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New Equipment Company - Where Would You Start?

SuperStroke
Smithfaced said:
Why do you think there is always new companies attempting to get into the ball market? Hopkins comes to mind as one of the latest. Is it the least expensive market to get in to?
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Sure is.
 
Great question! I've thought a ton about this, and still have no really good answer. Unlimited budget? I'd go with shafts. The success of KBS and Oban shows me there is a market for new, innovative shaft companies. I might throw in grips as well, as a company like Pure shows there is something to thinking outside the box. Why unlimited budget? I need to advertise to survive. Dunno if you have to pay more than one player, if that, as KBS shows acceptance comes from good products as much as payment.


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Smithfaced said:
Why do you think there is always new companies attempting to get into the ball market? Hopkins comes to mind as one of the latest. Is it the least expensive market to get in to?
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I heard many moons ago that it only cost around 50 cents or so to make one golf ball. Not sure if it is still like that today but I imagine when you sell them in dozens, you make a pretty penny after awhile
 
I'd probably start in putters and keep to my niche.
 
I think I would start with wedges. In my mind at least I feel like out of Woods, Hybrids, Irons, Wedges, Putters, and Balls, Wedges can fly under the radar as being a top name if they perform for you. Woods and hybrids have covers proudly displaying the brand for all to see. Irons attract attention in numbers. The putter gets noticed by all your playing partners at every single hole. While in my mind wedges can fly under that social radar of display. Maybe making some great wedges could jumpstart a future in many different aspects.

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I would start with the bookend's, driver and putter. I would try and get Mr. Fister and Bruce Sizemore on board. The hardest part I would think is getting space in a major box store so people can try the clubs and buy them.
 
I would start in the FW and hybrid lines. Much like Jesse Ortiz did with the Blackbird line. I think it would be the easiest line to break into and get your name out to expand the line down the road.
 
I want to say Driver but I think one would have to be foolish to think that they can even pretend to contend with the big boys. I can only imagine how much money, engineering, and marketing is behind the Callaway and Taylormade products.

I'm surprised at all the people saying they'd go with a boutique putter to start. I can't help but feel that there are tons of those out there already and I don't think any of them are making money hand over fist.

I think I would start with some kind of specialty fairway wood/hybrid. The trick would be to design something that's every bit as long as the competition but market it as the easiest club on the planet to hit. I still don't know how exactly to market that my product has a few things the competition simply doesn't...pay some key tour Pros a ton of money to game them is probably the best bet.
 
Putters. It is the one area where people deal almost exclusively in the realm of feel. That means technology is not a major determinant (like it is with driver) and people would be most open to trying something - if a club feels good it just feels good. I also think putting is the area where there is the least stigma over gaming something that isn't from one of the big companies. All that stuff gives a newcomer a fighting chance.
 
I would start in hybrids. It seems like the club catagory where its most acceptable to be innovative and stray from the norm but still have it accepted by the masses. They are also more affordable than drivers or irons and could be a good segue into either of those catagories if you could sustain name recognition and sales success. Adams really seems to have had ups and downs all over the traditional club market before settling into their hybrid niche, but if they started from 0 in that niche, everything from that point forward would have to be considered a massive success.
 
Drivers I think - my perception is that is the one club that most consumers believe will change their performance the most. Also, driver is the club that a fitter can demonstrate the greatest improvements with on a launch monitor; with more and more shops attempting fitting, this would be key.
 
JB said:
Sure is.
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I hope I'm not derailing this thread but I'm thinking about this a lot right now. Before I jump too far into my thought process I'll just ask one question of you or anyone else who truly knows the answer: Do golf balls have the highest markup?
 
Smithfaced said:
I hope I'm not derailing this thread but I'm thinking about this a lot right now. Before I jump too far into my thought process I'll just ask one question of you or anyone else who truly knows the answer: Do golf balls have the highest markup?
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In some instances. It depends how its looked at.
People spend a whole lot of money over the course of a year on them.
 
Wedges, I'd start at the green and work my way back. I would create a wedges that could be used and would be wanted by all. I'd give it the character of the best wedges and price it under $100. Custom up to
$150.
 
I'll go a little different here and say fairway woods. Specialty and customized and wouldn't sell anything else. I'd have different head and shaft combos, etc. so I could reach the entire range of skill levels. I'm not sure there is a specialty FW company, yet I believe some of the biggest tech advances have been with them. There seems to be a lot of potential left with FW's, in terms of marketing and innovation. Once the buzz got strong and we had a few successful years, the launch of a driver would be my next move.


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If I was going to go ball, I would go the nonconforming ball route like Polara. Of course, the no slice ball has already been done, so it would have to be something else. It's not entirely about portion of market share if you can set yourself apart and get a decent following.


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JB said:
In some instances. It depends how its looked at.
People spend a whole lot of money over the course of a year on them.
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This is kind of what I was getting at. I buy more balls throughout the year than anything else and it isn't even close. I know Titleist has a lock on this market at the moment but if the profit margin with balls is super high does that really matter? I may be WAY off here but I feel like this was Hopkins deal with balls. They know the ball they provided won't dominate the market anytime soon but if they can produce a cheap product that will make them some cash than why not? They can dump that profit into R&D and get stronger in other areas.
 
Going on a gut reaction here, I'd say grips and shafts - maybe strike up deals with club manufacturers to increase cash flow.
 
I think I'd have to go with putter. I absolutely love the boutique putters like Bettinardi and Machine. I think of high-end putters such as these as golf jewelry, and IMO this is a market that is underserved. Also, the margins are very high, and the volume/marketshare needed to be profitable would be pretty small. Plus I'd get to have _really_ cool putters :)
 
Tough question. I think I would go drivers. I think that if I could come up with some innovations that really help the average player, with the performance needed for tour level players as well, it could be an area things could be shaken up enough to grow the company well.
 
J33R said:
Going on a gut reaction here, I'd say grips and shafts - maybe strike up deals with club manufacturers to increase cash flow.
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^^^^This, especially the grips. The reason being grips are a somewhat disposable type item, like golf balls. You can create something a little unique that would generate some brand loyalty, and people that play a lot replace them periodically. Or put their preferred ones on each time they buy new clubs. You also have the ability to have a good wholesale type business if you can create one an OEM uses on their clubs.
 
My initial thought? Putter Grips. Pure Grips has a great idea with the customization, the color, the logos etc on the regular golf grips, but I would love to be able to offer customizable putter grips in whichever texture/material/color/customization you could do.

Failing that, probably putters. Would love to have a putter I would have designed be brought to market.
 
Putter. Especially if you can bring something new at a premium price - and that's where I think it has to be, something boutique-y. And maybe market in Japan/Asia.
 
ATLGolfer said:
I'd probably start with putters. It is enough of a niche club where you could generate some business early on in the company.
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I agree and history shows many others have agreed over the years as well. Thousands of different putters have been made in the history of golf by hundreds of makers.
 
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