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  1. #61
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by golfisforfun View Post
    Profit margins on individual items are low? Really? Having sold products to Costco, and knowing their retail prices, I beg to differ...
    costco's profit margins are maximum 15%.
    I got a fever. And the only prescription is more golf equipment.

  2. #62
    Way Beyond Help big mac is on a distinguished road big mac's Avatar
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    Quote Originally Posted by jeffc View Post
    costco's profit margins are maximum 15%.

    Yikes---If you believe that Costco only works on a 15% profit margin-----then it is time to wake up and smell the roses. There is no way they could ever stay in business at that rate. IMHO
    Does the 2nd hole-n-one come easier ?

  3. #63
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by big mac View Post
    Yikes---If you believe that Costco only works on a 15% profit margin-----then it is time to wake up and smell the roses. There is no way they could ever stay in business at that rate. IMHO
    I love roses.

    They make their $ selling memberships. My neighbour is a buyer for them and it's a well known (or I guess not so well known in this case) fact.

    http://www.forbes.com/sites/greatspe.../#2cbb56353d42



    Great Speculations
    Buys, holds, and hopes

    Opinions expressed by Forbes Contributors are their own.
    Trefis TeamTrefis Team, Contributor
    The largest warehouse club in the U.S., Costco, has seen its gross margins fluctuate around the 10.6% mark over the last four-five years. From 10.87% in 2010, the company’s gross margins fell to 10.59% in 2011 and 10.57% in 2012. In 2013, the margins recovered to 10.64% and they further increased to 10.77% in 2014. While the historical change in margins has been a little wayward, we expect margins to decline slowly going forward through to the end of our forecast period. We forecast a negative 0.02% change in Costco’s gross margins every year, which will take down the figure to 10.63% over the next five-six years.

    While most supermarkets and department stores markup their goods by more than 25%, Costco keeps its markups low at 15%, that allows it to offer products at lower prices than its competitors.
    I got a fever. And the only prescription is more golf equipment.

  4. #64
    Hopelessly Addicted golfisforfun is on a distinguished road
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    I have seen goods sold to them in their stores at more than 2 times the price they paid...


    Quote Originally Posted by jeffc View Post
    I love roses.

    They make their $ selling memberships. My neighbour is a buyer for them and it's a well known (or I guess not so well known in this case) fact.

    http://www.forbes.com/sites/greatspe.../#2cbb56353d42



    Great Speculations
    Buys, holds, and hopes

    Opinions expressed by Forbes Contributors are their own.
    Trefis TeamTrefis Team, Contributor
    The largest warehouse club in the U.S., Costco, has seen its gross margins fluctuate around the 10.6% mark over the last four-five years. From 10.87% in 2010, the company’s gross margins fell to 10.59% in 2011 and 10.57% in 2012. In 2013, the margins recovered to 10.64% and they further increased to 10.77% in 2014. While the historical change in margins has been a little wayward, we expect margins to decline slowly going forward through to the end of our forecast period. We forecast a negative 0.02% change in Costco’s gross margins every year, which will take down the figure to 10.63% over the next five-six years.

    While most supermarkets and department stores markup their goods by more than 25%, Costco keeps its markups low at 15%, that allows it to offer products at lower prices than its competitors.

  5. #65
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by golfisforfun View Post
    I have seen goods sold to them in their stores at more than 2 times the price they paid...
    that's not their MO. They look to lower prices whenever they can. Not saying it's never happened but that would be a very rare occasion. My neighbour says they are not allowed to sell for anything over 15% margin. It's a different business model than the rest of retail. They make $2.5B on memberships alone which is mostly profit.
    I got a fever. And the only prescription is more golf equipment.

  6. #66
    9 Iron john8888 is on a distinguished road
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    http://www.wsj.com/articles/the-most...tco-1484832756

    “We don’t have a certain amount that we promise to deliver to Costco,” said Shim Kwang-Suk, executive director at Nassau’s ball plant in Korea. “We produce other products first and deliver to Costco if we have products left.”

  7. #67
    Singles Match Play Champ 2009 Team Match Play Champ 2013, 2014 leftylucas is on a distinguished road leftylucas's Avatar
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    Quote Originally Posted by justsomeguy View Post
    These sold out at Costco because they basically sold them at cost. You can't compare the Costco business model with a regular retail business like GolfTown.

    Costco has stated that virtually all of their profit comes from memberships (which have little to no cost). Profit margins on individual products are low (especially on their "house" brand stuff), they do not stock a lot of varieties of the same product and most items are sold in bulk. They do not have the same overhead as regular retail stores - it is a warehouse rather than a store and they do not spend much on advertising or marketing. The value proposition for consumers is that the savings on purchases are greater than the membership price, and it usually is because the normal profit margins that Costco is working with can be substantial. But if you want choices, options, advice, service or the ability to "sample" something first - you don't go to Costco.

