major brands selling separate components ?

DG_1234

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Especially for brands such as Bridgestone or Mizuno, two companies who design and produce fine metal woods but have never gained much USA market sales traction for metal woods, do you think a business model of selling components separately might work ?
Traditionally, for the driver and other metal woods, brands introduce a new head and sell it with a stock shaft . For example, Mizuno or Ping will have a suggested retail of $499 for a brand new driver model. If a consumer wants to have that new head fitted with an aftermarket shaft he must pay $499 for the driver-with-shaft-he-does not want, then pay $350 for an aftermarket shaft. So, he has spent $700 to $800 for a driver and now has a stock shaft he can try to sell for $50. Or, he can order through the brand's custom department, and if they offer the shaft he wants he can pay a $250 up charge for that shaft. In this case he is has paid about $700 or so for the driver, and it has the shaft he most wants.
The above business model seems to be working o.k. for Callaway, Ping, Titleist etc..., but for brands not known for the metal woods (such as Bridgestone or Mizuno), I am wondering if they might have some success just selling only the heads ? For example, if Bridgestone or Mizuno charged $200 for a head that would allow the consumer to buy any aftermarket shaft he wanted
and likely save $200 to $250 (when compared to eating a stock shaft or paying the brand's custom department for an upgrade). At the very least I think this strategy might give Bridgestone , Mizuno, or other brands not known for their metal woods something distinctly different from Ping, Callaway, Titleist.
 
They would lose their ass on margins, plus the amount of people this would attract is minimal to make it even worth it.
 
I wouldn’t mind if every company did this. It would make it much easier for me financially and space wise haha. I think the problem with it though is liability/not being able to control damages done to clubs. What if joe guy goes out buys that mizuno Head that comes with an adapter. He does the club work himself and then all of a sudden the comes flying off or the shaft he bought was damaged by others, etc. most people would take blame but there are enough out there that would blame the OEM some how and expect them to fix it for them.

That’s why many oems won’t sell adapters directly to consumers. You usually have to buy them through other means: eBay, golfworks, having your club builder order it, etc. it’s so the oem doesn’t get blamed for a bad part when some knuckle head glues it/builds it wrong and breaks the club/injures someone else.


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Cobra does a great job selling components IMO
 
They would lose their ass on margins, plus the amount of people this would attract is minimal to make it even worth it.

This is correct. Im not at liberty to discuss component costs, but it is fair to say a manufacturer is not paying retail or even wholesale for them when they are buying as many as they are, especially with a worldwide market.
 
They would lose their ass on margins, plus the amount of people this would attract is minimal to make it even worth it.

For a $499 retail driver what do you suppose is the cost of the head , and what is the cost of the shaft ?
I suggested $200 because I thought that might be a retail price that would allow the brand to make an acceptable profit margin.At $499 retail I would guess the brand's wholesale price (to the retailer) is $250. The brand's landed cost for the driver might be $125. Out of that $125 I am thinking $80 is for the head and $45 is for the shaft. My numbers here are just guesses, but I do think retailing a driver head only for $200
should allow the brand a satisfactory profit margin.
 
I wouldn’t mind if every company did this. It would make it much easier for me financially and space wise haha. I think the problem with it though is liability/not being able to control damages done to clubs. What if joe guy goes out buys that mizuno Head that comes with an adapter. He does the club work himself and then all of a sudden the comes flying off or the shaft he bought was damaged by others, etc. most people would take blame but there are enough out there that would blame the OEM some how and expect them to fix it for them.

That’s why many oems won’t sell adapters directly to consumers. You usually have to buy them through other means: eBay, golfworks, having your club builder order it, etc. it’s so the oem doesn’t get blamed for a bad part when some knuckle head glues it/builds it wrong and breaks the club/injures someone else.


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Were some brand's in the industry to begin selling driver-heads-only I expect the graphite shaft producers would initiate programs where they sell shafts with adapters installed.
 
I think heads only is a bit of dangerous game for the larger manufacturers. Poor installs abound, no warranties honored, and the shaft/grip is where they get their margins. Also, it's an annoying step but reselling shaft pulls isn't the most difficult thing in the world especially where you can order the shaft ungripped and uncut.
 
I think heads only is a bit of dangerous game for the larger manufacturers. Poor installs abound, no warranties honored, and the shaft/grip is where they get their margins. Also, it's an annoying step but reselling shaft pulls isn't the most difficult thing in the world especially where you can order the shaft ungripped and uncut.


