the 100) so they still make money on it. I imagine most people won’t be overly devious and return if he loses and even if they do they’re not out anything. 

But they're actually refunding the money for purchases. So if they actually sell 10k of them, they're NOT getting the money back at all.

It's not even a gift card to Dick's/Golf Galaxy. It's a check or a VISA gift card.

The only ones they're not losing about $590 on are the ones with no previous purchase.

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

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6 minutes ago, iacas said:

But they're actually refunding the money for purchases. So if they actually sell 10k of them, they're NOT getting the money back at all.

It's not even a gift card to Dick's/Golf Galaxy. It's a check or a VISA gift card.

The only ones they're not losing about $590 on are the ones with no previous purchase.

Here is what I mean - let's say they sell 10,000 of them at $590 a piece. That's $5.9 million. Let's say those clubs cost TM $500 each to make. Rory's odds are about 10/1, so they go put $600,000 on Rory to win (they obviously don't actually do this, but they'll buy insurance for it from an insurance company, so same kind of thing). Then here is what happens:

Case 1 - Rory wins. They give back $5,900,000 to customers who bought their club. They collect $6,600,000 from the insurance company/bookie. They're up $100,000.

Case 2 - Rory doesn't win. They keep the $5,900,000 from customers and they lose the $600,000 stake. Club cost $5,000,000. Stake $600,000. Total cost $5,600,000. Income $5,900,000. They're up $300,000.

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5 minutes ago, Ty_Webb said:

Here is what I mean - let's say they sell 10,000 of them at $590 a piece. That's $5.9 million. Let's say those clubs cost TM $500 each to make. Rory's odds are about 10/1, so they go put $600,000 on Rory to win (they obviously don't actually do this, but they'll buy insurance for it from an insurance company, so same kind of thing). Then here is what happens:

Yup, that was my first thought too...they could insure it in a way that probably CUTS the profit margin on the clubs, but doesn't reduce it to 0.

- John

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14 minutes ago, Hardspoon said:

Yup, that was my first thought too...they could insure it in a way that probably CUTS the profit margin on the clubs, but doesn't reduce it to 0.

Exactly - and if the promotion enables them to sell 10,000 clubs they otherwise would not have sold, then great.

It all falls down if a bunch of people figure out that they don't need to buy the clubs or they can buy them and return them. All they can do is limit their exposure on those people.

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A lot of little things wrong with those scenarios. Though I don't disagree with the whole thing in general - you damn well know they have an insurance policy in place - the details are all goofy. TaylorMade isn't out $5.9M - they're out $5.9M minus the cost of whatever they sold the clubs to Dick's for. Dick's isn't out anything* - they actually stand only to gain, really, because they'll sell more clubs. Remember too if Rory wins that there's going to be some mixture of people who pre-bought clubs and people who will get a free club they marked down.

I bought a club, so if Rory wins I'll get a VISA cash card or a check for $582.xx from TaylorMade, but that's with the $400 or whatever that TaylorMade made already from Dick's, and covers too the taxes and $149 or whatever that Dick's made off of me. So the real loss in that case is only $182.xx to TaylorMade, and that's only if Dick's has no stake in this.

* Unless they helped pay in to the insurance policy or co-promote it in some way with TaylorMade.

In other words, it's not as hard to cover the losses as you'd think. They're not actually out $5.9M. Probably much, much less than that. (And for any write-in, no-purchase people, they're only out shipping and the cost to manufacture an M5 or M6 - so maybe $100? $150?)

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

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1 hour ago, iacas said:

A lot of little things wrong with those scenarios. Though I don't disagree with the whole thing in general - you damn well know they have an insurance policy in place - the details are all goofy. TaylorMade isn't out $5.9M - they're out $5.9M minus the cost of whatever they sold the clubs to Dick's for. Dick's isn't out anything* - they actually stand only to gain, really, because they'll sell more clubs. Remember too if Rory wins that there's going to be some mixture of people who pre-bought clubs and people who will get a free club they marked down.

I bought a club, so if Rory wins I'll get a VISA cash card or a check for $582.xx from TaylorMade, but that's with the $400 or whatever that TaylorMade made already from Dick's, and covers too the taxes and $149 or whatever that Dick's made off of me. So the real loss in that case is only $182.xx to TaylorMade, and that's only if Dick's has no stake in this.

