Will increased competition in top end balls put pressure on prices?

[JeffJ]

In the world we live in typically competition creates lower prices. With companies like TM, Callaway, Bridgestone and Nike putting pressure on Titleist for top end balls, do you think we could see these high end balls dip into the $32-37 per dozen range?

FYI, I am thinking of picking up a couple dozen 2007 Nike Platinums for $30.

[golf_junkie27]

No, prices on balls won't drop unless a newer version is released. Even so, some of the higher end balls won't drop, dramatically. The cheapest I've seen brand new Pro V1 and 1Xs, from a retailer, is $44.

As long as the ball performs and is a hot seller, it won't drop in price.

[Trevor07Silvy]

Which is unfortunate. Why are they so damn expensive? Trying to take advantage of a great product that they know people will buy regardless of price is my guess. I won't buy them though, I don't think my game is on right now so I would cry for days If I lost one.

[Caddyshack]

I dont think the top end prices will drop but the mid range Balls will become better (they already have) and there wont be much difference between them... Have you tried the HX Hot Bite for $30 they are pretty dam good and most golfers except the really low markers wouldnt notice a difference between them and a Pro V1. I have a mate who plays off +2 and cant tell the difference!

[golf_junkie27]

Which is unfortunate. Why are they so damn expensive? Trying to take advantage of a great product that they know people will buy regardless of price is my guess. I won't buy them though, I don't think my game is on right now so I would cry for days If I lost one.

I read in Golf Digest that they're more expensive to produce than the average ball. Additionally, the process take a little longer...something along the lines that for every Pro V1 they can produce four of another ball.

I'll look for the article and post it. Thing is there are so many good balls out there. Unless you can really manipulate the ball and are a pure striker, it is tough to tell the difference.

[Pinseeker81]

.....Why are they so damn expensive?.....

For the same reason gas is so expensive right now. Because people just keep buying it.

[TourSpoon]

I think that increased competition will affect top end prices if this new competition can develop a significant market share. That is the key, it has to be significant.

Now with that being said, does anyone remember the days of the Titleist Professional which used to retail at 49.99 a dozen? I was very surprised to see that 10 years later you can get the Pro-V1 for 44.99. I am not sure if this is because of decreased costs in production, decreased demand, advances in competition, or a combination. My guess is that they are cheaper to make than the wound balatas of yesteryear. Anyone have a clue?

[rudygu]

Titleist won't drop their prices because they dominate the market by so much there's no need :

from www.golfbusinesswire.com

Whether the measurement is in dozens, market share, worldwide Tour player and win counts, or usage by average golfers, the momentum and milestones of the Pro V1 are significant: - Over 43% of all Golf Ball Dollars On-Course in 2006, according to Golf Datatech. - Pro V1 and Pro V1x On-Course market share was greater than the collective and combined brand shares of Bridgestone, Callaway, Nike, TaylorMade, Top-Flite and Maxfli in 2006, according to Golf Datatech. - Pro V1 has been the best-selling golf ball model On-Course and Off-Course since March 2001. - Since 2000, over 100,000 players, 900 wins and $1.6 billion in winnings have been recorded across the worldwide professional tours with the Pro V1 golf ball models.

Seems like all the other companies fighting for a piece of the golf ball market would price their balls a little cheaper if they could afford to do so. Maybe they fear golfers will believe their balls are not of the same quality if they are priced lower?

[mikelz]

Titleist won't drop their prices because they dominate the market by so much there's no need :

You'll get the price break on close-out Bridgestones, Callaways and Taylor Mades.

[allin]

I believe 3 things are causing current prices on top end balls to stay high. 1. Marketing costs, losts of high priced TV and print ads for a moderately priced item. 2. Golf shop margins on non closthing items are being pressured by the rapid changeover in golf club models. Giving away your margin on balls to get people in the shop is harder to do. 3. Production costs on soft, multi layer, soft cover balls are higher, more expensive materials and lots of rejects because the balls are more complex and the soft coves are more difficult to get right. If there are no more big advances in the near future, production techniques will improve and competiton will slowly bring prices down. I believe there are signs this is already starting to happen with Drivers.

[BASHERBAKER69]

Reasons for high price:

1 marketing
2 cost of production
3 desire to make big profits
4 defending intellectual property rights/ payments of damage for IP infringement

5 the fact that manufacturers give them away by the bucket load to the tour pros when we mortals pay £10 for a 3 pack.

[SwinginCaveman]

Which is unfortunate. Why are they so damn expensive? Trying to take advantage of a great product that they know people will buy regardless of price is my guess. I won't buy them though, I don't think my game is on right now so I would cry for days If I lost one.

That's what I thought but I found out I was wrong. A show called How It's Made, can't remember what channel it's on, did a segment on Titleist golf balls. They said it's actually very expensive to produce a 3 or 4 piece golf ball and that the profit margins aren't terribly high despite the hefty price tag.

[x-forged]

according to my economics professor, it is a simple example of demand. If demand is high for these top quality balls, then prices will not decline. to lower prices, demand decreases and supply increases, which is a doubtful outcome. Another way to decrease prices in top end balls would involve one high end golf ball dramatically decreasing in price, which would drive prices down of other top end balls, its a competitive market.

[r7 425]

He;s right....its all about demand...if the demand for pro v's stays constant--the price will either stay constant or go up......remember that the ultimate marketing trick is to assume that buyers incorporate high prices for high quality--and thats exactly what the top end ball companies have done...theyve tricked us into buying something that we perceive is top quality just because of the high price....kind of like Lincoln Continentials