Dicks lays offs all its Pga Pros

[Philly Golf Guy]

One thing I'm curious about; do OEM's have any say on how much clubs should cost? I know there is a suggested retail, but can Dicks dictate sale prices, etc.? Many times, I'd go in and there would be a 3 year set of irons for full price. If they were a deal, I'd consider them, but I saw too many instances of full price for older and outdated models and wondered what they were trying to do.


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[Trout Bum]

One thing I'm curious about; do OEM's have any say on how much clubs should cost? I know there is a suggested retail, but can Dicks dictate sale prices, etc.? Many times, I'd go in and there would be a 3 year set of irons for full price. If they were a deal, I'd consider them, but I saw too many instances of full price for older and outdated models and wondered what they were trying to do.


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Most manufacturers set MAP pricing which a retailer has to sell it for, unfortunately I think it's part of the cause. I understand the OEM's want to maintain brand integrity and they want their retailers healthy but sometimes a little capitalism goes a long way. The herd is thinning.

 

[Drumdog]

Wow....I didn't even know Dick's had PGA pro's in the store. The 3 guys I have talked to in my local store seemed kind of clueless.
Sorry for the guys/gals that got laid off.

 

[Xarraan]

I had 2 friends lose jobs today. Both stores were in the top 10 in sales for the company. Hopefully they can find jobs as pros for local courses that don't have one

 

[fracisco]

After a recent experience at a Dick's, where there was no gear for the other local pro MLB team (with the explanation we only carry local team gear), I ended up at a Sports Authority for a new team cap for my son.

In terms of golf purchases? I'm guilty of being an online buyer. However, I never hit in a store and buy online....I just buy online.....

 

[Paladin]

or any other driver that was new 20 months ago... that's two seasons old. I thought that bit of the quote was odd. It seems like drivers that have been on the shelves for 20 months *should* be selling for 66% off. At least that's what I commonly see pretty much everywhere.

This can be true and still be awful for business. 66% off is taking a loss no matter how you slice it. The problem is that they're pushed to both have full shelves and then empty out their stock before the next release. It's an impossible tightrope to walk unless you live in a vibrant golf community.

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[Wake]

One thing I'm curious about; do OEM's have any say on how much clubs should cost? I know there is a suggested retail, but can Dicks dictate sale prices, etc.? Many times, I'd go in and there would be a 3 year set of irons for full price. If they were a deal, I'd consider them, but I saw too many instances of full price for older and outdated models and wondered what they were trying to do.


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I've noticed the same, I'm guessing they are holding out for the clueless customer who doesn't realize they are an older product that should be discounted

 

[Darren37]

Not surprised. That's retail for ya! Clubs have been overpriced for a long time and all stores are taking a hit. Not just GG and Dick's.

 

[fracisco]

Let's also not forget the Dick's only TM products such as Burner 3.0. Those oddball, price-point items couldn't help with more SKUs on the floor competing against top-shelf recent gear.

 

[Canadan]

I hate hearing about layoffs. It's awful and no one should ever have to go through such a terrible experience.

With that said, dicks sporting goods around my area have been absolutely mediocre for sales and club knowledge, if anyone is even in the area at the time. I really don't think I would blink if I woke up and they stopped Selling golf gear altogether.

 

[ArmyGolf]

This is unfortunate but I have a feeling its only going to get worse.
Online prices are just too good, especially if you know where and when to shop, to be wasting money in a brick and mortar store.
All we have up here is GolfTown and I think they do just fine.

 

[Dgvillere]

One thing I'm curious about; do OEM's have any say on how much clubs should cost? I know there is a suggested retail, but can Dicks dictate sale prices, etc.? Many times, I'd go in and there would be a 3 year set of irons for full price. If they were a deal, I'd consider them, but I saw too many instances of full price for older and outdated models and wondered what they were trying to do.


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Manufacturers pretty much set prices, give you a short story, couple years ago PGA super store couldn't sell Titleist balls. Why?? Because one of PGASS stores sold them for $2 per dozen less than they were supposed to, so Titleist pulled their deal for 2 years.

On a personal note, for a long time I've thought the major golf retailers taking trade ins was a bad idea. Let that responsibility fall to the consumer to resell. Inventory rarely changes in the used bins at most stores, and then you have customers getting new clubs far below cost let alone retail, only to have their used trade in set taking up space and not selling for months, so the stores don't really bring in any real money. Which is why in the article, it reads that driver sales were down by not much but price was down almost 20%.

So yes OEMs (TMaG) need to stop flooding inventory as well, but the trade in market is a big problem I believe because a lot of used sets sit for months on end and bring you as a store no money while the customer gets new stuff which is great for a cheap price but not having that revenue difference is what's killing stores.

 

[Darren37]

In terms of golf purchases? I'm guilty of being an online buyer. However, I never hit in a store and buy online....I just buy online.....

Same here. no need too buy at the local store. Local golf club stores are nice for services but that's what YouTube is for. Online has better prices anyways. Local golf stores are the new Best Buy. I'd rather shop Amazon. Same thing with golf clubs. All of them I have bought online. I review em online and get an idea for the quality and save lots shopping online. Only way I'll shop for clubs.

 

[ArmyGolf]

I'd love to have a brick and mortar store with great selection, helpful and knowledgeable staff, online prices, weekly sales, loyalty programme, demo clubs and top dollar for trade ins but no store could sustain that.

That's why all the small ones will slowly disappear, they just can't afford to be competitive with the online juggernaut.