* Unless they helped pay in to the insurance policy or co-promote it in some way with TaylorMade.

In other words, it's not as hard to cover the losses as you'd think. They're not actually out $5.9M. Probably much, much less than that. (And for any write-in, no-purchase people, they're only out shipping and the cost to manufacture an M5 or M6 - so maybe $100? $150?)

Those goofy details don’t change the big picture. I wonder what would happen if you got your check for $582 and returned the club. You may well get the cash. I think you can choose the cash if you do the no purchase necessary thing, but not sure about that. 

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So what we are saying here is, I would be stupid not to go to Dicks today and either 1) Get a no purchase necessary form or 2) Buy the Taylormade M5/M6 driver of choice and leave it alone until I see the results of the contest?  I don't really need a new driver as I just bought one, but I can spare 500 or so for a couple of weeks to take a chance at getting one for free..

Bryan A
"Your desire to change must be greater than your desire to stay the same"

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22 minutes ago, TN94z said:

So what we are saying here is, I would be stupid not to go to Dicks today and either 1) Get a no purchase necessary form or 2) Buy the Taylormade M5/M6 driver of choice and leave it alone until I see the results of the contest?  I don't really need a new driver as I just bought one, but I can spare 500 or so for a couple of weeks to take a chance at getting one for free..

Yes. The blurb re the no purchase necessary says you need a numbered form. I don't have a numbered form because they didn't have any at either of the two stores I tried, but they gave me a non-numbered one and swore blind it would work. YMMV. I'm tempted to go buy one anyway and just keep it in the wrap too.

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2 minutes ago, Ty_Webb said:

Yes. The blurb re the no purchase necessary says you need a numbered form. I don't have a numbered form because they didn't have any at either of the two stores I tried, but they gave me a non-numbered one and swore blind it would work. YMMV. I'm tempted to go buy one anyway and just keep it in the wrap too.

If they don't have the forms, I'll just buy one and hold on to it. No worries.

Bryan A
"Your desire to change must be greater than your desire to stay the same"

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(edited)

I had to get out just now for work so I ran by my local Dick's. They had very few drivers, none of which I wanted so I asked for a form. He gave me one but had them in a drawer so you could only get one. But I got it...small form

Edited by TN94z

Bryan A
"Your desire to change must be greater than your desire to stay the same"

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22 minutes ago, TN94z said:

I had to get out just now for work so I ran by my local Dick's. They had very few drivers, none of which I wanted so I asked for a form. He gave me one but had them in a drawer so you could only get one. But I got it...small form

Is there a little red number in the bottom right?

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Just now, Ty_Webb said:

Is there a little red number in the bottom right?

Yes sir. I made sure it was tagged with a number before I left

Bryan A
"Your desire to change must be greater than your desire to stay the same"

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4 hours ago, Ty_Webb said:

Those goofy details don’t change the big picture.

Sure they do. Again, they're not out $5.9M. They're out a fraction of that, which severely limits the insurance policy they'd need to get.

4 hours ago, Ty_Webb said:

I wonder what would happen if you got your check for $582 and returned the club.

You can't do that. You have to mail in the receipt. And I'm pretty sure they mail the checks so slowly you're well outside the return window, even if you have a second receipt or whatever.

4 hours ago, Ty_Webb said:

You may well get the cash. I think you can choose the cash if you do the no purchase necessary thing, but not sure about that. 

I don't think they're just going to send you cash if you don't make a purchase. They send you a club, which only puts them out what it costs them to make it and ship it to you.

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

Check Out: New Topics | TST Blog | Golf Terms | Instructional Content | Analyzr | LSW | Instructional Droplets

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All I saw on the no purchase form was a choice between M5/M6. How do they handle shaft, loft, hand choice??

Bryan A
"Your desire to change must be greater than your desire to stay the same"

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3 minutes ago, TN94z said:

All I saw on the no purchase form was a choice between M5/M6. How do they handle shaft, loft, hand choice??

 I don't think they do. Since it's no purchase, maybe they send you what they want to send you, outside of the generic M5/M6 choice?

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

Check Out: New Topics | TST Blog | Golf Terms | Instructional Content | Analyzr | LSW | Instructional Droplets

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