What makes a good golf store?

[trickyputt]

OP, lots of good thoughts already.  I live in the south so Golf is more of a year round thing and even the smaller stores here have struggled.  Locally, there is a store I have bought most of my clubs from. The main reason was because I felt the employees knew what they were talking about and were good with the fitting process.  No range or anything but a hitting simulator area to fit clubs with. etc.  If I went to Dicks, they usually had someone who acted like they did not want to be there, had no real idea on the fitting process, and was only interested in looking busy since sales were slow and they needed something to do. Back to the store I would go to, I started to notice in the past year that when I went in there employees would not go out of their way to introduce themselves to me, seemed to sit behind the counter, if I asked them about the products they did not seem to have a lot of knowledge, etc. I ended up getting fit for a new set of irons by the owner of the store who seemed to only be interested in making the sale instead of really talking to me about the different brands, etc.  It was a deal of what do you want, let me fit you, take your money, and on to the next.  In the past someone would walk me around the selections talking about different brands, etc and then do a fitting. A new Golfsmith store came into town last year and it is nice.  I went in a few weeks ago just to kill some time and I noticed some of the employees at the other store were working there now. These were the better ones that I used to talk to when I got good service from the other store. I asked them why they left and it came down to getting paid more, the other store was really struggling to keep up with Golfsmith and others now, owner was very stressed out, and had created a moral problem around the store.   I got good service at Golfsmith, they had a huge selection of products, several simulator hitting areas, and they have a good fitting system in place.  More than likely, my next big purchase will be there.  Not always the case with those large retailer chains, but this particular one seems to be sold so far.  I am the type that wants the small business to succeed but it comes down to better price, service, product selection, etc.  I am willing to pay a little more if I am getting great service, but when the service level goes down then I am going to where service is the same or maybe a bit better, but prices are lower. JMO, buying into anything golf related right now is a huge risk.  Not something I would get involved in.  The industry is struggling and unless you are in an area with minimal competition and a good customer base that plays golf its going to be a tough road ahead for you.

What you describe is called "The wheel of retailing". Increasing competition begets lower margins, so larger capital investment is then needed to produce enough profit to cover expenses and produce a profit margin that is both larger in the quantity of dollars but smaller in the percentage of margin. It causes loss of smaller entities and loss of regional character of those smaller entities. This is why politicos want to bump up the creation of small business. Other countries like China are on the horizon as the bigger business overtaking the smaller countries like the USA. Walmart has also demonstrated this reality at a local level here. In all cases to my awareness anyway, persons with detail knowledge are able to float up above the commoditization fray, but note that the price to have what you want increases due to the smaller supply and inefficiency of that smaller supply chain given that the lower sales that small channel can support still has to provide living wages To those in it or it will disappear also.

[scorpion12]

I've checked this thread out off and on since it started and I'll throw some thoughts in...

First and foremost I think customer service should come in at a top priority. Example: my wife and I occasionally pass by the perfume counter in one of the department stores in our local mall. There's an independent contractor that has a circuit of stores that occasionally shows up at that store. She remembers us as customers. We might have gone 6 months or more between seeing her the last time but she remembers us, our purchase history, our kids, things we've talked about, etc. She makes us feel appreciated as customers. You need people like that working in the store. It wouldn't hurt if they knew what they were talking about either... if I was looking for a club that was draw biased to help counter act my slice, it would be nice if the employee knew what I was talking about.

I think you should carry product lines that other local vendors don't have. It's not easy to find a set of Bridgestone irons to hit prior to purchase. It's impossible to find them in left hand. I'm not saying you should carry 50% stock in left handed clubs. While that would be awesome for me it would not bode well for your business as you'd have too much capital invested in product you can't sell. But carrying the lesser known brands (but as good as or better than the mainstream vendors) can invite buyers that otherwise wouldn't try the equipment... "We carry Callaway, Taylor Made, Ping, Srixon, Cleveland, and Cobra. We ALSO carry Bridgestone, Hopkins, Coates Golf, Mizuno, Wilson Staff, and Tour Edge. Since you're looking for a driver, I suggest you hit these..." and then steer them to the brands that aren't Callaway and Taylor Made... not that there's anything wrong with any maker but more choice is more better... but pricey and unsustainable to a degree.

I know I'd be more prone to buy something if there's a pretty girl that very knowledgeable in her products flirting with me.

Free lessons, seminars, etc would be nice too. Buy a driver, get a lesson on driving the ball further. Buy a putter, get a lesson on putting. Buy a wedge, get a lesson on chipping.

