The Fallacy of Club Adjustability
I commend the big brands in finding new ways to pick the pockets of the average golfer.
In 2007, the USGA, decided to establish a new rule on club adjustability It allows for woods and irons to be developed with interchangeable heads, variable shafts and even customizable lengths, lofts and weights. If you read the trade ads you’d think just by buying one of these fancy new adjustable clubs, your score will drop by 10 strokes. Nonsense.
Yet that is basically what the TaylorMades, Nikes and Nickent Golfs are saying: buy this over-priced, over-hyped, adjustable golf club with a patented new connector that lets you pull out one shaft and replace it with another and presto, you’re on your way to becoming a scratch golfer.
On the surface this might seem like a great idea until you check out the price tag for this new fangled technology. It wasn’t enough to make us buy the latest TaylorMade r7 or Callaway FT-i driver for $599. No sir, now, to get this latest technological leap forward into our bags we must cough up $1000 for TaylorMade’s “Tour Van in a Box” that contains a driver head and three graphite shafts.
Yet it doesn’t end there.
To make sure that we’d never put a non-TaylorMade shaft into their fancy head, a proprietary connector is needed. This will assure that you only buy the expensive shafts from the company even though you could buy the same shaft, without the connector, for less. Even if we did end up buying one of these fancy drivers, we still couldn’t swap out the shaft in the middle of a round. No no that would be illegal. That can only occur between rounds.
Every year the equipment manufacturers look for new ways to separate golfers from their money and we oblige them by purchasing billions of dollars of new equipment annually. This year’s technological leap du jour is adjustable shafts. If you remember last year’s flavor it was adjustable weights. Next year maybe they will let us use those laser-guided putters.
Frank Thomas, the inventor of the graphite shaft and the
GOLF CHANNEL's Chief Technical Advisor weighed in a few weeks ago “I don't think the USGA has thought this out to the extent it should have and instead jumped on something, which in the short term is going to please the manufacturers who are looking for something to stimulate their lagging sales.”
I’ll say this again like I’ve said it so many times in the past: take that $1000 and buy yourself some lessons or get your clubs custom fit. These options are much more likely to lower your score than a fancy adjustable-shafted driver.
Labels: Callaway, Golf Channel, Nickent Golf, Nike, TaylorMade
When The Going Gets Tough, The Tough Sue
When everyone is making money there isn’t time to try to take down the competition. With shrinking margins, stagnate revenues and tougher competition, if you can’t innovate your way to profitability, the only choice is to sue.
Take the recent court cases brought by Callaway against Titleist, Bridgestone against Titleist and DogLeg Right against TaylorMade. All are suing each other because of supposed patent infringements.
In the case of DogLeg Right, they accuse TaylorMade of violating two patents that “...cover technology that allows the user to adjust the center of gravity of the clubhead in up to three dimensions in order to produce golf ball trajectories varying from high to low fades, high to low draws, and high to low straight shots.” The supposed clubs that violate these patents are TaylorMade’s r7 Quad driver, TaylorMade r7 425 Quad driver, and TaylorMade r7 CGB Max driver and fairway woods.
A recent court victory was awarded to Callaway over Acushnet, makers of the top-selling golf ball the Titleist Pro V1. The jury awarded Callaway a victory on “….the construction of a multilayer ball with a solid core and a polyurethane cover that are used in the Titleist Pro V1 ball.” Callaway acquired the patents in 2003 when it purchased Top-Flite Golf following the bankruptcy of parent Spalding Sports Worldwide.
Acushnet was recently involved in another golf ball case that has been settled out-of-court with Bridgestone Sports Co. Ltd., resolving a 2 1/2-year ball patent infringement suit. Acushnet will be required to pay Bridgestone on-going royalties for use of an undisclosed number of Bridgestone patents.
Lawsuits are part of the business landscape and suing your competition is generally the chosen path, but for the major golf businesses, if they spent more time on innovation and growing the game and less on legal court fights, maybe their businesses would perform better.
Labels: Bridgestone, Legal, TaylorMade, Titleist
Who Wants to Own a Golf Equipment Company?
I wouldn't.
Golf equipment isn't a very good investment these days. Look at Callaway. It's stock has dropped 20% since July ($15.71 vs. $19.49), Golfsmith has faired even worse crash-diving 47% ($5.77 vs $10.95).
Two articles came to my attention on the golf equipment business recently:
Cleveland Sale Appears Imminent and
Huffy Corporation Sells Tommy Armour. Both appeared in GolfWeek Business. For leveraged buyout groups like the one that is selling Cleveland and the sporting goods conglomerate that is unloading Tommy Armour, golf isn't fitting into their idea of making a profit.
Quicksilver, the current owner of Cleveland because of its acquisition of Rossignol skis in 2005, wants to dump it because the parent took its first annual loss in 15 years. Huffy, which acquired Tommy Armour, TearDrop, Ram, and Zebra when it purchased extreme sports manufacturer Gen X in 2002, later emerged from bankruptcy in 2005 and no longer thought golf fit into its future plans. Rumors are that Cleveland could be a TaylorMadeAdidas target, but nothing is official.
