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Dustin Johnson - Free Agent

ddec said:
I don't think what they charge at the store is a result of what they pay their players. But that's just me.
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Completely agree.... Unless you are 1 of the top tier players in a group that the brand uses for its identity it really isn't that much. They get much more off their corporate sponsors than they do off any club companies


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tequila4kapp said:
We don't know how much he gets or wants. One thing for TM is they have to start considering the effect of their sponsorships on club prices. I recall the M1 thread had grumblings about its price. A decent portion of that has to come from paying for all of their staffers. Does that model still work? How much can they spend on staffers?


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People are going to grumble about everything. I think the M1 price point is the same as the 816 Alpha and Cobra King LTD.
 
tequila4kapp said:
Don't they have something like 30 or 40 staffers? I would think they'd build that expense right into every product. I'm honestly not sure how else they would account for that expense.


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they do, but not every staffer of their's is a full bag contract. It's not like their prices have really skyrocketed. In fact they are pretty much in line with others out there.
 
tequila4kapp said:
Don't they have something like 30 or 40 staffers? I would think they'd build that expense right into every product. I'm honestly not sure how else they would account for that expense.


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general and administrative expense, i would think. no different than the cost to turn the lights on at the administrative offices, or advertising, or occupancy expenses. sure, it's built into the product like every other expense.
 
fupresti said:
People are going to grumble about everything. I think the M1 price point is the same as the 816 Alpha and Cobra King LTD.
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i wonder how much the increase in this year's club prices is due to a very impressive "no up-charge" offering of real-deal after-market shafts. no, i don't think oems are paying what the rest of us are paying retail, but they are paying SOMETHING, and it's just another added cost of goods sold.
 
Off the deep end here.....but can you imagine DJ playing Mizuno or Tour Edge Exotics?
 
tbanks5 said:
Off the deep end here.....but can you imagine DJ playing Mizuno or Tour Edge Exotics?
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Nope. Mizuno is probably wishing they could jettison their Luke Donald contract.
 
caeleric said:
general and administrative expense, i would think. no different than the cost to turn the lights on at the administrative offices, or advertising, or occupancy expenses. sure, it's built into the product like every other expense.
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Well, I'm getting this thread sidetracked, but we're saying the same thing - it's a line item expense incorporated into the cost of products they sell. Maybe its not big enough to warrant consideration.
 
fupresti said:
People are going to grumble about everything. I think the M1 price point is the same as the 816 Alpha and Cobra King LTD.
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And I would think that the "no upcharge" shaft options have a whole lot more to do with that than the tour staff payroll.
 
tequila4kapp said:
Don't they have something like 30 or 40 staffers? I would think they'd build that expense right into every product. I'm honestly not sure how else they would account for that expense.


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Do you believe if they cut their staff in half the driver price goes down? I'll be honest and say that just isn't the case.
 
Based on my conversation with a noted tech guy in the industry. The shaft companies are losing out not the OEMs. Less than 10% of the golfing population actually really cares about upgraded shafts. If they wre not offered, people would play the stock option and be just fine.
caeleric said:
i wonder how much the increase in this year's club prices is due to a very impressive "no up-charge" offering of real-deal after-market shafts. no, i don't think oems are paying what the rest of us are paying retail, but they are paying SOMETHING, and it's just another added cost of goods sold.
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JB said:
Do you believe if they cut their staff in half the driver price goes down? I'll be honest and say that just isn't the case.
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Interesting. We can take this up in the banter thread if you'd prefer, but I'm genuinely curious about why other OEM's don't have large staffs if that expense isn't meaningful to the cost of products. Seems like it would be a no-brainer to have a huge staff and get the exposure.
 
tequila4kapp said:
Interesting. We can take this up in the banter thread if you'd prefer, but I'm genuinely curious about why other OEM's don't have large staffs if that expense isn't meaningful to the cost of products. Seems like it would be a no-brainer to have a huge staff and get the exposure.
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Im not going to say its not meaningful, but I dont think the cost of the driver is made up because of the endorsement contracts that a company has. Do you think if Subway rids itself of a bunch of athletes, the $5 footlong becomes $3?

As to the shafts, up until barely over a year ago, this was simply not an option. Callaway bucked the trend with these no cost upgrades and companies are playing catch up. TaylorMade did a great job with the M1 and offering that, but the entire shaft aspect is more about getting people to get fit and an education than it is about a few extra margin dollars. Companies that do not do that, are not going to be necessarily lower priced, but they may not have full fitting carts, shop floor space, etc.
 