Free coffee or drinks...

Kind of like Golfsmith but more personal attention.

Have a PGA pro come in and offer tips and autographs.

Have an LPGA pro come in and offer tips and autographs.

Putting competitions.

Custom equipment. Some club makers only offer their wedges for lefties in 3 lofts and 2 bounce grinds while they'll offer 45 different lofts and 123 bounce grinds for right handed players. Offer to customize the clubs for the lefty as part of the sale.

[trickyputt]

I've checked this thread out off and on since it started and I'll throw some thoughts in... First and foremost I think customer service should come in at a top priority. Example: my wife and I occasionally pass by the perfume counter in one of the department stores in our local mall. There's an independent contractor that has a circuit of stores that occasionally shows up at that store. She remembers us as customers. We might have gone 6 months or more between seeing her the last time but she remembers us, our purchase history, our kids, things we've talked about, etc. She makes us feel appreciated as customers. You need people like that working in the store. It wouldn't hurt if they knew what they were talking about either... if I was looking for a club that was draw biased to help counter act my slice, it would be nice if the employee knew what I was talking about. I think you should carry product lines that other local vendors don't have. It's not easy to find a set of Bridgestone irons to hit prior to purchase. It's impossible to find them in left hand. I'm not saying you should carry 50% stock in left handed clubs. While that would be awesome for me it would not bode well for your business as you'd have too much capital invested in product you can't sell. But carrying the lesser known brands (but as good as or better than the mainstream vendors) can invite buyers that otherwise wouldn't try the equipment... "We carry Callaway, Taylor Made, Ping, Srixon, Cleveland, and Cobra. We ALSO carry Bridgestone, Hopkins, Coates Golf, Mizuno, Wilson Staff, and Tour Edge. Since you're looking for a driver, I suggest you hit these..." and then steer them to the brands that aren't Callaway and Taylor Made... not that there's anything wrong with any maker but more choice is more better... but pricey and unsustainable to a degree. I know I'd be more prone to buy something if there's a pretty girl that very knowledgeable in her products flirting with me. Free lessons, seminars, etc would be nice too. Buy a driver, get a lesson on driving the ball further. Buy a putter, get a lesson on putting. Buy a wedge, get a lesson on chipping. Free coffee or drinks... Kind of like Golfsmith but more personal attention. Have a PGA pro come in and offer tips and autographs. Have an LPGA pro come in and offer tips and autographs. Putting competitions. Custom equipment. Some club makers only offer their wedges for lefties in 3 lofts and 2 bounce grinds while they'll offer 45 different lofts and 123 bounce grinds for right handed players. Offer to customize the clubs for the lefty as part of the sale.

So to recap, If you were shopping for a basketball, you would like Michael Jordan to offer you a cup of coffee, over which the two of you would consult about your game, and he would make a firm suggestion to you about which basketball you should consider strongly? Thats a toughie.

[newtogolf]

What you describe is called "The wheel of retailing". Increasing competition begets lower margins, so larger capital investment is then needed to produce enough profit to cover expenses and produce a profit margin that is both larger in the quantity of dollars but smaller in the percentage of margin. It causes loss of smaller entities and loss of regional character of those smaller entities. This is why politicos want to bump up the creation of small business. Other countries like China are on the horizon as the bigger business overtaking the smaller countries like the USA. Walmart has also demonstrated this reality at a local level here. In all cases to my awareness anyway, persons with detail knowledge are able to float up above the commoditization fray, but note that the price to have what you want increases due to the smaller supply and inefficiency of that smaller supply chain given that the lower sales that small channel can support still has to provide living wages To those in it or it will disappear also.

Well thought out post but not really specific to the golf industry.  Unlike many of the products Walmart carries, the golf industry still does a pretty good job in enforcing Minimum Advertised Price (MAP).  Ping, Titleist and Mizuno are very sensitive to retail pricing and discounting.  On current products it's very uncommon to see price variances across stores on equipment from those three manufacturers and while Callaway, TM and Cobra aren't as militant as Ping, Titleist and Mizuno they do discourage retailers from discounting their latest and greatest.

The advantage Golfsmith, PGA Superstore and Golf Galaxy has is their inventory capacity and store sizes.  A mom and pop golf store wouldn't typically have the cash flow to stock a store the size of the big 3.  Clubs are tough enough but when you get into shoes and apparel it can get really expensive to stock all the different brands, options, sizes and colors that the big 3 do.  Another advantage they have is advertising, their one week advertising budget dwarfs what a mom and pop could afford in a year.