I understand that shaft is a good margin opportunity, but if the sales are not happening then do the initial profit margins really matter?
Regarding "poor installs, warranties etc..." I expect that the brands and shaft producers would work together to develop a sensible quality control program.
A company like Mizuno has relatively strong USA market sales for their irons but their metal woods are relatively insignificant.
I think Callaway, Ping, Titleist, TM are likely doing fine with the current , traditional business model for selling their metal wood offerings.
But for companies which struggle to get their metal wood product accepted by retailers and, or, consumers, I think trying the strategy of selling head-only might be worthwhile.
I know that if I could buy Bridgestone's new driver head for $200 I would do so, and then fit that head to a shaft I like.
But I don't want to pay $400 to $500 for a new Bridgestone driver with a shaft I don't want.
From a retail perspective, if the stores had on display driver heads, fairway metal, hybrid heads from Bridgestone, Mizuno, Tour Edge (or any brand that struggles to sell metal woods).........and then a wall of aftermarket shafts from Graphite Design, Aldila, UST, Fujikura etc... the consumer could buy a driver head for $200, a shaft for $250, and he would save $200 to $300 from what it now costs him for a driver with a shaft he likes. Or he could buy a hybrid head for $100, a hybrid shaft for $100, and end up with a finished product that is likely a better performer for him than the $200 hybrid with stock shaft that's in the store today. I believe this type change (from the status quo) could be good for some brands, retailers, and consumers.
 
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I think you are pricing things out as if the manufacturers were paying regular retail. I believe the average manufacturing cost for a driver head is in the low $100 range. Unless they sell direct to consumer any middle man will basically make this unfeasible. Also, there is a notion where if you are low volume, small margins may actually cost you more money. Also, most companies offer a decent selection of shafts so I'm not sure where this is going. Mizuno may offer the fewest options, but I still think you are being a bit unrealistic with the sell price for heads.
 
The problem is most companies stock shaft... is a $5 shaft. So rather than make it sound like a great deal .. 499 and I get the shaft.. you would be looking at 475 maybe.
 
For a $499 retail driver what do you suppose is the cost of the head , and what is the cost of the shaft ?
I suggested $200 because I thought that might be a retail price that would allow the brand to make an acceptable profit margin.At $499 retail I would guess the brand's wholesale price (to the retailer) is $250. The brand's landed cost for the driver might be $125. Out of that $125 I am thinking $80 is for the head and $45 is for the shaft. My numbers here are just guesses, but I do think retailing a driver head only for $200
should allow the brand a satisfactory profit margin.

Having been privy to some pricing models from some various OEMs while working in retail, I can tell you the margins on a $499 driver are ~35-40% and wholesale pricing is closer to $275 on some. Now, the big issue is where the costs are allocated, head versus shaft. I don't know exact costs of those, but I can't imagine that the price for each shaft in a bulk purchase is north of $30. Therefore, you're looking at ~$250 wholesale for the head and, while it sounds nice and all, there's not many of us out there that would drop $350 (40% margin) for a driver head alone, unless you have spare driver shafts laying around. The good thing is that eBay and even here at THP can provide some good listings for heads only on new/like-new heads.

Were some brand's in the industry to begin selling driver-heads-only I expect the graphite shaft producers would initiate programs where they sell shafts with adapters installed.

Callaway Pre-owned does this now. Tons of different shafts with optifit adaptors for sale.
 
I think you are pricing things out as if the manufacturers were paying regular retail. I believe the average manufacturing cost for a driver head is in the low $100 range. Unless they sell direct to consumer any middle man will basically make this unfeasible. Also, there is a notion where if you are low volume, small margins may actually cost you more money. Also, most companies offer a decent selection of shafts so I'm not sure where this is going. Mizuno may offer the fewest options, but I still think you are being a bit unrealistic with the sell price for heads.

You may be right that brands are paying the head foundry "low $100's" for their heads, in which case the brand would want to wholesale the head to retailers for $200, and the retailer would want to charge consumers $400.
I see Matlby-Golfworks currently sells its component driver heads, depending on the model, for $60 to $130, so that company is probably paying its head foundries $30 to $65 per head. The Golfworks stuff is typically not made of the same quality level materials as major advertised OEM brands, so you are probably right about "low $100's factory for major brand driver heads".
 
The problem is most companies stock shaft... is a $5 shaft. So rather than make it sound like a great deal .. 499 and I get the shaft.. you would be looking at 475 maybe.

Your are probably right. Maybe not "$5 shaft" but it could be the stock shafts have a factory cost of only $25 to $35 .
 