Following up on this tangent; it drives me crazy when a company/store offers a ton of no-charge upgrade shafts but doesn't have them in the fitting carts.
 
tequila4kapp said:
Interesting. We can take this up in the banter thread if you'd prefer, but I'm genuinely curious about why other OEM's don't have large staffs if that expense isn't meaningful to the cost of products. Seems like it would be a no-brainer to have a huge staff and get the exposure.
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If I had to guess, the different OEM's might feel like paying certain staffers don't offer as much exposure as they would get if they were to do a different type of advertising approach (print ad, television commercial, etc.). You have to remember that these companies don't just have unlimited budgets to pay for advertising, which is what sponsoring a player is. I mean, if you think about it, how much exposure is the 100th ranked player in the world going to actually give you? Obviously there will be the outliers (Tiger, Phil, etc.) who are just so popular it won't matter what their world ranking is as they will always get the majority of the attention from fans and often television coverage.

In the end, companies are going to go with the advertising that generates the most income per dollar spent, and I'm guessing that's why you don't see every OEM having 40+ staffers.
 
ArmyGolf said:
Following up on this tangent; it drives me crazy when a company/store offers a ton of no-charge upgrade shafts but doesn't have them in the fitting carts.
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Bingo. What's the damn point if nobody can hit them?
 
SkiBumGolfer said:
Bingo. What's the damn point if nobody can hit them?
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I think a lot of this falls on the retailers as well. I know that I have a better shot at selling a product I have in hand versus something I have to order. Therefore I have more inclination to demo and push what I know I can send out the door. If the customer has to order, they may be more likely to walk away and look for a better deal online. It's not right, but it's what is in their best interest.
 
Srixon - just because. Zero rationale


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DJ issues off the course are pretty minor in the sports world. So he failed a drug test big deal. A lot of athlete's are doing a lot worst.

So golf digest said DJ makes 4.5 million off the course in 2013. He has Taylormade, Adidas and Marquis Jet's as his sponsors. I am guessing Taylormade and Adidas is paying him 3.5 million of the 4.5 million.

I could see Nike as a head to toe deal to shove up Taylormade/ Adidas pooper. The only wild card here, is a club brand he really wants to play. Then he could have a apparel only and club sponsor. I think Taylormade needs DJ way more then he needs them, so i see them matching any offer is made. The wildcard with Taylormade is the business is in the tank.

After this long ramble welcome to NIKE DJ
 
ArmyGolf said:
Following up on this tangent; it drives me crazy when a company/store offers a ton of no-charge upgrade shafts but doesn't have them in the fitting carts.
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The retailers in orlando have 75% of the upgraded offered. But o don't know how often customers try even 20% of those offered.
 
esg777 said:
DJ issues off the course are pretty minor in the sports world. So he failed a drug test big deal. A lot of athlete's are doing a lot worst.

So golf digest said DJ makes 4.5 million off the course in 2013. He has Taylormade, Adidas and Marquis Jet's as his sponsors. I am guessing Taylormade and Adidas is paying him 3.5 million of the 4.5 million.

I could see Nike as a head to toe deal to shove up Taylormade/ Adidas pooper. The only wild card here, is a club brand he really wants to play. Then he could have a apparel only and club sponsor. I think Taylormade needs DJ way more then he needs them, so i see them matching any offer is made. The wildcard with Taylormade is the business is in the tank.

After this long ramble welcome to NIKE DJ
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While he is probably one of their top four guys on tour I think they would be fine without him. Jason Day, Sergio, Justin Rose, Martin Laird, Martin Kaymer just to name a few.
 
From the TM's point of view...DJ is pretty good for them, I can't see him going anywhere if there isn't a lot of money involved. Nike...they could afford him.
 
fupresti said:
I think a lot of this falls on the retailers as well. I know that I have a better shot at selling a product I have in hand versus something I have to order. Therefore I have more inclination to demo and push what I know I can send out the door. If the customer has to order, they may be more likely to walk away and look for a better deal online. It's not right, but it's what is in their best interest.
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That's a fair point, and I know most retailers don't have the volume to not only have all the shafts in the fitting carts, but also keep them in stock. I think if they could figure a fast response way to get custom shafts tipped and shipped though, it would probably work OK.
 
Maybe he stays with Adidas but changes clubs


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