Golftown Re-Grip Event

So Golftown is having their annual Re-Grip Event again.
40% off...(used to be 50%)
$2.50 to regrip....(used to be $1.00 and $1.50)
Only on selected grips...(used to be on a wider variety of grips. Now they exclude most of the popular grips).
I was about to spend about $150 on grips and regriping, but now will only be spending about $30.
A company that is struggling should be doing alot more to stimulate sales.
They used to have better deals, bigger demo events, etc.
I noticed that Golfworks has better prices on grips than Golftown (although their re-gripping cost is $4.50!!!!).
You would think Golftown would have better prices due to volume buying???
I hope the new owners will have a better strategic plan to sustain Golftown
I very rarely buy anything at Golftown anymore because I find better deals or what I want on Ottawa Golf, GolfAvenue, Ebay or Amazon, etc

UPDATE: 2016/01/12 2:21 pm Website now shows 40% off most grips. Sent them an email earlier. Maybe they just noticed the error??? I guess I'll spend my $150 now!

There are very few, if any, deals at Golftown. I used to spend $500+ on Boxing Day when merchandise was marked down anywhere from 50-75% off. This year, despite having a gift card, I didn't spend a cent.

Just thought I'd add my 2 cents, because posts like this frustrate me. Literally everything in this world cost more than they did 10 years ago, like when GolfTown's grip sale first started. So not too sure how you think the deals should be the same...or that they'd be able to stay in business with 50-75% off but those types of deals are just unrealistic nowadays

If you are member of Executive Golf you get 1/2 price labour at Golfworks

$2.50 is ridiculous as a labour charge, just stand near them when they change a grip, it literally takes a minute for them to change a grip. So let's say 15 minutes for an entire set, that's like paying a lawyer to change your grips. I get going to 40% off for grips but to up the price to change the grip going up by 80% is gauging IMHO.

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Originally Posted by leftylucas

$2.50 is ridiculous as a labour charge, just stand near them when they change a grip, it literally takes a minute for them to change a grip. So let's say 15 minutes for an entire set, that's like paying a lawyer to change your grips. I get going to 40% off for grips but to up the price to change the grip going up by 80% is gauging IMHO.

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just change them yourselves - easy peasy. I am sure they are much faster than me but there is no way I could change a grip in 1 minute or even close, especially if you are removing the old tape.

And it's not just their time, you are paying for their shop, costs of running it, supplies to change grips, and other overhead. I am sure little profit is made in doing this. The goal is to get people into the store in an otherwise dead time of the year so hopefully they make other purchases.

I do it myself, like you said Jeff, super easy, you're right, I did not think of supplies cost so gauging may not be the right term but 80% increase in cost is way too much. If the goal is to get people in there they should re-think things, you actually discourage people from ever going to the store when the cost is significantly increased like that. So let' say an oil change is $50 and all of a sudden the garage puts the price up to $80, I think most people would find another garage to go to

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Originally Posted by leftylucas

I do it myself, like you said Jeff, super easy, you're right, I did not think of supplies cost so gauging may not be the right term but 80% increase in cost is way too much. If the goal is to get people in there they should re-think things, you actually discourage people from ever going to the store when the cost is significantly increased like that. So let' say an oil change is $50 and all of a sudden the garage puts the price up to $80, I think most people would find another garage to go to

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I actually think $2.50 is fair. Golfworks charges $4.50. The guy that used to do mine (in his basement) before I learned how to charged $2 a club, and that was 5+ years ago.

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Originally Posted by calleygolf

Just thought I'd add my 2 cents, because posts like this frustrate me. Literally everything in this world cost more than they did 10 years ago, like when GolfTown's grip sale first started. So not too sure how you think the deals should be the same...or that they'd be able to stay in business with 50-75% off but those types of deals are just unrealistic nowadays

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Sure things cost more. It's all relative. You can still offer good discounts with the cost of new clubs today...just like 'ten years ago"....especially given their prices. Most retail items have large profit margins (furniture, clothes, etc). You see big savings in the states because they know how to market and sell. Manufacturers need to get realistic with their prices given they introduce new clubs every year. Also, they need to adjust to a declining golf market clientele. They would definitely sell more new Drivers if they priced around $200-$300 (really, how much does it cost to manufacture a golf club). As far as $2.50 labour to replace grip...this is understandable due to inflation and wage increases.

