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Dicks lays offs all its Pga Pros

Sad to see, but I really think online retailers is the main culprit here. People try in store and then go buy online instead of supporting the business. My experiences at big name stores are disappointing at best. I seem to know more about spin rates and launch angles than the guy that is supposedly there to help me and should be more knowledgeable. Heck one time I was at GS hitting balls on the LM and the guy next to me comes over and says man that sounds sweet, what are your numbers? He takes a look and we started talking ourselves about what would fit me best. I didn't even get any help from a salesperson in this case so I didn't feel bad about not buying the driver. Plus I cant rely on LM numbers hitting into a net. I just can't. I need to see ball flight and I don't know if its really true or not, but I have heard stories about the LM's being altered to show better numbers in store, but thats a whole different discussion.

As far as Dick's at least around here their "fitting" studio is basically a closet with a LM and a net. Not something thats very inviting if you ask me. I never see anyone in their golf area when I stop in. Never.
 
I have been to the golf section at Dick's a million times. I have never been helped by someone who struck me as a PGA professional. I don't buy clubs at Dick's, but have bought clothes and balls there. Every Dick's I have been in seems like the person working in the golf section is trying to discourage anyone from hitting balls. The lights in the bay are off, and they all but pretend it's out of order.

Never bought clubs at Dick's, never will.
 
Sad to read things like this because I never like to hear about others losing their jobs. That being said, I have to admit that I never really go to Dick's to buy golf equipment - generally deferring to Golf Galaxy which whereever I go it is across the street or to Golfsmith. I also tend to see what I can find online and see if I can find it cheaper.
 
tequila4kapp said:
Info is hard to come by. Per one 2008 article manufacturing costs on a "titanium" driver were between $27-$65. That's old data and doesn't include all costs (ie, R&D, endorsements, etc).
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I think this is one of the biggest costs, Dustin Johnson and the others don't swing those clubs for free. Also the workers need to be paid rising healthcare costs, just everything. Sure the cost of materials may be low but the biggest costs are everything else. That's the cost of doing business.

As as for someone saying $399 was the cost of drivers in the late 90's I don't know about that, I think they were more like and $299 and that was usually just the newest Taylormade or Callaway driver.
 
I've never even considered Dicks for golf equipment. That's business for you.
 
jitzy said:
I think this is one of the biggest costs, Dustin Johnson and the others don't swing those clubs for free. Also the workers need to be paid rising healthcare costs, just everything. Sure the cost of materials may be low but the biggest costs are everything else. That's the cost of doing business.

As as for someone saying $399 was the cost of drivers in the late 90's I don't know about that, I think they were more like and $299 and that was usually just the newest Taylormade or Callaway driver.
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this is very true.

70% of the cost of a car is advertising (and everything that falls under that).

The cost of the equipment itself may be extremely cheap - but by the time all the costs associated with the business are over, I bet the profit margins start getting slim.
 
I've only gone to Dick's for golf apparel and golf balls in the past. My friend is a manager at Dicks and he told me that the executive and corporate level guys for Golf Galaxy are also being fired. He said the corporation seems to be cleaning house and trying to get some fresh leaders in.
 
Hopefully people will ditch the big box stores and start supporting their local PGA professional and get the right equipment for their games instead of marketing BS.
 
Sucks for the PGA pros at Dicks - and other golf stores, who will eventually run into the same issue. A huge factor to me is the internet.

I run a welding supply store, and I can tell you first hand how much equipment sales ( welding machines mainly ) that I have lost to on-line sales. People will come in and demo a machine, and end up buying it on the internet. And a problem now is that people just assume the internet is cheaper, when it isn't always. 15 years ago I could make 20% on a welding machine, which would cover all the overhead costs, etc of running a business. Now I have people getting machines for 5% over cost. I match that when I am asked if I can, but I have to direct ship it, because if I need to handle it, etc, there literally is no profit in it. And I can't stock nearly the amount of machines that I used to, because inventory is dollars sitting on the shelf. If it's not moving, you are losing money. Then you add in the fact that nearly all on-line purchases are tax free, where I have to charge 6% in MD - the cards are stacked against us. The only saving grace for my industry is that we sell gases that you can't get shipped. I truly feel, in most cases, we are seeing a swan song of the vast majority of brick & mortar stores. Hell, one the main vendors we use basically stated they were gearing up more for on-line sales. This is just where things are going, and companies will just have to do there best with new strategies, etc to compete. A few will make it, but imho, many will not.

The other thing to remember is the golf industry got really bloated with the meteoric rise of Tiger Woods. They rode him like a race horse and got fat... now that he has become a mere mortal a lot of the casual golfers he brought into the game have moved on to other things. Basically, in some ways, this is a "market correction." It will be interesting to see how much golf is played today compared to rounds pre Tiger Woods.
 
