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Dicks lays offs all its Pga Pros

Matthew said:
Off topic (and joking) if you're in Gillette, Wyoming don't you mean 5-6 days away from a golf store?
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That's funny. Seems like 5-6 days. I used to make it to Denver 1-2 times year (6 hour drive). Hit a Golfsmith and Dick's on the way out of town. That would be it for the year. I never bought anything other than wedges because they never had anything I wanted. A number of people disagreed with me but Dick's lost money because they couldn't get clubs I wanted. Is that a huge segment, I don't know? But its a different segment to explore. Not like what they chose to do did well either.
 
After doing some more research on this after the story, I've come to another conclusion:

Dick's didn't do anything very well when it came to golf.

*The didn't have a better selection than Golf Smith or PGA.
*They didn't have a broader selecting of inventory, including backs, accessories, or apparel, than PGA or GolfSmith.
*They didn't have better customer service than any of the other stores.
*They didn't have more--or better trained--professionals than local clubs (and many Dicks PGA guys weren't giving lessons according to research following the article).
*They didn't teach better than local clubs or Golf-Tec.
*They didn't have a nicer environment than local clubs or local shops.
*They didn't have equal to or more hitting bays than Golf Smith or PGA.
*They didn't have better prices than the internet or Golf Smith.

Basically Dicks didn't do anything well compared to their competition. It doesn't mean they did everything poorly, they just didn't stand out. And when customers can't tell a difference between two products, they will only consider price. If you were looking at two identical white coffee mugs and one was $5 and one was $8, which would you buy? Dicks raised their overhead with the PGA and inventory moves, and then positioned themselves to be in a race to the bottom on revenue.

It's a sad, but very informative, case study.
 
Golf courses are closing? Wow, here they getting ready to break ground on the most exclusive club in the city.
 
Vegan702 said:
Golf courses are closing? Wow, here they getting ready to break ground on the most exclusive club in the city.
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I think of it like the housing market. In some places of the US the housing market tanked horribly, while in others it held pretty steady. Same thing has happened with golf courses, some places around the US it has gone down considerably, while in others it's still steady.
 
Good.Shepherd said:
After doing some more research on this after the story, I've come to another conclusion:

Dick's didn't do anything very well when it came to golf.

*The didn't have a better selection than Golf Smith or PGA.
*They didn't have a broader selecting of inventory, including backs, accessories, or apparel, than PGA or GolfSmith.
*They didn't have better customer service than any of the other stores.
*They didn't have more--or better trained--professionals than local clubs (and many Dicks PGA guys weren't giving lessons according to research following the article).
*They didn't teach better than local clubs or Golf-Tec.
*They didn't have a nicer environment than local clubs or local shops.
*They didn't have equal to or more hitting bays than Golf Smith or PGA.
*They didn't have better prices than the internet or Golf Smith.

Basically Dicks didn't do anything well compared to their competition. It doesn't mean they did everything poorly, they just didn't stand out. And when customers can't tell a difference between two products, they will only consider price. If you were looking at two identical white coffee mugs and one was $5 and one was $8, which would you buy? Dicks raised their overhead with the PGA and inventory moves, and then positioned themselves to be in a race to the bottom on revenue.

It's a sad, but very informative, case study.
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Good summary of Dicks lol.

This is part of it I don't understand. If Dicks was the biggest buyer of TM equipment why were the prices there retail? Are they buying at a steep discount to every other company that buys TM equipment? I have a friend who owns a small golf shop in Yuma, AZ and he barely keeps it open as he can't compete with online stores or eBay. Everytime I buy something he asks me what I paid for it, his response usually is I can barely buy that directly from the manufacturer for 10% less then that. He can't compete with these places as the manufacturers give them such deep discounts when buying in bulk I guess. Which brings me back to Dicks, if they are truly the largest purchaser of equipment from TM they are in a position to dictate the market and where they should be pricing this stuff. If they see drivers are selling for $299 instead of $399 online they should lower the price to match or beat these online only stores. They have the volume it appears to crush them but are either hand cuffed by TM with map pricing or for some other reason refuse to do it.
 
Vegan702 said:
Good summary of Dicks lol.

This is part of it I don't understand. If Dicks was the biggest buyer of TM equipment why were the prices there retail? Are they buying at a steep discount to every other company that buys TM equipment? I have a friend who owns a small golf shop in Yuma, AZ and he barely keeps it open as he can't compete with online stores or eBay. Everytime I buy something he asks me what I paid for it, his response usually is I can barely buy that directly from the manufacturer for 10% less then that. He can't compete with these places as the manufacturers give them such deep discounts when buying in bulk I guess. Which brings me back to Dicks, if they are truly the largest purchaser of equipment from TM they are in a position to dictate the market and where they should be pricing this stuff. If they see drivers are selling for $299 instead of $399 online they should lower the price to match or beat these online only stores. They have the volume it appears to crush them but are either hand cuffed by TM with map pricing or for some other reason refuse to do it.
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The problem with that idea is that all of the companies bring out a MAP that authorized retailers need to maintain. If we sell a club below that price, the company will suspend or close an account. Many online retailers may not be an authorized retailer, who knows how they get their stuff, but if they are not impacted by sanctions from the OEM, they can price as they wish.
 
Just saw a Dick's commercial watching Around the Horn. It was focused on golf and they specifically say that they have PGA Pro's at all of their 500+ locations. They may want to update their commercials...
 