2.50 times 14 is 35.00 plus taxes almost 40.00. Part time employee at 12..00 per hour and lets give the time at 1/2 hour for 14 clubs. That makes approx. (35.00-6.00) 29.00 on the plus side for the store. Cost of material is almost nil---tape is 2 sided carpet tape and fluid is varsol----both can be bought at CTC for 1/2 of GT prices. 40% of on grip-------they are still making their original margins---this supply of grips had already been purchased for this event.

All to say this is a ridiculous price regardless of sale.

I have had Golf Pride Multi Compound on my clubs for over 200 rounds---clean the grips regularly with CTC Tire cleaner (the one that has been mentioned on this forum) They are still almost as good as new.

IN ALL HONESTY SOME ARE IN NEED OF A CHANGE NOW.

After 3 years 150.00 is not a bad price to pay but 225.00 is a little much :-)

I am off to the south next week and have checked on replacing them there--(Golf Pride)150.00 plus tax plus 38% exchange !!!! Tell me where you will change your grips ??? :-)

Interesting article on golf club costs....

https://fairwayfirstgolf.com/the-end...ment-industry/

"Independent studies have estimated that over 70% of the cost of golf clubs actually goes towards something other than development and production costs. This basically means sponsorship deals and other advertizing."

Economics 101: Price is not determined by cost, it is determined by supply and demand.

In Ottawa we are lucky that GolfWorks Canada is located here so that there is a retail option besides GolfTown.

I buy my grips from Lamkin just like the old days but now they are on sale:

http://www.lamkingrips.com/shop/products/sale.html

You can save a lot but you must get shipped to a US address to get free shipping. I saved tons on new grips this year, and just drove down to Washington State to pick them up.

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Originally Posted by Break68

I buy my grips from Lamkin just like the old days but now they are on sale:

http://www.lamkingrips.com/shop/products/sale.html

You can save a lot but you must get shipped to a US address to get free shipping. I saved tons on new grips this year, and just drove down to Washington State to pick them up.

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The REL ACE 3Gen are $5.99 at GT right now which is a pretty good deal. A couple bucks more than the Lamkin site. I'll likely order some next time I am headed to the US - not worth the drive for me to save a few $

Why do you compare a retail store to online companies??? They are not even remotely similar. Online is killing retail. And why do they HAVE to offer deals? Are they not allowed to make enough money to cover their costs?

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Originally Posted by boylebj

So Golftown is having their annual Re-Grip Event again.
40% off...(used to be 50%)
$2.50 to regrip....(used to be $1.00 and $1.50)
Only on selected grips...(used to be on a wider variety of grips. Now they exclude most of the popular grips).
I was about to spend about $150 on grips and regriping, but now will only be spending about $30.
A company that is struggling should be doing alot more to stimulate sales.
They used to have better deals, bigger demo events, etc.
I noticed that Golfworks has better prices on grips than Golftown (although their re-gripping cost is $4.50!!!!).
You would think Golftown would have better prices due to volume buying???
I hope the new owners will have a better strategic plan to sustain Golftown
I very rarely buy anything at Golftown anymore because I find better deals or what I want on Ottawa Golf, GolfAvenue, Ebay or Amazon, etc

UPDATE: 2016/01/12 2:21 pm Website now shows 40% off most grips. Sent them an email earlier. Maybe they just noticed the error??? I guess I'll spend my $150 now!

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Quote:

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Originally Posted by boylebj

Sure things cost more. It's all relative. You can still offer good discounts with the cost of new clubs today...just like 'ten years ago"....especially given their prices. Most retail items have large profit margins (furniture, clothes, etc). You see big savings in the states because they know how to market and sell. Manufacturers need to get realistic with their prices given they introduce new clubs every year. Also, they need to adjust to a declining golf market clientele. They would definitely sell more new Drivers if they priced around $200-$300 (really, how much does it cost to manufacture a golf club). As far as $2.50 labour to replace grip...this is understandable due to inflation and wage increases.

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Most retail items have large profit margins... WTF??? Are you kidding? That statement is based on what? You see big savings in the States... Yes, that is at liquidation stores and chains, not at Specialty retail stores.

I am reading a lot of statements showing a true lack of knowledge!

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Originally Posted by golfisforfun

Most retail items have large profit margins... WTF??? Are you kidding? That statement is based on what? You see big savings in the States... Yes, that is at liquidation stores and chains, not at Specialty retail stores.

