Are Golf Clubs Too Expensive?

[ChetlovesMer]

5 minutes ago, Lihu said:

Could you add a choice like “get properly fit for $150 to $200 then buy the clubs accordingly”?

It’s not likely you need to spend $3000 on a set of irons doing that?

So, I also put “Something Else “

Can you tell me how that's different from the second option? I'm not trying to be a jerk, I just want to make sure I understand what you are going for. You spend $150 to $200 on the fitting and then you seek out the type of clubs you want matching that fitting? Did I get that right? 

[iacas]

1 minute ago, ChetlovesMer said:

Can you tell me how that's different from the second option? I'm not trying to be a jerk, I just want to make sure I understand what you are going for. You spend $150 to $200 on the fitting and then you seek out the type of clubs you want matching that fitting? Did I get that right? 

There's no fitting in my case.

[Lihu]

1 hour ago, ChetlovesMer said:

Can you tell me how that's different from the second option? I'm not trying to be a jerk, I just want to make sure I understand what you are going for. You spend $150 to $200 on the fitting and then you seek out the type of clubs you want matching that fitting? Did I get that right? 

Not really, someone could buy an off brand or other club after getting a professional fitting.

Fitting is different than trying out clubs on a launch monitor at your local big box store. A good fitter will accurately give you all your stats. Some people like Erik already know their parameters and don’t need a pro fitting.

Arguably, a very well fit club could be worth more to you than getting the latest stuff.

[cooke119]

Was in Dicks Sporting Goods the other day, I still have a hard time with a set of irons costing over $1000. Maybe they are worth it but not for someone with my skill level. And yes, if I am in the market, which I am not, I would buy a two or three year old set of clubs, (unused). I usually search eBay when I'm looking for something.  

[Lihu]

2 hours ago, cooke119 said:

Was in Dicks Sporting Goods the other day, I still have a hard time with a set of irons costing over $1000. Maybe they are worth it but not for someone with my skill level. And yes, if I am in the market, which I am not, I would buy a two or three year old set of clubs, (unused). I usually search eBay when I'm looking for something.  

OTOH, you could look really cool and fashionable duffing your way to the green. 😁

[tinker]

Clubs are too expensive when you look at what you get. An 800 dollar set of irons is now 6 clubs instead of 8. They changed the numbering so you need to buy a couple more wedges and or hybrids. What they sell as tech is really just ways to make clubs using glued on plastic crap and screws and weights instead of top quality hand crafted products. Drivers are a frame with a welded on sheet metal face and in many cases a bunch of glued on plastic crowns and pieces. Yes they perform good but with the lower material cost and automated cheap overseas labor the production cost savings should be passed on to the consumer. 

[3jacker]

Indirect costs count too.

The marketing and endorsements do not come cheap. Most of the cost/unit is indirect.

$18 worth of material

$10 worth of pitiful, oppressed, exploited labor

$ 6 shipping overseas

$200 paying Rory/Tiger/Rickie/Dustin et al

$200 other marketing

 

[ChetlovesMer]

Okay let’s dive into this.

I’m going to use Callaway 2017 numbers because they are readily available.

Callaway 2017 total sales = $1.05 billion USD

Cost of goods sold = $565 million USD

R & D costs = 36.5 million USD

Marketing costs = $270 million USD

Percent sales by product:

              Woods                                             $308 Million USD

              Irons                                                 $251 Million USD

              Balls                                                 $163 Million USD

              Putters                                             $85 Million USD

              Gear/accessories/other               $243 Million USD

 

So, Callaway spends about 26% of revenue on marketing… Interestingly enough, that is EXACTLY the United States average spend on marketing for B to C (business to consumer) manufacturers.

So, if you are going to complain that golf club manufacturers spend too much money on marketing and product endorsements, you also need complain that Miller Lite spends too much on marketing, that Chevy spends too much on marketing, Pepsi, Hasbro, Apple, Samsung, etc… etc… etc… 

 

So, to break it down even further. Let’s say Callaway spent NO MONEY on marketing (ridiculous to assume for a B to C company, but okay.) Now instead of charging $500 for that new driver, they could instead charge $370 for that new driver…. ASSUMING everything else remains exactly the same… which it won’t without marketing sales will drop. Fixed costs will remain the same and be amortized over fewer drivers. If sales drop 13-14% due to a lack of marketing, because of Callaway’s fixed costs the price of the driver will actually go UP.

So, does that money they spend on marketing raise sales by at least 13-14%??? My guess is “yes”.

 

Do golf clubs cost too much? …. That’s still a personal choice. If you feel they cost too much, don’t buy them. But if you are going with the “all the cost goes into paying endorsers, theory.” That’s simply not true, at least for Calloway, their numbers are easily available. They spend EXACTLY the right amount on marketing, which includes product endorsements.

[Vinsk]

On 2/28/2019 at 9:56 AM, tinker said:

Drivers are a frame with a welded on sheet metal face and in many cases a bunch of glued on plastic crowns and pieces. Y

This is like saying a Fender Stratocaster is just a piece of wood with vibrating metal strings.