    FYI the Nassau Quattro sells for around CDN$45-$50/dozen in the UK, compared to the Titleist Pro V which goes for CDN$60-$65/dozen. So if GolfTown were to stock it, it would probably be need to be priced for at least $30/dozen as a discount, urethane 4-piece ball for a brand that has zero recognition in North America. Not sure they would be flying out the doors at that price. I could see Costco making a deal to bring back the Kirkland Signature at $39.95 for 2 dozen though. Time will tell.
    My point was that Golf Town should simply investigate, I did not do a complete business model evaluation but whatever. They would have a great market even if the profit margin was not great
    Lefty Lucas
    I am abidextrous, I once golfed right-handed and now I shoot left-handed just as badly!

  8. #68
    3 Wood boylebj is on a distinguished road boylebj's Avatar
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    All to say that a good ball can be manufactured and sold at a reasonable price. Further K-Sig ball production could jeopardize sales of the big ball sellers....can't have that. Nassau sales to these companies could be jeopardized to if they sell to Costco (if they intend on keeping price low on ball).
    Again, another example of Golf equipment being way overpriced (ProV, Chrome Soft, etc). With an industry that is losing participants of the sport, their not helping by gouging the remaining members.
    I guess you really can't fault the companies. As long as people still continue to pay their prices, the companies will continue to sell their overpriced equipment.

  9. #69
    Playing Winter Rules Gobble_It is on a distinguished road Gobble_It's Avatar
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    Quote Originally Posted by boylebj View Post
    All to say that a good ball can be manufactured and sold at a reasonable price. Further K-Sig ball production could jeopardize sales of the big ball sellers....can't have that. Nassau sales to these companies could be jeopardized to if they sell to Costco (if they intend on keeping price low on ball).
    Again, another example of Golf equipment being way overpriced (ProV, Chrome Soft, etc). With an industry that is losing participants of the sport, their not helping by gouging the remaining members.
    I guess you really can't fault the companies. As long as people still continue to pay their prices, the companies will continue to sell their overpriced equipment.
    Really it's not Nassau's issue. If Titleist doesn't want to use them as manufacturer, they can always fall to the Costco's order. It's up to sellers/resellers to market and sell their products. If they can find an exclusive maker for their balls and cheaper they would have moved a long time ago.

  10. #70
    Founder Kilroy is on a distinguished road Kilroy's Avatar
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    Life dinnae come wit gimmies so yuv got nae chance o' gitt'n any from me.

  11. #71
    Gotta Post Break68 is on a distinguished road Break68's Avatar
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    Obviously you're not a golfer.

  12. #72
    Gotta Post Break68 is on a distinguished road Break68's Avatar
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    This might be hopeful:
    http://www.golfwrx.com/426008/costco...-will-be-back/

    Costco chairman: The Kirkland Signature golf ball will be back
    Obviously you're not a golfer.

  13. #73
    Caddy larry is on a distinguished road larry's Avatar
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    According to Jeff Shackelford, the Kirkland golf balls are made from old over stock Taylor Made ball cores:

    http://www.golfchannel.com/media/sha...ball-industry/

  14. #74
    Consistently present SnazzyD is on a distinguished road
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    Quote Originally Posted by larry View Post
    According to Jeff Shackelford, the Kirkland golf balls are made from old over stock Taylor Made ball cores:

    http://www.golfchannel.com/media/sha...ball-industry/
    Did Taylormade ever make a ball that had these characteristics? That seems a stretch...

  15. #75
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    It's Nassau's ball - the Quattro. Here's proof. They are marketing it with details now that it was the KSig

    http://nassaugolfballs.co.uk/golf-ba...d.aspx#quattro
    I got a fever. And the only prescription is more golf equipment.

  16. #76
    3 Wood boylebj is on a distinguished road boylebj's Avatar
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    Yes it is the Quattro. Nassau has priced it at 40 pounds a dozen in GB. Would they allow Costco to market it in US for $15 a dozen?????? Canada for $20-$25 a dozen?????

  17. #77
    In the Zone 4jag is on a distinguished road 4jag's Avatar
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    These things are selling for crazy prices on Ebay. One listing has 2 dozen listed for $238US! I broke down and sold one 24 pack for $99US - they sold in less then 5 minutes. Most guys are getting $50-60US per dozen.

    Capitalism is alive and well in the USA.
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  18. #78
    Wannamaker atomic is on a distinguished road
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    Why would you pay $70 US for a dozen Ksig balls, when ProV1/x are selling at 39.99/dozen, and the Ksig balls were almost as good as the ProV1's?