I got to know my Dick's pro pretty well over the last year or so. Great young guy, personable, knowledgeable, great customer service. He had just recently gotten married... This must be tough on such a young couple right now. I hope he finds something else soon. I genuinely feel sorry for the guy. Hopefully, Dick's gave these pros some type of severance package...
 
Pkielwa said:
I got to know my Dick's pro pretty well over the last year or so. Great young guy, personable, knowledgeable, great customer service. He had just recently gotten married... This must be tough on such a young couple right now. I hope he finds something else soon. I genuinely feel sorry for the guy. Hopefully, Dick's gave these pros some type of severance package...
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They did, it was pathetic
 
I wonder what happens to the asst pros that were allowed to do their apprenticeships under the pros at dicks ? I'm just appalled and shocked by this. .. Just shocked..

golf is in trouble . More course closures / foreclosures and now this . So sad guys , so so so so sad
 
lmh3 said:
The problem with that idea is that all of the companies bring out a MAP that authorized retailers need to maintain. If we sell a club below that price, the company will suspend or close an account. Many online retailers may not be an authorized retailer, who knows how they get their stuff, but if they are not impacted by sanctions from the OEM, they can price as they wish.
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^^^^^^
Exactly this.
 
That bites
 
fupresti said:
To everyone complain about prices, the cost of a premium end driver is the same it was in the late 90s. Explain why now it is an issue.
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For what it's worth I totally agree with you, but I think with online golf club buying where it is, everyone wants a deal and knows they can get it online slightly used or late in the season.
 
Canadan said:
For what it's worth I totally agree with you, but I think with online golf club buying where it is, everyone wants a deal and knows they can get it online slightly used or late in the season.
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I know. The internet has changed everything. I just remember selling Biggest Big Berthas for 399.00 and we couldn't keep them in stock. Now people see a 399.00 drive and bludgeon marketing people on Twitter for being out of touch.
 
I feel bad for the guys laid off, but I still don't see this as an indictment of the industry.
 
Wake said:
I feel bad for the guys laid off, but I still don't see this as an indictment of the industry.
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We will see , in my area another course filed chapter 11 . And another went from 27 holes down to 18 , 9 holes sold for a housing development . Then the goofy thing , they complained about no business .. When asked why don't you reduce the rates . They responded , " we are looking for a certain clientele and want to keep this semi upscale " . Makes you want to slap your forehead after that one . Lose 9 holes down to 18!, or reduce rates and get more play ? Some of these course owners and management have an ego issue for sure . And need a reality check
 
It sucks for all the PGA pros to lose their jobs but i've never had a good experience at Dicks when looking for golf equipment.
 
ns1189 said:
It sucks for all the PGA pros to lose their jobs but i've never had a good experience at Dicks when looking for golf equipment.
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Agree. Last place I ever bought anything golf related.

But, having grown up and played golf in the days when new clubs came out every couple of years (1970's), today's OEM's are at a loss as to how to make any money, so they come out with a never ending flow of new clubs even though they reached all of the USGA limits long ago. Most of the marketing hype is all BS. You simply can not buy a better game.

Our course record was set in 1968. That says it all about the latest and greatest equipment. The human still has to swing the club.
 
Mystery Meat said:
We will see , in my area another course filed chapter 11 . And another went from 27 holes down to 18 , 9 holes sold for a housing development . Then the goofy thing , they complained about no business .. When asked why don't you reduce the rates . They responded , " we are looking for a certain clientele and want to keep this semi upscale " . Makes you want to slap your forehead after that one . Lose 9 holes down to 18!, or reduce rates and get more play ? Some of these course owners and management have an ego issue for sure . And need a reality check
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Same thing happened to us last year as we were members of a Country Club. They increased their membership fees, added more food purchase requirements/cost to the membership and many folks decided to move on. Great golf course but now I'm a member at one that costs me $2500.00 less than it costs me at the CC. I've heard the CC is struggling these days so I hope it stays a float. Really nice course and folks there.
 
That's the problem with charging full retail. I recently bought my last club from a retail store. Paid full retail. Wanted an upgrade shaft. they charged full retail of the shaft. They didn't even offer the original shaft even though I paid full retail for a full club and not just the head. SO the stock shaft was $0 value?
 
I hate to hear this but I'm not surprised. I'm sure some of the pros had an idea this was coming though. I'm not sure where they will go as I'm not sure many places in my area are looking for one or could afford one at that.

Riding the Tmag wave or anyone manufacturer was/is a terrible idea IMO.

Investing what they did into each store in personnel and equipment considering who is the most likely people to shop there seems crazy to me and bad business sense. Now they are left with hundreds of thousands invested in LM's, gripping equipment, etc that will go to waste or be sold at a huge loss.
 
The next place that has to watch itself is the PGA superstores ( the stand alone and the airport units ) . Talk about ghost towns . Been in a few of these and they were barren every time I visited . Almost like the over head cost more to run than what they bring in .. And the tennis departments in these were even worse .
Next on the watch list to possibly go
 
Every PGA superstore I have been to has been packed. Denver and both in Dallas
 
Mystery Meat said:
The next place that has to watch itself is the PGA superstores ( the stand alone and the airport units ) . Talk about ghost towns . Been in a few of these and they were barren every time I visited . Almost like the over head cost more to run than what they bring in .. And the tennis departments in these were even worse .
Next on the watch list to possibly go
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I've only been to one, but it was packed, and was by far the best store I've been to. I wish I had one closer.
 
Yeah, in Denver the GolfSmith and PGA store are packed and busy. Almost always. Galaxy and Dicks were always much less so, actually, so I'd go there to get balls if I had to during the rush hours because I didn't have to maneuver around people.
 
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