I'm one of those online buyers, so I guess I'm partly to blame for these guys losing their jobs. However it's silly to pay full price for a driver that, in a year or two will be under $50 if you pay attention on eBay. I just can't bring myself to pay full price. For example, the XCG6's came out in 2013, Golfsmith sells the 4-PW for $399 (originally $599). I bought them off eBay and only the 4i had been hit. I paid $130. It'd be insane for me to spend an extra $260 on the same exact product.
 
That article was a very interesting read. I know locally we've seen multiple shops and courses close lately and it's no surprise that big stores like this are failing to push product. Every time I go I'm I see sale and clearance stickers everywhere. Hope they can make some good decisions moving forward that will help this game we love.
 
It's terrible that all these PGA Pros are losing their jobs, however they are in this predicament because of how their high mark up on clubs.
I don't think I have ever bought even one club from any of the big box stores, ever. If they offered some type of $$$ incentive for demoing a club in the store and then buying it there, then they would draw more customers in. I just can't justify paying 50% more in the store for a club.
Even how much DSG charges for golf clothing is crazy, you can't even buy a big name polo for under $50.
 
choppstixxx said:
It's terrible that all these PGA Pros are losing their jobs, however they are in this predicament because of how their high mark up on clubs.
I don't think I have ever bought even one club from any of the big box stores, ever. If they offered some type of $$$ incentive for demoing a club in the store and then buying it there, then they would draw more customers in. I just can't justify paying 50% more in the store for a club.
Even how much DSG charges for golf clothing is crazy, you can't even buy a big name polo for under $50.
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its not not the store marking it up most of the time it's the OEM, the ones that people buy cheaper on ebay are the ones that typically "fell off the back of a truck". Once a year GS does do a demo sale! but they can't put a new never before driver in your hand let you bang 30 balls with it then sell it as new. Most of the retail sales guys I can say all love the game, enjoy playing, but they're hacks like the rest of us. If GS and GG want to keep business it's going to have to be relational, meeting golfers on their turf.

With OEM prices as they are, who is your customer? The guy who plays weekends? The country club member?

If I were GS or GG, quite honestly, it would be mandatory that you go play the game at least once a week, store pays for it, join a group as a single, bring a set of demos out with you so people can hit them outside and not just on a LM. Meet your customers, talk to them, build a relationship.

Buying online only (ebay) is full of fakes, you could put 10 fake Scotty's on there and the weekend golfer couldn't tell the difference of real and fake, he just knows it says Scotty Cameron on it. So change is needed at all levels, OEMs quit pushing product, lower the price points, stores change their business model, and golf courses stop charging $100 a round on weekends.
 
So in summary, the retailer generally provides crap service and the OEMs flood the market with overpriced product (even taking margin for drivers out of the equation, think about $75-$90 Nike polos that are mass produced in Asian sweat shops).
 
Erky said:
I have been to the golf section at Dick's a million times. I have never been helped by someone who struck me as a PGA professional. I don't buy clubs at Dick's, but have bought clothes and balls there. Every Dick's I have been in seems like the person working in the golf section is trying to discourage anyone from hitting balls. The lights in the bay are off, and they all but pretend it's out of order.

Never bought clubs at Dick's, never will.
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My experience as well
 
To me, it stinks of bad planning. Riding the white club boom, but not realizing it was slowing down. Or, they were somehow obligated to purchase larger volumes than they could sell.
 
deuce said:
I'm one of those online buyers, so I guess I'm partly to blame for these guys losing their jobs. However it's silly to pay full price for a driver that, in a year or two will be under $50 if you pay attention on eBay. I just can't bring myself to pay full price. For example, the XCG6's came out in 2013, Golfsmith sells the 4-PW for $399 (originally $599). I bought them off eBay and only the 4i had been hit. I paid $130. It'd be insane for me to spend an extra $260 on the same exact product.
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Deuce

I absolutely have no problem with that. I buy stuff on line at times, and I think this is where things are headed for the large part. I totally think that some of these club prices are out of control. What I generally have a problem with is when people use my time & knowledge, training, service, etc, then go on-line to save money. My time & knowledge is worth money. What is even better is when they do that, have a problem, then come to me. I would rather have the person come to me and say I saw this price on-line - what can you do? I appreciate them being honest, and I will work with them. It may not be quite as low as the on-line price, but they know they are getting the right product. It's not in me to not care what I sell someone, even if they are not willing to pay what is fair for it. In some cases I could substitute an inferior item to get to the price they are looking to pay, but if at all possible, I would rather sell them the better item and make a little less on it. My reputation is worth more than a few $$ in profit. That said, at a certain point, sometimes I just have to walk away.
 
I am sorry to hear that PGA "pro's" lost their jobs, but looking at it from a retail model and what the "Pro's" actually did in-store then it makes good business sense to let them go. we have quite a few Dick's within driving distance of my house and at each one, you have at least one PGA pro as the "manager/co-manager" of the golf section. They were always moderately friendly, but never truly knowledgeable about the equipment/promotions/etc. Most of the Dicks around me also had a hitting bay that was always "being repaired" for some reason or another. So, when you look at the cost of having a salaried PGA pro plus paying them benefits to do minor club work and not give lessons or specific advice vs. having an hourly manager with an affinity for golf who can be trained on grip replacement and simple shaft replacement but most likely makes 1/2 to 1/3 of what the Pro made which way do you think corporate America is going to go to improve profits in light of the reasons shared in the article?