  19. #79
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by atomic View Post
    Why would you pay $70 US for a dozen Ksig balls, when ProV1/x are selling at 39.99/dozen, and the Ksig balls were almost as good as the ProV1's?
    Lots of reasons. Supply and demand . People want to try them and you can't buy them. If I recall, you buy crazy expensive Scott Cameron's no?
    I got a fever. And the only prescription is more golf equipment.

  20. #80
    Wannamaker atomic is on a distinguished road
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    Quote Originally Posted by jeffc View Post
    Lots of reasons. Supply and demand . People want to try them and you can't buy them. If I recall, you buy crazy expensive Scott Cameron's no?
    Yes Jeff, I own several Cameron putters...

    But if Costco produced a bunch of Cameron clone putters, and they sold out, and were selling for higher than MSRP on Cameron putters, I wouldn't buy one...I'd the the real thing. Just sayin'.

  21. #81
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by atomic View Post
    Yes Jeff, I own several Cameron putters...

    But if Costco produced a bunch of Cameron clone putters, and they sold out, and were selling for higher than MSRP on Cameron putters, I wouldn't buy one...I'd the the real thing. Just sayin'.
    you wouldn't but others might. It's difficult to rate a putter on performance but if one outperformed a scotty, and there were limited supply, the price would go through the roof.
    I got a fever. And the only prescription is more golf equipment.

  22. #82
    Singles Match Play Champ 2009 Team Match Play Champ 2013, 2014 leftylucas is on a distinguished road leftylucas's Avatar
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    Lefty Lucas
    I am abidextrous, I once golfed right-handed and now I shoot left-handed just as badly!

  23. #83
    8 Iron BARGEGOLF is on a distinguished road BARGEGOLF's Avatar
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    Adding another article. Will be interesting to see if performance levels of previous ball can be replicated at the price point they will want to sell the product.

    http://www.geoffshackelford.com/home...ming-list.html

  24. #84
    7 Wood ladygolfer13 is on a distinguished road ladygolfer13's Avatar
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    I was just in Myrtle Beach and that is first thing i went to see if have it and not stocked there

  25. #85
    Sand Wedge double_bogey is on a distinguished road double_bogey's Avatar
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    Actually I'm just curious why so much hype over the Kirkland Signature balls that now they are selling at some $30-50+/dozen online? Isn't the MG Tour C4 balls just as good and readily available at $20/dozen?

  26. #86
    In the Zone btasse is on a distinguished road btasse's Avatar
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    Quote Originally Posted by double_bogey View Post
    Actually I'm just curious why so much hype over the Kirkland Signature balls that now they are selling at some $30-50+/dozen online? Isn't the MG Tour C4 balls just as good and readily available at $20/dozen?

    The balls had the same composition and specs as the ProV1; also they were $30 for 2 dozen balls, not one.
    Golfing every day .......

  27. #87
    Sand Wedge double_bogey is on a distinguished road double_bogey's Avatar
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    Quote Originally Posted by btasse View Post
    The balls had the same composition and specs as the ProV1; also they were $30 for 2 dozen balls, not one.
    Yeah but now they've sold out at Costco people are trying to sell these online for $30 or much more per dozen. The MG Tour C4 also has similar composition and performance as the ProV1 for $20/dozen and still available?

    For me I just thought if I couldn't get the KS for $15/dozen (or $30 for 2 dozen) I would just go buy the MG Tour C4 for $20/dozen if I don't want to shell out for ProV1's...

  28. #88
    Hall of Fame jeffc is on a distinguished road jeffc's Avatar
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    Quote Originally Posted by double_bogey View Post
    Yeah but now they've sold out at Costco people are trying to sell these online for $30 or much more per dozen. The MG Tour C4 also has similar composition and performance as the ProV1 for $20/dozen and still available?

    For me I just thought if I couldn't get the KS for $15/dozen (or $30 for 2 dozen) I would just go buy the MG Tour C4 for $20/dozen if I don't want to shell out for ProV1's...
    simple economics, supply and demand. The supply is gone so the demand had gone through the roof.
    I got a fever. And the only prescription is more golf equipment.

  29. #89
    In the Zone btasse is on a distinguished road btasse's Avatar
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    Apparently there is a new version of the Kirkland ball coming out but wont have the same specs as the current ball (which probably might be discontinued). Should be available at Costco in the spring according to posts on Golfworx.
    Golfing every day .......

  30. #90
    Singles Match Play Champ 2009 Team Match Play Champ 2013, 2014 leftylucas is on a distinguished road leftylucas's Avatar
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    All the hype is responsible for this craziness, hell I don't even use a Pro V and I split a double dozen with a friend back in October of course I did not know it was a comparable ball to the Pro V at the time. This is a strange phenomena for sure, this ball exploded on the net and really is still riding the crazy train.
    Lefty Lucas
    I am abidextrous, I once golfed right-handed and now I shoot left-handed just as badly!

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