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Greetings!
There are days that I think that the golf equipment
industry is in self-destruct mode.
A few months ago, I described the pricing strategy that
favors the rich multi-national golf conglomerates at the
expense of the hard-working little guys who can't
afford to sell their products below cost on "net 180
day" terms. If you missed that here's a link to
"MAP and Net
Down, What's That All About?"
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Suicide Closeouts
I also described the "suicide closeouts" that the
monster multi-nationals use to flush their distribution
channels at the end of every season so that books
can be balanced and bonuses can be paid.
In past years, the "big flush" came in July and August.
Toward the end of the season the Big Guys emptied
the warehouses with "packaging deals". You buy a
driver; you get a "free" fairway wood. You buy a set of
irons, you get a bag. You buy utilities; you get a "free"
25 gallon gas card. You buy a bag; you get a "free"
pair of shoes.
The ranks broke early this year. My guess is that a
couple of the giants took a look at their inventories and
figured that they can't make their sales numbers in the
recession so they decided that if they were going
down, they'd take their enemies with them.
Callaway and Taylor Made were the first to offer this
year's "gift with purchase". No gas cards this year,
just shoes or a "free" fairway metal.
The call came in on Friday from our Adams rep. In an
effort to maintain a competitive position - and to prove
that Adams can tangle with the gorillas - Adams
started their own "gift with purchase" program - in
their case a free fairway metal with the purchase of a
driver. Since our first loyalty is to our customers, we
want you to know when the "silly season" starts. It
started.
Adams bit the bullet when they priced their first really
big hit - the Adams Speedline driver. The original
target price was $399 - a decent value for a name
brand driver with a "real" shaft. In a fit of competitive
frenzy the Speedline came out at $299. In our opinion,
that's the bargain of the year - for new drivers. By the
way, the Speedline actually delivers a little more ball
speed for most players. Improved performance
claims are true.
So now when you come in to get fitted at the Golf Lab
for your $299 Adams Speedline driver, we can also fit
you with a very nice "gift with purchase". Your choice
of Adams fairway metals.
Here's what they look like:
This is a great deal. This year Adams redesigned
their fairway metal line. It has been a good seller at
the normal retail price: $249. Worth the money. Now,
pay $249 for an Adams fairway metal and get your
Speedline driver almost free with the purchase.
There is a catch. The Speedline driver is almost 46"
long and comes with an unusually light head. To
make it work right for most players requires
adjustment. It needs to be trimmed to playing length
and a little head weight added for most players. While
we're at it, we might as well set the flex, SST PURE
the shaft and see if we can squeeze a little more ball
speed out of the setup with the Balance-Certified
Stabilizer. The same treatment works for the fairway
metals.
We'll do our part to provide a financial incentive and
offer a "Mini Driver Fitting" - just $75 and bundle in the
SST PURE and all of the weight and length
adjustments to match the fitting for another $65 per
club. You'll get a new driver and fairway metal that will
go straight into your bag. Remember if the driver
doesn't deliver better performance for you in launch
monitor testing, we won't let you buy it.
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Now the Bad News
The competitive environment for golf equipment is
unfairly unbalanced. It favors the monster multi-
national conglomerates that buy at the cheapest
prices and can afford to subsidize unprofitable
operations in golf equipment with profits from
moneymakers like golf balls, footwear and apparel.
The small golf equipment companies that don't have
public money cannot afford to compete on price.
Example: Most high quality Titanium driver heads cost
from $125 to $185 at wholesale. Add a high quality
shaft for another $100 and you've got a raw cost that
nearly matches the retail selling price of the
Speedline - not even counting the value of the free
fairway metal.
If low price is your only criterion for your purchase
decision, the small companies will be crushed.
We will never turn our backs on the small, creative
companies that have been the source of so much
inspiration and innovation in the golf industry. In fact
we're going the opposite way. We've rearranged our
displays and brought in extra inventory for display and
to demo. We have added the drivers from KZG, Bobby
Jones, Wishon, Alpha, SMT and Infiniti and when you
come in for a fitting we're going to urge you to give the
little guys a try. There is a reason that the little
companies have been able to survive so far. They
make great products that are worth a premium. Alpha
and SMT continue to dominate the long drive
competitions - because they don't break. KZG has the
best offering of genuine Japanese forgings from any
American company. Infiniti is great with game
improvement and inexpensive cast irons. Wishon has
the best
performing fairway metal that we have found - from
any manufacturer. Let us tell you the story of the
undiscovered gems.
And we'll put in a plug for our own unique services.
When you buy your driver that doesn't match your
swing and you want the flex tested, the length and
swing weight set to optimize performance - and
advanced "tweaking" like SST PUREing and
counter weighting - it's handy to have a custom shop
in the neighborhood to get that done.
Every step of the way we test and measure
performance improvement. You know exactly what
works, why and how much.
If you're looking for clubs that fit, your best deal will
come from a custom shop. We don't charge any more
than the Big Boxes for our Nikes, Mizunos, Adams and
Nickent clubs. When you buy your clubs from the Golf
Lab, we make sure that the length, loft and lie are
correct for no extra charge - factory clubs always
require some adjustment. We'll get you the grips that
you want and make sure they're right.
We respond to difficult economic times. We make it
easy for you to trade in your unused golf clubs and get
your new clubs custom built. We have had a lot of
happy customers lately who found that we could
rebuild a lightly used set of Mizunos, Miuras, Nikes or
KZG's and get a great set of custom irons - for a price
that matches off the shelf. Two weeks later, you'll
never know the difference and you'll have several
hundred dollars to use for something else.
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We think that we saw signs of the recession storm
breaking in March. Our March sales showed a year
over year increase. That was a welcome
accomplishment and we hope that you will find time to
pay us a visit so we can keep that record going. It's
time to have a little fun again. Meantime, we'll keep in
touch with our emails.
Best Regards,
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