 

[widespot]

Dicks lays offs all its Pga Pros

The new clubs coming out so fast is crazy. That said, Salsa comes out with a new fatbike every year and they're probably doing ok. It's kinda how retail is these days. I was in a golf shop this spring and I overheard the guy steer his customer towards Titleist and Ping partly because they won't come out with the next thing next month. I buy my **** at the same store usually and they take care of me and know me, I'm looking for a club that fits and I find it crappy to test in the store and buy online.

I love golf and always have. If I had to play with blades and persimmon and Tiger never hit another ball I'd still love it. The main problem is golf is expensive. There are plenty of people who would enjoy it, but with the inequities built into the US economy where are the new golfers going to come from? New golfers is what is needed if the "industry" is going to grow.

 

[T0AD]

From the article:
""We are selling drivers in our stores this spring for $99 that were approximately $299 20 months ago," Dick's CEO Ed Stack said after announcing earnings on May 20."

If they purchased heavy on the Jetspeed line I think they need to look at the analysts they are employing. You could smell a dud from a mile away with that line.

Maybe they shouldn't have gone along with the 'everybody in the damn world wants to buy TM' mantra.
Yeah, they're the big dog. The market has changed and I think everybody is making big dog equipment these days and consumers are seeing that.

I knew the one in North Macon really well. His name was Mike and he gave me and KellyBo our first formal lessons several years ago. Greayt guy but he seemed still young to be retiring this year. Anyways I hate to see folks losing their jobs. I noticed the pro at the Athens store had not been in the last few times I went by there and now I know why.

Good ol' 9 1/2 finger Charlie in South Macon was cool as heck. Me and him got along real well and we'd always banter about the industry and different lines and stuff.

 

[inthehole]

From the article:
""We are selling drivers in our stores this spring for $99 that were approximately $299 20 months ago," Dick's CEO Ed Stack said after announcing earnings on May 20."

Sorry for the pga guys losing their jobs - nothing good to say about that in this economy.

However, this is aimed at the industry, and Dicks by default. Golf equipment just costs too much. To charge $399 for a SLDR driver that's mass produced by the thousands (probably tens of thousands) in China is ridiculous in this economy. If they charged $159 for a new driver, I would have to think hard about buying one. It's reverting to a rich man's sport. That's why most everyone waits a year or two to buy equipment at 1/4 the original cost online or on eBay. Golfnow has gone to $hit - so much harder to find tee time deals than it was even last year.

If the retail industry wants to maintain a working class golf representation and put assess in seats so to speak, they simply must bring prices down.

 

[KeyserSoze]

I bet the HBO Real Sports show tonight should be interesting:

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"Every macro-indicator that we've been looking at for the past 20 years -- rounds played, number of minorities playing, women coming into the game -- all of these things that we tracked says that there's less people playing," Mark King, the former president of TaylorMade who was recently named president of adidas North America, told Bryant Gumbel on HBO's "Real Sports" in a segment that will air Tuesday night. "Young people entering the game after high school, 18- to 30-year-olds are down 35 percent in the last 10 years. So I don't like where the game looks like it's going."


Approximately 400,000 people left the sport in the past year, according to the National Golf Foundation.
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I think as others have pointed out that Dick's vastly overestimated the casual walk-in buyer grabbing clubs from Dick's instead of a dedicated Golf store.

http://www.post-gazette.com/busines...to-buy-Golf-Galaxy-chain/stories/200611140247

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"This time around, the sporting goods retailer decided that certain golfers like a lot of special service and will provide enough business to support a specialty golf retailer no matter what a broad-based retailer like Dick's offers. "There is a smaller degree of overlap of customers than we would have thought," said Edward W. Stack, chairman and chief executive officer."

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....And somewhat unrelated - but IMO - more depressing Macroeconomic news, I really think the Microsoft layoffs were just the start of the bloodbath for the rest of this year. Companies are about to dump more workers across industries (I know mine is for sure as they've been discussing things like "cost transformation" and "affordability" and other corporate think tank created new speak words for "layoffs" for months with a big "date" being quietly put out for early October re-organization.) We already have "re-dynamicizations" and "re-energizations" yearly and this is a company with >25k employees not a small player.

Also, since the 2008 meltdown companies have layed off millions, doubled everyone who remains workload, cut back on benefits, cut back on travel, offshored and outsourced every possible thing, brought in loads of unpaid interns, and they still aren't hitting the mid-long term targets (regardless of current stock prices) their executives/investors/bankers want. Keep your heads up, I think it's gonna get ugly....again.

 

[e1iterate]

I work there in the pro shop as a part time gig to support my golf fund and this is terrible. I'm considering leaving.


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[Franklin51]

Shocking to say the least. Is dicks getting outa golf cause if so a golfsmith or gg would go great here

 

[JRod]

The one by me must not have had a pro. Only guy ever working there is an old guy who has 0 clue about anything golf related.

 

[Wake]

I work there in the pro shop as a part time gig to support my golf fund and this is terrible. I'm considering leaving.


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What function did the pro at your store fill primarily. How much business will your store lose not having him there.

 

[e1iterate]

What function did the pro at your store fill primarily. How much business will your store lose not having him there.

He had been there for 7 years as the PGA pro since that store opened. Helped build the store. I'm just glad this isn't my main job (I manage a bank) because it would burn worse if Dicks was my main gig and not just a once week deal.


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[Xarraan]

What function did the pro at your store fill primarily. How much business will your store lose not having him there.

Ours was booked solid 20th fittings when she worked. I would assume a good bit of revenue will be lost. 2 local courses have already started promoting fittings and trying to attract Dicks customers

 

[grathan]

I've always disliked Dick's because of the minimal staffing they had in the stores going back over 20-25 years ago. Millions in merchandise and some minimum wage kid stocking shelves the only person around to help. They've changed a lot recently. I had no idea they were PGA pro's, just figured they really were golf geeks who knew alot about equipment.