Question on Golf Outlet Stores

[StefanUrkel]

How do they make their margins? Is it from people buying  new clubs on Global golf/mikes outlet?  Is it financially good for them to take trade ins?  Or is that just good when people  buy credit with their old.clubs?  Some other area?

[iacas]

By selling clubs and apparel and things for more than they pay for them.

Not sure I understand the confusion.

[MuniGrit]

On 3/5/2018 at 4:43 PM, StefanUrkel said:

How do they make their margins? Is it from people buying  new clubs on Global golf/mikes outlet?  Is it financially good for them to take trade ins?  Or is that just good when people  buy credit with their old.clubs?  Some other area?

They make it like any store that sales anything. You buy something at a price and mark it up for a higher price.

[onthehunt526]

On 3/5/2018 at 6:43 PM, StefanUrkel said:

How do they make their margins? Is it from people buying  new clubs on Global golf/mikes outlet?  Is it financially good for them to take trade ins?  Or is that just good when people  buy credit with their old.clubs?  Some other area?

The buy in bulk and mark up. For your second question, possibly or anyone in the PGA Trade-In Network. Of course it is financially good to take trade-ins, because in the PGA trade-in network, it only has 2 conditions, Used or damaged. You can say buy a set of irons, at trade-in for like $200, you sell that same set for $450... profit margin. Read the previous three answers to answer the last two questions.