I am reading a lot of statements showing a true lack of knowledge!

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Golf Equipment has 20-30% markup
Golf Apparel has 50-60% markup
Purchasing costs improve based on volume buying

If you buy too much volume or products that don't move...than you run into problems. You need to turnover your inventory.

Golftown, Dicks and Golf Galaxy are chains...not specialty stores.
They buy large volumes compared to a store like GolfWorks.

The states have a larger market population so they can turnover product faster unless they have to many stores serving a particular location (oversaturation)

What are you basing your knowledge on???

I am basing my statements on about 20+ years of wholesale/retail experience, selling to the largest chains in Canada, selling to the smallest stores in Canada, being a buyer etc etc...

The mark ups you suggest are not LARGE profit margins. As soon as they start discounting they reach a point where they are no longer making profits. Do you think a store selling clubs at 20% off is actually making a profit? Yes, they may make some money above the cost they paid, but that money goes to cover all their operating expenses.

Yes, purchasing costs improve (discounts) with volume but only to a certain point.

As you said above, a company that is struggling should do more to stimulate sales... BUT NOT AT A LOSS!!!

They need to sell more goods and services at full value to finally start making a profit.

Do people think GT and other retailers are on this earth to sell products to all of us at a loss?

Quote:

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Originally Posted by boylebj

Golf Equipment has 20-30% markup
Golf Apparel has 50-60% markup
Purchasing costs improve based on volume buying

If you buy too much volume or products that don't move...than you run into problems. You need to turnover your inventory.

Golftown, Dicks and Golf Galaxy are chains...not specialty stores.
They buy large volumes compared to a store like GolfWorks.

The states have a larger market population so they can turnover product faster unless they have to many stores serving a particular location (oversaturation)

What are you basing your knowledge on???

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Quote:

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Originally Posted by golfisforfun

I am basing my statements on about 20+ years of wholesale/retail experience, selling to the largest chains in Canada, selling to the smallest stores in Canada, being a buyer etc etc...

The mark ups you suggest are not LARGE profit margins. As soon as they start discounting they reach a point where they are no longer making profits. Do you think a store selling clubs at 20% off is actually making a profit? Yes, they may make some money above the cost they paid, but that money goes to cover all their operating expenses.

Yes, purchasing costs improve (discounts) with volume but only to a certain point.

As you said above, a company that is struggling should do more to stimulate sales... BUT NOT AT A LOSS!!!

They need to sell more goods and services at full value to finally start making a profit.

Do people think GT and other retailers are on this earth to sell products to all of us at a loss?

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" They need to sell more goods and services at full value to finally start making a profit."

If what you state is true, then the future looks bleak for stores like Golftown and other retail stores. The retail industry has conditioned us for deals and discounts so that we get a sense of "winning".
To get us to change our behaviour to paying full price on items we believe are overpriced....is a losing battle, if not, a no win scenario.

Very few will go out and cash out $500-$600 for a new Driver. Most will wait for 6 months or more when the price will be reduced to half (or more) to make way for the new equipment being released.
The industry cannot survive on this model.
Maybe the manufacturers need to cut down on endorsement deals and advertising costs so that the new equipment is reasonably affordable.

The manufactures costs also include chasing counterfeiters.
$2.50 isn't alot of money for a grip change, but, one could save that money by doing the work themselves.

The future is already bleak for many retailers. There is a great book called "CHEAP" that talks about how our society is obsessed with buying cheap, finding deals, saving pennies even if there is no savings at all.

I sell to Winners and Marshalls and I have been told that many of these liquidation companies can't even keep up with the long list of manufacturers who need to dump product that can't be sold at regular price.

Quote:

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Originally Posted by boylebj

" They need to sell more goods and services at full value to finally start making a profit."

If what you state is true, then the future looks bleak for stores like Golftown and other retail stores. The retail industry has conditioned us for deals and discounts so that we get a sense of "winning".
To get us to change our behaviour to paying full price on items we believe are overpriced....is a losing battle, if not, a no win scenario.

Very few will go out and cash out $500-$600 for a new Driver. Most will wait for 6 months or more when the price will be reduced to half (or more) to make way for the new equipment being released.
The industry cannot survive on this model.
Maybe the manufacturers need to cut down on endorsement deals and advertising costs so that the new equipment is reasonably affordable.

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