That being said, if the Pro was adding specific value that was relevant to their training (which by reading through this thread doesn't seem was happening) then this was a bad move. I, personally, buy quite a bit of my equipment and have my repairs done at Golfsmith. They're knowledgeable, friendly, and offer advice and service while offering decent prices and have a decent used club section.
 
I think it's also interesting how poorly Dicks marketed this huge expense for them. They've been paying PGA professionals for years in their stores and yet here most of us are-- their ideal customer, making weekly/ monthly golf purchases, and most of us never knew it.

I just oust don't see this one as being all blame goes to "golf".
 
Good.Shepherd said:
I think it's also interesting how poorly Dicks marketed this huge expense for them. They've been paying PGA professionals for years in their stores and yet here most of us are-- their ideal customer, making weekly/ monthly golf purchases, and most of us never knew it.

I just oust don't see this one as being all blame goes to "golf".
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Pretty good point and really - they were sort of underutilized here at least. No lessons, pretty poor fitting, etc. Interestingly enough, the old pro from Dick's took a job as a city pro just this year. Saw him giving lessons a couple weeks ago.
 
The biggest expense to retailers Is the govt. When I seriously looked into starting a business or buying a franchise. I was shocked when I learned a dirty little secret. Across the market Government costs "Gross Business Tax- not really a tax but a title for all the costs that business pays to government" are around 50% of gross income.

When I looked at my cell phone bill at that time costing $39.95 but I was paying $70.00 because of the added government fees at the bottom of the bill.

If taylor made pays the govt half of what they gross, and Dicks pays half of what they gross. Govt is making more than business and we are paying for it.
 
neophyte said:
The biggest expense to retailers Is the govt. When I seriously looked into starting a business or buying a franchise. I was shocked when I learned a dirty little secret. Across the market Government costs "Gross Business Tax- not really a tax but a title for all the costs that business pays to government" are around 50% of gross income.

When I looked at my cell phone bill at that time costing $39.95 but I was paying $70.00 because of the added government fees at the bottom of the bill.

If taylor made pays the govt half of what they gross, and Dicks pays half of what they gross. Govt is making more than business and we are paying for it.
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While I'm with you that government taxes are a joke, and they strangle businesses... I call BS here.

These businesses are not paying 50 pct of their gross income in taxes.

Sent from my SM-N900P using Tapatalk
 
It just seems like bad business planning to me. There are two DSG near me and both are quite different. One has an enormous area filled with clubs that have been sitting forever. One half of the area are older models, with an entire section devoted to Hagen and Maxfli clubs. They have a tiny demo room where the LM doesn't work half the time. The service has always been great, but their stock is always immense and I don't see how they move that many clubs to justify it. At some point, you would think someone would have figured out how to minimize inventory some how. I used to buy most of my clubs here because it was nearby and I didn't know any better.

The other DSG has a small but nice section of clubs, very large hitting bays with better LM's and salesman that are genuinely helpful and don't care how long you hit. The golf section still takes up almost half the store. The pro gave me some very helpful swing tips as well and I generally buy a club or two a season here. I really like this business model, but I don't know if they sell enough to justify the space they take up and the 3-4 staff members solely dedicated to the golf section. Inventory seems fine, but lots of resources devoted to golf equipment again, without any decent sales.

It seems like a money saving move and maybe Dicks realized that most folks coming in usually either don't want, don't know or don't need a PGA pro to sell them golf clubs. I think there are infinitely better ways to handle the situation and am never happy to hear so many losing their jobs due to what looks like lot of corporate mismanagement issues.
 
I know the Dick's nearest to us had a very knowledgable guy. FWIW
 
BIGBALL: If there was a shop in my neck of the woods that had this sort of customer service, I'd reconsider my stance as I'd also be buying a long-term service agreement* alongside the product. As it were, with DSG the minute I walked out the door with my product, I was persona non grata. I can be that with an online store just as easily.

*Fittings, club adjustments, etc.

BIGBALL said:
Deuce

I absolutely have no problem with that. I buy stuff on line at times, and I think this is where things are headed for the large part. I totally think that some of these club prices are out of control. What I generally have a problem with is when people use my time & knowledge, training, service, etc, then go on-line to save money. My time & knowledge is worth money. What is even better is when they do that, have a problem, then come to me. I would rather have the person come to me and say I saw this price on-line - what can you do? I appreciate them being honest, and I will work with them. It may not be quite as low as the on-line price, but they know they are getting the right product. It's not in me to not care what I sell someone, even if they are not willing to pay what is fair for it. In some cases I could substitute an inferior item to get to the price they are looking to pay, but if at all possible, I would rather sell them the better item and make a little less on it. My reputation is worth more than a few $$ in profit. That said, at a certain point, sometimes I just have to walk away.
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