A mom and pop needs to really enhance their customer experience if they take on the big 3.  You want your store filled with die hard golfers who want to hang out (and hopefully spend money) with others like them and have a personal relationship with the stores employees.  When I walk into a small business that gets customer service right I don't mind spending a little more.  Big business underestimates how important something as simple as remembering a customers name will go to earning their future business.

[newtogolf]

So to recap, If you were shopping for a basketball, you would like Michael Jordan to offer you a cup of coffee, over which the two of you would consult about your game, and he would make a firm suggestion to you about which basketball you should consider strongly? Thats a toughie.

Having a PGA pro at the store might be a stretch but the rest of @scorpion12 post is pretty accurate imo.  Small business has to blow away the customer experience found in big businesses if they are going to compete.

When I was in my teens my dad would drive 5 miles out of his way, passing many large retail chains and other bait and tackle stores, to go to a bait and tackle shop  where they got customer service right.  All the serious fishermen hung out there, drank free coffee, ate free donuts and shared stories about the ones they caught and the ones that got away.  They also bought all their expensive fishing gear and bait there.

It ended up being one of the largest bait and tackle stores on long island and no matter how big they got, everyone that worked there knew our names when we walked in, poured us a free cup of coffee and handed us our favorite donut.

[turtleback]

What you describe is called "The wheel of retailing". Increasing competition begets lower margins, so larger capital investment is then needed to produce enough profit to cover expenses and produce a profit margin that is both larger in the quantity of dollars but smaller in the percentage of margin. It causes loss of smaller entities and loss of regional character of those smaller entities. This is why politicos want to bump up the creation of small business. Other countries like China are on the horizon as the bigger business overtaking the smaller countries like the USA. Walmart has also demonstrated this reality at a local level here. In all cases to my awareness anyway, persons with detail knowledge are able to float up above the commoditization fray, but note that the price to have what you want increases due to the smaller supply and inefficiency of that smaller supply chain given that the lower sales that small channel can support still has to provide living wages To those in it or it will disappear also.

But the new problem is the 800 elephant in the room, which is the Internet.  Even the guy with the detail knowledge and ability to provide great service gets screwed because so many people are willing to use that expertise - and then go buy the clubs cheaper online.

I would guess that a lot of the change in the owner of that store that @Divotmaker77 described came about because of all the times he spent a lot of time doing all the things @Divotmaker77 missed from previous experiences, but the person didn't buy.

Having a PGA pro at the store might be a stretch but the rest of @scorpion12 post is pretty accurate imo.  Small business has to blow away the customer experience found in big businesses if they are going to compete.

The problem is that

a) that is expensive to provide, while

b) you will never be able to buy in enough quantity to be able to compete with the online sellers and the big box golf stores.  Reconciling small profit margins with freebies and expensive customer service is a tough nut to crack.

[trickyputt]

Both styles of business have advertising budgets. Advertising budgets include coffee and doughnuts, and other alternatives. It is the use of this section of the budget that is most important. Consider advertisement in light of education. For example, I would not carry a normal inventory in a small store, just shafts and parts. There is no way a theme of custom fitting can be espoused and then converted into a off the rack sale. It would be difficult to carry cast heads, but better to carry forged for adjustability and feel. The large box sales have to be ill fitted to increase volume, whereas the custom shop has to be custom to increase margin, and decrease the carry cost of inventory. I am sure a little oem rack sales would serve the custom store, whereas custom fitting is less than profitable in an arena where 15 sets a day go out the door and custom fitting cannot be as productive per hour as a result.

[Seniorhacker]

After thinking about this for a while, I don't think going into golf retail would be a very smart investment.

[newtogolf]

After thinking about this for a while, I don't think going into golf retail would be a very smart investment.

It's a tough investment, especially in a partnership situation if both partners don't have similar financial resources.  If I was going to do it, I'd want to own it on my own so I could control all aspects of the business.

[trickyputt]

My work here is done.

[Shorty]

This is the craziest thread ever on this site.

Rename the thread "How can I go bankrupt within a month of opening my business"

The advice is just madness:

Give away free doughnuts....

Get a well known pro in.....

Remember peoples names.....

Get someone to give free lessons

"Have" famous pros come in

Offer to price match prices that are possibly below your wholesale (non volume) cost .....

Offer obscure items.......

Compete with the biggest revolution in commerce (the internet) with a 20th century business model.

The picture of guys chewing the fat and sipping coffee and eating free doughnuts and then shelling out their hard earned money sounds nice. It isn't reality.

