TaylorMade M5/M6 Contest

[Zippo]

6 hours ago, iacas said:

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?)

I would imagine there would also be some sort of tax write off for TaylorMade in the event Rory wins. I sent in my paperwork so "Go Rory!".

[Ty_Webb]

28 minutes ago, iacas said:

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.

The big picture is they’re not going to be out anything. They’ll make a profit win or lose. The size of what it costs them and how big the insurance cost is is irrelevant so long as they get back more than they spent. In any case it’s a function of how many clubs they sell. If it’s 40,000 clubs instead of 10,000 then maybe the $5.9 million is right. Again it doesn’t matter. It matters to TaylorMade because they need to figure out exactly the exposure. We are not privy to any of those numbers so we make them up and they tell the story. You’re buried in the weeds. 

[iacas]

Oy.

They're not really going to come out ahead. It's a marketing ploy. They'll sell a few extra drivers or get the big PR boost of giving out a bunch of refunds. The insurance policy will cover some or most of their exposure, but they're not actually gonna gain on this. Just the extra $ from some extra drivers sold… which might not even cover the cost of the insurance policy.

[TN94z]

23 hours ago, iacas said:

 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?

I’m thinking the same. I may go back and see if they get one in I’d like to have and buy it. If not, oh well...I’ll take what they send and replace the shaft or sell.