Golf pricing retail vs. wholesale

[bong_crosby]

I'm curious if anyone knows what the markup is on golf clubs. I worked in a bike shop for many years and the markup was about 50%, so a bike being sold at MSRP for $3000 cost the shop owner $1500 or thereabouts. I had a guy tell me today that the markup on golf clubs is less than 20%. I find it hard to believe that golf retailers are making a profit on less than 20%. Anyone out there working the floors selling clubs have any insight?

[CrazyXGolfer]

I can;t name Brands, but I know a set of Irons I can get for cost price that will cost me around 700 and it retails for 1400. This is AUD.

[bananas]

cost on the bridge stone e6 is around 18 and they retail for 26.99 on average. (not irons but could help)

[Nike Markiie]

anywhere from 40-50 percent. On ebay if you buy from a trusted seller you can get some sets for 40 percent off. I did....

[bong_crosby]

A little bird whispered in my ear and told that 20% is not too far from the truth and that it's anywhere from 20 to 30 percent. Evidently the markup on golf equipment isn't as high as I'd thought. NOTE TO SELF - don't get in the golf retail business.

[Titleist_ProV1x]

A little bird whispered in my ear and told that 20% is not too far from the truth and that it's anywhere from 20 to 30 percent. Evidently the markup on golf equipment isn't as high as I'd thought. NOTE TO SELF - don't get in the golf retail business.

Golf sales for 2009, 15 BILLION dollars, course fees exceed 18 Billion annually, you might wanna make a new "note to self ", hehe

24 million golfers and growing, 8 thousand of which are professional worldwide

[TinCupTampa]

A little bird whispered in my ear and told that 20% is not too far from the truth and that it's anywhere from 20 to 30 percent. Evidently the markup on golf equipment isn't as high as I'd thought. NOTE TO SELF - don't get in the golf retail business.

You might want to tell that birdie that they are wrong... as a retailer I can tell that wholesale cost on irons is around 50%, wedges are about 60-70%, balls about 90% and apparel 40%... all based on MSRP not MAP.

[motteler621]

how much of a product do you have to buy to be considered for wholesale prices from a manufacturer like Titleist?

[mfgorilla]

I'm curious if anyone knows what the markup is on golf clubs. I worked in a bike shop for many years and the markup was about 50%, so a bike being sold at MSRP for $3000 cost the shop owner $1500 or thereabouts. I had a guy tell me today that the markup on golf clubs is less than 20%. I find it hard to believe that golf retailers are making a profit on less than 20%. Anyone out there working the floors selling clubs have any insight?

That's 100% markup. just sayin...

Retail markups generally tend to be smaller on larger items. That's why the idiots at Radio Shack try and sell you every battery and cable known to man when you buy a DVD player. 20% markup on clubs makes sense, but so does 120% on those fancy tees with the stripe painted around them.

[leezer99]

Remember that margin and markup are two totally different numbers. An item with a 50% markup only yields a 33% margin. I won't even begin to define overhead factors in this thread...

[treebound]

You might want to re-check the bicycle cost ratio. Some brands are nowhere close to a 100% markup. And some web sales of bikes and components are less than what some local shops pay to the wholesalers. The game has changed in the last several years. I help out seasonally in a local shop and times are very tough, I might be taking this season off from the part time gig because of it.

Club prices? I have no idea but I suspect if you check what a shop or outlet is selling last years stuff at you might be close to their cost, and if they've got something on 75% off which is over two years in inventory then consider it a write-off in their books. IMHO, YMMV, yada yada 8-)

[dbuck]

You might want to tell that birdie that they are wrong... as a retailer I can tell that wholesale cost on irons is around 50%, wedges are about 60-70%, balls about 90% and apparel 40%... all based on MSRP not MAP.

A good thing to remember. Wholesale prices to retailers are very often structured that way--a discount off MSRP. The "street price" of many current items are often less than MSRP, but the cost to the dealer is still based on the MSRP.

[bong_crosby]

You might want to re-check the bicycle cost ratio. Some brands are nowhere close to a 100% markup.

Uhhhhh...I still have my log-in ID and password to the site the owner (relative) uses to buy his merchandise. I can get a bike with a MSRP of around $3600 for cost plus 10%, which comes out to $1799.60. Pretty dang close to 100% markup.

Now if you're talking what the retailer will sell it for, that's another story.

[btownb]

I have found the markup on high end bikes to be about 50% as well. I was sponsored by a major manufacturer 5 years or so ago, and while we got a certain allotment a year of frames, you could buy full bikes at cost. I purchased a $3500 model and it came in at under $1600 after tax.

[slide13]

Uhhhhh...I still have my log-in ID and password to the site the owner (relative) uses to buy his merchandise. I can get a bike with a MSRP of around $3600 for cost plus 10%, which comes out to $1799.60. Pretty dang close to 50% markup.

hmmm....this doesn't sound right. I've been in the cycling industry for 10 years and I don't know any bikes that run a 100% markup...would be nice but just not the reality in my experieince with many different brands, especially on the high end.

[bong_crosby]

That's 100% markup. just sayin...

Thanks. Like we used to say in the Air Force, "never do math in public". I had a couple margaritas in me when I posted last night, so I'll use that as my excuse.