They would lose their ass on margins, plus the amount of people this would attract is minimal to make it even worth it.

I agree 100%. The shafts are relatively cheap for OEM’s to buy compared to manufacturing costs on a clubhead. Many OEM drivers offer “good enough” shaft options to satisfy the vast majority of golfers. I don’t see that many golfers with upgrades shafts in their woods and those that have them are often low index high swingspeed players which make up maybe less that 5% of the golfing public.

Another great point already made is eBay and other sellers already offer head only purchases at a big discount. I was able to buy a Srixon Z565 driver head for $180 just 3 or 4 weeks after it was released as a brand new club.
 
. Also, most companies offer a decent selection of shafts so I'm not sure where this is going. Mizuno may offer the fewest options, but I still think you are being a bit unrealistic with the sell price for heads.

I guess "where this is going" is that I thought a different business model/strategy might work for the brands which struggle to have meaningful metal wood sales, such as Mizuno, Bridgestone, Tour Edge, Cleveland etc....
 
I guess "where this is going" is that I thought a different business model/strategy might work for the brands which struggle to have meaningful metal wood sales, such as Mizuno, Bridgestone, Tour Edge, Cleveland etc....

But doesn't that depend on what you determine to be "meaningful", for instance you mention Tour Edge, well, that company has turned a profit every single year IIRC, that tells me they're hitting "meaningful" sales, no?

As far as if that means becoming a market share leader, there are a lot more things that go into play for that, namely sponsorship dollars.
 
But doesn't that depend on what you determine to be "meaningful", for instance you mention Tour Edge, well, that company has turned a profit every single year IIRC, that tells me they're hitting "meaningful" sales, no?

As far as if that means becoming a market share leader, there are a lot more things that go into play for that, namely sponsorship dollars.

I have no idea of Tour Edge total annual revenues, profitability and, or, how those sales might break down by category. I do know that at one time Tour Edge had some popular hybrid clubs and somewhat popular fairway metals.
Mizuno does not seem to be able to get much retail shelf space or consumer acceptance of its metal woods.
Bridgestone, for about 30 years in the USA market has never had significant shelf space or consumer widespread consumer acceptance for any golf products other than balls. A friend of mine was a Bridgestone Golf territory sales rep for decades. He told me that accounts were always ready and willing to buy Precept/Bridgestone golf balls, but that they had little to no interest in buying any Precept or Bridgestone logo clubs.They said they had enough brands for the club categories and only wanted/needed Bridgestone for balls.
I imagine that Bridgestone, Mizuno , Tour Edge, Adams,Cleveland and more, wonder each year how they may go about getting a larger share of the driver market. Adopting a "heads only" and, or, "no stock shaft" strategy might be effective for some companies. At the very least trying such a strategy would give the brand (and its retail partners) a talking point which differentiates the brand from other companies within the industry. And the strategy might also increase consumer awareness for participating shaft brands.
 
I have no idea of Tour Edge total annual revenues, profitability and, or, how those sales might break down by category. I do know that at one time Tour Edge had some popular hybrid clubs and somewhat popular fairway metals.
Mizuno does not seem to be able to get much retail shelf space or consumer acceptance of its metal woods.
Bridgestone, for about 30 years in the USA market has never had significant shelf space or consumer widespread consumer acceptance for any golf products other than balls. A friend of mine was a Bridgestone Golf territory sales rep for decades. He told me that accounts were always ready and willing to buy Precept/Bridgestone golf balls, but that they had little to no interest in buying any Precept or Bridgestone logo clubs.They said they had enough brands for the club categories and only wanted/needed Bridgestone for balls.
I imagine that Bridgestone, Mizuno , Tour Edge, Adams,Cleveland and more, wonder each year how they may go about getting a larger share of the driver market. Adopting a "heads only" and, or, "no stock shaft" strategy might be effective for some companies. At the very least trying such a strategy would give the brand (and its retail partners) a talking point which differentiates the brand from other companies within the industry. And the strategy might also increase consumer awareness for participating shaft brands.

I have to play some of this close to the vest, but I will ask you this. If a store is not willing to buy drivers, when most are based on the rack system, why would the same store be willing to by heads, where shelf space would be needed and not racks? Companies saw that consumers wanted better and more shaft options and Callaway, TaylorMade and others came a few years ago with upwards of 20 no upcharge choices. The general golfing public voiced opinions that that was too many (in a number of ways) and it has settled on a handful or a few more than that as choices.

Living in the internet equipment bubble that we do, the shaft is a hot topic, but sadly outside of that bubble, these small brands and exotics shafts are of little interest to the masses.
 