Last year it was
sporting good retailers consolidating. Is 2007 the year for golf equipment manufacturers?
Labels: Callaway, Cleveland, Golfsmith, Golfweek, TaylorMade, Tommy Armour
The Idiocy of Movable Weights and Draw Drivers
On the Chinese calendar, 2007 is the
Year of the Pig, but in golf, it is the year of the Draw. The first major equipment company to the "Draw-ing" table was TaylorMade with their
r7 Draw. Then Callaway added to their FT line and its innovative square head, but couldn’t help themselves and now offers a
FT-5 in three flavors: draw, neutral and fade.
In 2004-06, we saw the introduction of moveable weight drivers. Then they expanded the concept to irons, hybrids and putters. Now we can move weight around on everything in our bag except maybe our ball retriever.
Lately, to gain a market edge, TaylorMade and Callaway have been
trying to undermine each other's credibility in the media. Creating a controversy of moveable weights versus square heads. This public fight may be good for equipment sales, but it does nothing for the average golfer. Neither of these product innovations will improve a 15-handicapper's game.
You have just blasphemed!! May the legal departments of these companies smite you.**
Not hardly. Changing the configuration of your driver by throwing weight around a club is not going to make a difference to any golfer unless we have a REPEATABLE SWING. If we can't do the same thing two consecutive times, what difference does it make if we can put weight in the toe, heel or anywhere else?
Every golfer wants to improve their game. It's one of those great truths in the universe. Short of outright cheating (a little rule-bending is okay), we are all looking for the next golf magazine tip or Zen moment when everything is right with the golfing world and we shoot that elusive par round.
We are being taken for an expensive ride my friends. Buying that $499 driver isn't going to mean a hill of beans to your game if you can't do the same thing twice. Save your money and buy some lessons. That and your old trusty 360cc driver will help lower your score faster than any of the fancy new drivers on the market today.
**Insert “cover-your-ass” legal babble here.
Labels: Callaway, Moveable Weights, Retailing, Square Drivers, TaylorMade
What is 2nd Swing Up to Now!!!
Like the Phoenix rising from the ashes,
2nd Swing is back in business. According to a feature story in my local paper
Star Tribune, the new 2nd Swing has got one store open in Minneapolis and a second is slated to open in Minnetonka on April 2nd.
Before the internet, eBay and sites like
www.callawaypreowned.com, 2nd Swing had a lock on the used golf equipment market. But it didn’t last long. To keep ahead, 2nd Swing added new equipment to it offerings and expanded like mad until it had opened more than 50 stores. As quickly as it grew, it also added debt at an alarming rate. By the summer of 2006, the chain was gone. A victim of overzealous expansion and $10 million in debt.
According to the article, founder Simon Kallal is back in the saddle again as well as much of his original management
"Kallal and a group of five other investors stepped in earlier this year and bought 2nd Swing's intellectual rights for $50,000. The purchase gave them the right to use 2nd Swing's name, logo, website, software and customer database consisting of more than 250,000 names."As well as wash its hands of any misdeeds, missteps or screw ups by previous management.
I wrote a posting in early September that
the company had been liquidated and 17,700 customers with credit balances got screwed. Well, things haven’t changed. If you check the website
www.2ndswing.com, they already have a disclaimer that says
"If you are seeking information regarding the old 2nd Swing, including credit or gift card balance redemption, please seek claims through the bankruptcy court. All balances were handled through the closing of the company. Zero balances were transferred to the new 2nd Swing." Let’s do some math. If we make the assumption that the average credit balance was only $50, then 2nd Swing was able to dump $885,000 worth of credits for only $50K ($50/customer X 17,700/customers = $885,000).
Meaning, tough luck Mr. Former Customer.
Although they have modest goals this time around, I don’t believe that the new 2nd Swing has any more chance of being successful as did the old one. The company is going back into the used golf equipment market when the market stinks. Real growth in golf equipment hasn’t occurred for six years and doesn’t look to do so very soon.
One of the chain’s former rivals,
Golf Galaxy, was quoted in the
Star Tribune article as saying
"the pie isn't any bigger than it was a year ago," said Randy Zanatta, chief executive of Golf Galaxy.
"It's all a market-share game, now. It's about how big of a slice you can get." Now owned by Dick’s Sporting Goods, in 2003 Golf Galaxy sold almost no used clubs. Now they represent 7 to 8 percent of the chain's overall business.
In addition, the threat of used equipment showing up on eBay and all over the Internet is very real. One online retailer I spoke with said that he buys directly from Titleist, TaylorMade and others and sees new equipment show up on eBay at retail for less than he pays for it at wholesale. Also, online websites like those operated by Callaway and others sell used or refurbished equipment, thereby competing with companies like 2nd Swing. When they first opened in 1996, none of these competitive factors existed. Today, all of them combine to make this a much different market than before.
