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Golf Company Money Makers

SuperStroke
SeeMoreGuy

SeeMoreGuy

They Make 'em. I Buy 'em.
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I was curious...On what product does a golf company make their highest margin of profit? I am guessing it has to be golf balls based on the sheer number we buy and variety availble. Any other thoughts?
 
Gross Margin: Likely drivers and apparel.
But for both, you need awesome brand equity to claim that gross margin.

Polo Shirt @ Old Navy = $19.99
Titleist Golf Shirt @ wherever = $39.99

Pretty much same material cost... but nobody's paying $39.99 for a Tour Edge golf shirt.
 
I would think wood tees have a high profit margin. Logo caps are probably up there for the bigger companies that order a bunch of them.
 
I def. will keep buying golf clothes :good:
 
Has to be balls. Wasn't there a bit in Golf Digest a few years about ProVs. That they only cost around 12c each to make inc packaging.

Edit// And by golf company i assume you mean the manufacturer not the retailer's.
 
One vote for iron sets...
 
I would have to say drivers. You see them start out at $400 when they come out and then like the Dymo line are down to $150 a year later and you know they still aren't losing money at that price.
 
h2ojon said:
I would have to say drivers. You see them start out at $400 when they come out and then like the Dymo line are down to $150 a year later and you know they still aren't losing money at that price.
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That's the answer I would have given
 
h2ojon said:
I would have to say drivers. You see them start out at $400 when they come out and then like the Dymo line are down to $150 a year later and you know they still aren't losing money at that price.
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Do keep in mind that in almost all cases the company has already been paid by retailers everywhere their wholesale cost. So what it drops to has very little to do with their profits. They already got paid a certain amount.
 
JB said:
Do keep in mind that in almost all cases the company has already been paid by retailers everywhere their wholesale cost. So what it drops to has very little to do with their profits. They already got paid a certain amount.
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I agree - I think that drivers are the biggest money-makers for retailers.
 
Remember the OP asked about the highest profit margin, not what they make the most money on. Think about all the things that cost very little to mass produce but the companies sell them for say 10 bucks each. Just think of how much companies make on computer cables, especially when you can buy something for 6 bucks but if they put the word Monster on it it's now 50 bucks, and it does the exact same thing.
 
Smallville said:
Remember the OP asked about the highest profit margin, not what they make the most money on. Think about all the things that cost very little to mass produce but the companies sell them for say 10 bucks each.
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Scotty Cameron pivot(divot) tools comes to mind.
 
I'd be curious to see what the bottom line cost would be for drivers, wedges, irons, hybrids, etc after you subtract out the cost of mateials, R&D, labor, etc....perhaps it'd still be drivers?
 
You also have to consider R&D costs. I think it was Callaway or Cleveland that said they spent 400K in developing new grooves that still turned out to be illegal. Would R&D for a driver cost more $ per day than R&D for a golf ball?
 
how about grips?

those little things can be $8 bucks, and there's really not much tech or innovation going into those things

I bet the profit margin on grips is way up there
 
If you took out the cost of materials and labor then your production costs would be zero. Not sure when R&D would be able to not be included, if that could happen.
 
R&D runup costs through deception?
 
I am going with golf balls, then golf clubs due to the numbers of sales of these two items. Materials, labor, and production costs due to the shear numbers made, and sold have to be lower versus the the end product selling price.

Now if if you throw out the numbers of an item made/sold, then I would have to say, specific for golf, apparel items. Shirts, shoes, pants are so high priced, that they are available/designed for a smaller segment of all the golfers playing golf.

I am just guessing here, but if it has something to do with golf, (imo) the price mark up of any golf related items seems to be much, much higher than anything else the buying public might purchase.
 
provisional said:
I am just guessing here, but if it has something to do with golf, (imo) the price mark up of any golf related items seems to be much, much higher than anything else the buying public might purchase.
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I dont know. Look at basketball shoes. Or designer clothing. There are millions of items that the markup is the same or higher than that of golf.
 
JB said:
I dont know. Look at basketball shoes. Or designer clothing. There are millions of items that the markup is the same or higher than that of golf.
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Gotta go with ya on this one.I used to buy a certain shoe that was carried at a certain shoestore..The exact shoe with a different brand name was $20-30 at other stores.There's a lot of things like this where you're paying extra for the brand not the quality.
 
drivers,no question
 
Smallville said:
Remember the OP asked about the highest profit margin, not what they make the most money on. Think about all the things that cost very little to mass produce but the companies sell them for say 10 bucks each. Just think of how much companies make on computer cables, especially when you can buy something for 6 bucks but if they put the word Monster on it it's now 50 bucks, and it does the exact same thing.
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R&D matters and costs as well...that's a built in cost...as is marketing and other varied promotional budgets the OEM's like to spread around to different corners...the more I think about it, wooden tees might be the answer...
 
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bigvivec said:
R&D matters and costs as well...that's a built in cost...as is marketing and other varied promotional budgets...the more I think about it, wooden tees might be the answer...
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I don't know if it's the wooden ones but certainly the new plastic tees have a high profit margin as you don't get many for the price.I know they last longer but that's only if you can find them after hitting.
 
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