[IowaGreg]

People will spend their money on the hobbies they enjoy.  Fishing, 30K+ on a bass boat set up, rods, reels, lures, gas, Depth finders, and have to have that 50K pickup to pull the boat.  How about the guy that loves racing.  How many different kind of racing is there out that that people sped big $ on.  500K class A RVs.  How about the people that spend thousands when their hobby is a casino.   When I moved to Iowa from North Carolina, I spent over 3K just getting outfitted for the hunting here which is a lot different than NC.  Most of it in quality cold weather gear.   In the last year, I spend about $1500.00 for new clubs (and whining because I haven't been able to use them yet... LOL )  Drop in the bucket compared to some of the other things I could be doing.  I'm hoping that these clubs should last be about 8-10 years.  Everyone has to pick the things they want to spend their money on.  You can spend under 150.00 and get a full set to use and enjoy yourself on the golf course and for some that is all they ever want. 

 

[3jacker]

Best marketing I've seen thus far, aside from Apple, has been YETI rotomolded plastic coolers.

As Chet points out above, golf equipment manufacturers are actually on par with beer and electronics, etc. 

But YETI.  Man, they nailed it.  Selling a "lifestyle" that you wish to reflect, as well as the fact that you have disposable income, via your cooler.

Golf has to have something like that in the works. Can't quite figure out what it is, but it's coming.  

 

[boogielicious]

51 minutes ago, Vinsk said:

This is like saying a Fender Stratocaster is just a piece of wood with vibrating metal strings.

For some, it is!

The tech that goes into guitars is equally as intricate as drivers. And yes, you can hear and feel the difference.

[klineka]

34 minutes ago, 3jacker said:

But YETI.  Man, they nailed it.  Selling a "lifestyle" that you wish to reflect, as well as the fact that you have disposable income, via your cooler.

Golf has to have something like that in the works. Can't quite figure out what it is, but it's coming.  

It's already here. PXG.

[3jacker]

Lol. Yup.

[Vinsk]

1 hour ago, 3jacker said:

Best marketing I've seen thus far, aside from Apple, has been YETI rotomolded plastic coolers.

As Chet points out above, golf equipment manufacturers are actually on par with beer and electronics, etc. 

But YETI.  Man, they nailed it.  Selling a "lifestyle" that you wish to reflect, as well as the fact that you have disposable income, via your cooler.

Golf has to have something like that in the works. Can't quite figure out what it is, but it's coming.  

 

I don’t think golf clubs in general are too expensive based what I get out of them and my crazy passion for golf. But Yeti? I gotta agree with ya there. I got both a Yeti coffee mug and a cooler as a gift. Absolutely no difference from same items that are a fraction of the price. Pure hype.

[dennyjones]

I'm going to say No, the clubs aren't too expensive.   When I was younger, I raced Motocross and during that time decided to get into scuba diving.   Maintenance on a dirt bike after a race can get very pricey.  Golf clubs pale in comparison to some other hobbies.    If my hobby was crochet or knitting, I probably wouldn't spend as much but we are willing to spend what is necessary to enjoy ourselves. 

[ChetlovesMer]

29 minutes ago, dennyjones said:

I'm going to say No, the clubs aren't too expensive.   When I was younger, I raced Motocross and during that time decided to get into scuba diving.   Maintenance on a dirt bike after a race can get very pricey.  Golf clubs pale in comparison to some other hobbies.    If my hobby was crochet or knitting, I probably wouldn't spend as much but we are willing to spend what is necessary to enjoy ourselves. 

My mom crochets and knits and you'd be amazed what she spends on the hobby. Custom yard this, a class for that, she literally has a dozen Sterilite Tubs full with different yarns and the like. She's travelled to all kinds of places in search of certain yarn for certain projects. She's even taken a "knitting cruise". I kid you knot... get it "knot" … knitting... see what I did there? 

[Foot Wedge]

You can honestly make it relatively inexpensive.  You can either try out a bunch of stuff and see what you like or get fit for new clubs.  Then if you know what you like, you can do your own clubwork.  Take a look at what a shop charges vs what it costs to do it yourself (after the sunk costs of the equipment) and it's ridiculous.  $3 to change a grip which costs at best $0.25 between tape and solvent, even less if you're blowing them on.  I'm starting with regripping and then I'm thinking I may get fit for irons in the next couple of years then just put together my own from there.  I'll practice in the meantime with some old beater clubs.

I also like shooting and guitar.  You can also drop a mind boggling amount of money quickly with either of those.  Shooting is like basically throwing a quarter down range non-stop, guitars are expensive but amplifiers are absurd, though at least I can play the guitar without being charged for it.

I'm sure some of y'all are into photography...phew.  My fiance is into it and the equipment is ridiculously expensive.  I egg her on to upgrade lenses and whatnot so that way it makes my equipment look like children's toys.