Retailing in this day and age is a tough gig. Golf retailing is very well sewn up already.

Save your money and don't listen to nutcases who think that knowing what they like as a consumer is what will make a retailer successful.

You may as well open a bar and think business is great when it's packed full of people digging the atmosphere and drinking tapwater.

[1badbadger]

This is the craziest thread ever on this site.

Rename the thread "How can I go bankrupt within a month of opening my business"

The advice is just madness:

Give away free doughnuts....

Get a well known pro in.....

Remember peoples names.....

Get someone to give free lessons

"Have" famous pros come in

Offer to price match prices that are possibly below your wholesale (non volume) cost .....

Offer obscure items.......

Compete with the biggest revolution in commerce (the internet) with a 20th century business model.

The picture of guys chewing the fat and sipping coffee and eating free doughnuts and then shelling out their hard earned money sounds nice. It isn't reality.

Retailing in this day and age is a tough gig. Golf retailing is very well sewn up already.

Save your money and don't listen to nutcases who think that knowing what they like as a consumer is what will make a retailer successful.

You may as well open a bar and think business is great when it's packed full of people digging the atmosphere and drinking tapwater.

There's no doubt that the retail golf scene has changed considerably in the last 15-20 years, and the internet has played a big role in that.  But to call consumers "nutcases" because they've suggested ideas that would entice them to frequent a local store... that's madness.  I honestly think any retail business that dismisses what makes customers happy, or doesn't provide the little things that keep customers coming back or doesn't separate themselves from the competition... they are the ones who don't stand a chance at being successful.

I'll admit some of the suggestions are not as realistic as others, but sometimes it can trigger another idea that will work.  I have some first hand experience in this area, and you are right...it's a tough gig, but it can work, and a lot of the examples you listed I have implemented with great results.  I do think it's weak when guys go into their local mom and pop shop and pick their brain and use their launch monitor and then buy the club online.  The old saying still applies..."Price, Service, Quality...pick any two."

[newtogolf]

This is the craziest thread ever on this site.

Rename the thread "How can I go bankrupt within a month of opening my business"

The advice is just madness:

Give away free doughnuts....

Get a well known pro in.....

Remember peoples names.....

Get someone to give free lessons

"Have" famous pros come in

Offer to price match prices that are possibly below your wholesale (non volume) cost .....

Offer obscure items.......

Compete with the biggest revolution in commerce (the internet) with a 20th century business model.

The picture of guys chewing the fat and sipping coffee and eating free doughnuts and then shelling out their hard earned money sounds nice. It isn't reality.

Retailing in this day and age is a tough gig. Golf retailing is very well sewn up already.

Save your money and don't listen to nutcases who think that knowing what they like as a consumer is what will make a retailer successful.

You may as well open a bar and think business is great when it's packed full of people digging the atmosphere and drinking tapwater.

You're right Shorty, I'll run over to all the small retail stores that are doing quite well and share your post with them and let them know what idiots they are.  Stick to golf and shattering the dreams of young hopefuls that want to be pro golfers that's what you do best.

[Shorty]

You're right Shorty, I'll run over to all the small retail stores that are doing quite well and share your post with them and let them know what idiots they are.  Stick to golf and shattering the dreams of young hopefuls that want to be pro golfers that's what you do best.

Would you be prepared to invest your money in a venture using the advice I quoted? all of those things are great in established businesses. They are not sustainable for a new one.

Do you think that kids who are beginners at golf and want to be rich, famous and not work are to be encouraged?  You don't think this "dreams" are narcissistic fantasies?

As I've said, they can get down to plus 4 , then dream.

How many sets of golf clubs do you think you would net to sell to cover your rent when you are "price matching" against the internet?

Do you seriously think that "free doughnuts" will mean you'll sell more clubs that suppliers won't allow you to sell anyway?

How are you going to "have" famous pros turning up to your shop?

I'm all for dreams, but I'm more into reality.

[newtogolf]

Would you be prepared to invest your money in a venture using the advice I quoted? all of those things are great in established businesses. They are not sustainable for a new one.

Do you think that kids who are beginners at golf and want to be rich, famous and not work are to be encouraged?  You don't think this "dreams" are narcissistic fantasies?

As I've said, they can get down to plus 4 , then dream.

How many sets of golf clubs do you think you would net to sell to cover your rent when you are "price matching" against the internet?

Do you seriously think that "free doughnuts" will mean you'll sell more clubs that suppliers won't allow you to sell anyway?

