What is the mark up on golf equipment?
July 23, 2009 :: Posted by - golf course :: Category - Golf Accessories
Billyum asked:
What is the golf equipment markup you know?
I hear the mark up on golf clubs is close to 300% is this true or is there a more accurate figure. I was also wondering the mark up is on golf bags and balls!
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July 24th, 2009 at 6:58 am
More like 30-40%.
July 25th, 2009 at 8:15 pm
Think about it this way , iron head maybe $5.00 , steel shaft depending on brand $2.00 – $10.00 , grip $1.00 – $6.00 . Driver head $50.00 – $ 110.00 , stock shaft $10.00 , grip $1.00 – $6.00 . Do the math . Big mark up . Buy used for low price & put new shafts in . Save big $ .
July 28th, 2009 at 3:36 am
I would think that it would be very high, especially on the big names(Callaway, Taylor Made, etc..). It shouldn’t cost more than $200 to make the set of $1000 retail irons. For example, lets say Callaway makes the set for 200, sells it to Dicks, for $600 and they sell it for $1000. Callaway makes 60+% and Dicks makes 40%. Sounds like a good business to me, which is why I bought knockoffs on the internet for $150.
July 28th, 2009 at 9:23 am
Well, manufacturers do a lot of marketing, research and sponsorships. Retailers have overhead that they have to pay for. I bet it is pretty much all markup by the time you get it in your hands.
July 30th, 2009 at 12:20 am
I have worked for a major retailer; markup on most hard-lines (golf stuff) is about %300.
We buy it for $100 sell it for $300. It sounds like a lot but its not as much as you think.
August 1st, 2009 at 6:49 am
The markup depends on the season of the release. Say Callaway releases a driver in fall; the initial price will be the same at any retailer because the prices are factory set. Even if you order from a manufacturer, your initial price will be the same. After the next release, a company like callaway will then allow the retailers to lower the price of the older equipment. The USGA also has a say in the price of your club. They set the standard for placing a value on used clubs. The same scenario can be found in mattress sales. All retailers will have the same price until the next new product is released. The best deals you will find will be no tax, or a no cost at purchase deal where you pay later.
August 2nd, 2009 at 10:01 pm
If you are talking about markup at retail, 20% to 40% is the truth. When you buy a TaylorMade or other driver for $399.99. the store paid a bit over $300 for it, plus shipping/freight, plus the cost of the money sitting on the floor til it sells. Bags are about the same. Balls are even less mark up. On a $20 dozen box of Titleist SoLo for example, the store paid over $17.50 for the balls. Not too much profit.
At the manufacturing end, things are different- to a point. Sure, the head may cost $20-$50, the shaft $5-$50, a dollar or two for the grip, for a total far less than the retail (or wholesale price). However, remember that the major brands spend around $250,000,000 to $300,000,000 per year in r&d, plus the expense of pro contracts and all the marketing.
So, in the end, it is not all profit.
August 5th, 2009 at 5:37 am
It’s not 300%, more like 30%. It may be more (percentage wise) for larger stores since they can buy in bulk.
A friend of mine worked for his uncle’s golf course and could order the brands of clubs they carried for wholesale prices. He bought a driver wholesale that had a MSRP of $400 but usually sold for more like $300. The price he paid was $220, which is about a 35% markup, not 300%.
August 6th, 2009 at 4:22 am
Brian G nailed this answer….I am in a managerial role at a golf course and on a $399 driver, we have about 300 in it. On a 299 driver we have 200ish into that as well….