I have to play some of this close to the vest, but I will ask you this. If a store is not willing to buy drivers, when most are based on the rack system, why would the same store be willing to by heads, where shelf space would be needed and not racks? Companies saw that consumers wanted better and more shaft options and Callaway, TaylorMade and others came a few years ago with upwards of 20 no upcharge choices. The general golfing public voiced opinions that that was too many (in a number of ways) and it has settled on a handful or a few more than that as choices.

Living in the internet equipment bubble that we do, the shaft is a hot topic, but sadly outside of that bubble, these small brands and exotics shafts are of little interest to the masses.

Yep, and we in the bubble often forget that these drivers coming out are paired with a specific stock setup to hit the largest portion of that bell curve. The tinkerers like us are by FAR the minority. Most want to buy a club off the shelf, and go play it.
 
Yep, and we in the bubble often forget that these drivers coming out are paired with a specific stock setup to hit the largest portion of that bell curve. The tinkerers like us are by FAR the minority. Most want to buy a club off the shelf, and go play it.

Exactly this on custom shafts. I know many avid golfers who have never played anything outside of the no-charge stock shaft offerings. Somebody like me having 7 different shafts for my Epic SZ driver is very tiny part of the market.
 
Exactly this on custom shafts. I know many avid golfers who have never played anything outside of the no-charge stock shaft offerings. Somebody like me having 7 different shafts for my Epic SZ driver is very tiny part of the market.

It's possible that a brand could "sell the story" of aftermarket shaft benefits, thereby increasing consumer awareness.
 
It is very hard for a small brand to sell club heads. Now the ask is that they educate on shafts too, all of the while other companies will come with options for a fraction more where they are touting the shafts? Dollars and cents it just does not work. The good news is this is readily available with the internet or if someone wants to go down the path of aftermarket shaft options, that is readily available with fitting studios.

Unfortunately the idea of buying a head for half price because it does not include the shaft is impossible based on what each piece costs.
 
I have to play some of this close to the vest, but I will ask you this. If a store is not willing to buy drivers, when most are based on the rack system, why would the same store be willing to by heads, where shelf space would be needed and not racks? Companies saw that consumers wanted better and more shaft options and Callaway, TaylorMade and others came a few years ago with upwards of 20 no upcharge choices. The general golfing public voiced opinions that that was too many (in a number of ways) and it has settled on a handful or a few more than that as choices.

Living in the internet equipment bubble that we do, the shaft is a hot topic, but sadly outside of that bubble, these small brands and exotics shafts are of little interest to the masses.

It's just a matter of evolving, trying a different strategy etc...OEM brands as well as retailers should be open to trying new and different initiatives.
The traditional "racking inventory model" may work o.k. for Callaway, Ping, TM but not so well for some other brands.
Yourself (and others here) are absolutely correct with your comments about average players or "the masses" not being aware or interested in aftermarket shafts. But a new and different merchandising strategy (heads only) might be good for some OEM brands, participating shaft brands, some retailers, and consumer awareness.
 
It's just a matter of evolving, trying a different strategy etc...OEM brands as well as retailers should be open to trying new and different initiatives.
The traditional "racking inventory model" may work o.k. for Callaway, Ping, TM but not so well for some other brands.
Yourself (and others here) are absolutely correct with your comments about average players or "the masses" not being aware or interested in aftermarket shafts. But a new and different merchandising strategy (heads only) might be good for some OEM brands, participating shaft brands, some retailers, and consumer awareness.

Anybody that spends time on THP, knows I am ALL ABOUT new strategy.

The strategy has to work though, and in this instance it's one that won't for those brands. Golfers don't love change. Then add in not only the cost of education to both the consumer and store, all the while competing with your other partner the fitting center and its a recipe that has no chance of success in the current climate.

The easy way to look at it is assume that you are buying the club head for X amount of dollars and they are giving you the shaft for free. If you want just the club head and think you can recoup dollars selling the shaft or trading it in, that is great, that's a win. If a brand were to try this in partial, don't forget their cost of drivers would have to go up of course, because they would be purchasing less shafts, which means more cost per shaft.

There will be a day and age when components are available and maybe not in the too distant future. Fitting has to become more prevalent than it is by a HUGE margin however. An interesting side note is that you mentioned in another thread that 3rd party golf stores would all be gone with in 5 years, so if that is the case, would a retailer really want to spend the time, energy and money on more stock (you have to also have a lot of shafts available) and education?
 
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