How are you going to "have" famous pros turning up to your shop?

I'm all for dreams, but I'm more into reality.

I am more for reality too, which is why I usually agree with many of your posts but not this one.

The reality is Golfsmith or authorized internet resellers can't sell the current model of Ping, Mizuno, and Titleist clubs any cheaper than I could without risking their ability to sell those clubs.  The rent of a mom and pop store would be significantly less than a Golfsmith, as would labor and overhead expenses.   I don't have to sell nearly as many sets of clubs to keep my doors open compared to the big 3 do.  Golfsmith probably makes more profit on a set of clubs than a mom and pop due to lower negotiated prices, but in terms of sales price, they have no advantage.  Same with golf balls, it's not coincidence that everyone that's authorized to sell the current model of Pro V's sells them at the same price.

Maybe the retail business in Australia is getting hit harder than here in the states which explains your negative outlook, but small business is still the best way for the average guy to have a chance at hitting it big here in the US.

I'm not saying offering free donuts, coffee and knowing the names of your customers will guarantee success but smaller retail stores have to focus on the customer experience otherwise beyond convenience (location proximity) there's no reason for people to shop there.

[Shorty]

I am more for reality too, which is why I usually agree with many of your posts but not this one.

The reality is Golfsmith or authorized internet resellers can't sell the current model of Ping, Mizuno, and Titleist clubs any cheaper than I could without risking their ability to sell those clubs.  The rent of a mom and pop store would be significantly less than a Golfsmith, as would labor and overhead expenses.   I don't have to sell nearly as many sets of clubs to keep my doors open compared to the big 3 do.  Golfsmith probably makes more profit on a set of clubs than a mom and pop due to lower negotiated prices, but in terms of sales price, they have no advantage.  Same with golf balls, it's not coincidence that everyone that's authorized to sell the current model of Pro V's sells them at the same price.

Maybe the retail business in Australia is getting hit harder than here in the states which explains your negative outlook, but small business is still the best way for the average guy to have a chance at hitting it big here in the US.

I'm not saying offering free donuts, coffee and knowing the names of your customers will guarantee success but smaller retail stores have to focus on the customer experience otherwise beyond convenience (location proximity) there's no reason for people to shop there.

That is a well-reasoned response, but how does a mom and pop store get turnover? Most people who play golf buy clubs every few years at best. People who turn them over regularly are more likely to go on ebay or go to RBG, Golfsmith, 3balls etc.

Opening a small golf store, I would think is a guaranteed way to go broke. Even the pros at pro shops sell almost nothing in the way of equipment.

[newtogolf]

That is a well-reasoned response, but how does a mom and pop store get turnover? Most people who play golf buy clubs every few years at best. People who turn them over regularly are more likely to go on ebay or go to RBG, Golfsmith, 3balls etc.

Opening a small golf store, I would think is a guaranteed way to go broke. Even the pros at pro shops sell almost nothing in the way of equipment.

I have done a lot of research on this specific industry as I considered investing in the local golf store I referred to.  I don't have formal statistics but my research and their experiences indicated iron turnover is roughly every three years while wood, wedge and putter turnover is closer to a year, some swap drivers and woods twice a year.   Interestingly lower handicap golfers tend to buy less equipment than higher handicaps.

A golf store cannot survive on new equipment sales alone, there has to be other revenue streams; pre-owned club sales (very profitable), paid fittings, club services (grip, shaft replacement), golf lessons and simulator time rental.  I had no doubt the business I considered investing in was profitable.  The reason I chose not to invest is because there is a significant portion of the business that is cash based which makes it too difficult to track financially as an investor.

A large number of small businesses fail because they know the core part of what their business is selling but fail when it comes to customer service, marketing, financial management, etc.

[turtleback]

I'll admit some of the suggestions are not as realistic as others, but sometimes it can trigger another idea that will work.  I have some first hand experience in this area, and you are right...it's a tough gig, but it can work, and a lot of the examples you listed I have implemented with great results.  I do think it's weak when guys go into their local mom and pop shop and pick their brain and use their launch monitor and then buy the club online.  The old saying still applies..."Price, Service, Quality...pick any two."

That is the problem, as I see it, because now folks can have all three.  Get the service and quality from the store and then the price on the internet.  Until the store closes, that is.

I think a store could work but it would have to be in a high density AND intensity golfing area.  Like a Myrtle Beach or a Coachella Valley.

Maybe as an exercise ask players you encounter where they bought their clubs.  Hmmm, or maybe a poll?