For a paltry $50K, 2nd Swing gets to rise again and hopefully, not get themselves into the same mess as before. I remain a big skeptic.
Labels: 2nd Swing, Callaway, Dick's Sporting Goods, Equipment, Golf Galaxy, Minnesota, Retailing, TaylorMade
CLICK HERE to listen.In Episode #33 of Golf Gear News, host Bruce Stasch reports at The Newstand that a
PGA Player was in a High Speed Car Race,
a Japanese Company that Reprimands Golfers and
Nike Issues a Recall of Sumo Drivers.
The Guru Commentary uncovers
An Equipment Spy that Finds Nike's Sumo2 Driver Illegal. The Perfect Fit finds some odd
Ralph Maltby Equipment Ideas and She Golfs Too learns about
Colin Montgomery's New Charity.
Our Component Corner takes a look at the
Golf Ball Launcher as well as listens to
the Sounds of Today's Top 3 Selling Drivers.
In Can't We All Get Along
Boo Weekly Learns a Lesson and in Golf Around the World we visit The Continent to play a
New Golf Game Variation Called PowerPlay.Finally, Golf of the Weird learns about
Tricking Out Your Golf Cart and
a Couple That Gets Two Aces in New Zealand.
As always, our show is sponsored by
Golfknockoff.com.
Check out our new
Media Kit.
Labels: Callaway, Colin Montgomery, Nike, Sports Authority, Square Drivers, TaylorMade, Tiger Woods, USGA
Equipment Spy Finds Nike's Sumo2 Driver Illegal
Nike calls it a "voluntary product return", I'd call it overstepping, pushing the envelope, or a violation of the sacred rules of the USGA. No matter how you want to describe it, Nike Golf has gotten itself into, as the Brits would say, a sticky wicket.
How could this happen in the dog eat dog world of golf equipment?
They were ratted out by a competitor. Who? TaylorMade? Titleist? Cobra? I’m guessing Callaway. Not that I have any evidence to pin it on them, but who better to put the fear of "non-conformity" into the hearts of equipment buyers but the company that could gain the most from this year’s square driver competition but Callaway.
And how would they gain by this bit of corporate espionage? Take the wind out of a competitor's sales (nice play on words there I'd say) by tipping off the USGA that their competitor is trying to gain a market advantage by selling (unofficially mind you) a NON-CONFORMING driver. Callaway can look like the good guy by reporting Nike to the authorities, increase its sales at the expense of its competitor in the meantime, and cause Nike to spend money and time recalling thousands of bad drivers. Ouch!!
Based on what I hear and read, Callaway's FT-i Square Driver is kicking the Nike Sumo2's butt where it counts: retail sales. Reference the latest Golf Magazine and you'll see that they rate the TaylorMade r7 SuperQuad higher than the square drivers (Nike finished third). For whatever reason, even before this golf manufacturing "spy" committed corporate espionage, Nike’s product hasn’t been getting the same respect or publicity as Callaway. Even Tiger Woods doesn't have the new Sumo2 in his bag. How bad is it when your top spokesplayer snubs your product?
More evidence of getting caught red-handed is Nike’s own website
www.nike.com/nikegolf. Upon entry, a video pops up of president Bob Wood explaining that Nike is voluntarily complying with the USGA by removing and replacing these NON-CONFORMING drivers. If they weren’t guilty, my guess is a corporation as large and as savvy as Nike would drag out this thing in court, do like the White House and "out" the spy, then stall until the selling season for this driver is past (about six months). Also, Nike is only instituting this recall for 34 days (from March 26 to April 30) so they are not being very generous when it comes to returns for customers affected by this situation.
In the dog eat dog world of golf equipment, being the "hot" product for the season is golden and can mean a make or break year. It is also accepted that pushing the technological envelope is de rigueur. Being caught with the goods just might trash this year’s sales of the Nike Sumo2, as well as sully their hard fought reputation. An “unauthorized manufacturing variance” that Nike hoped wouldn’t be noticed looks like its going to cost them big time.
Labels: Callaway, Nike, Square Drivers, TaylorMade, USGA
CLICK HERE to listen.In Episode #31 of Golf Gear News, host Bruce Stasch reports at The Newstand that
Wie is Out for Month with Injury,
Hockey Wants to Emulate Golf and
TaylorMade-Adidas Inks Deal with Chinese.
In the Perfect Fit section we learn about the
R & A's Ruling on Iron U-Grooves.
The Guru Commentary asks the question
Is TaylorMade Losing It's Edge to the Square Driver? She Golfs Too explores
About.com's Top 50 Female Golfers List and Golf Around the World visits Colorado and the
Newest Ice Golf Course.
In Can't We All Get Along a
Golfer is Wanted in Course Vandalism and Golf of the Weird reports on the
Golf Novel That Predicts the Future and the
Only Par-4 Hole on the PGA Tour.
Our Website Spotlight is
Sweet Wood Golf Company.
As always, our show is sponsored by
Golfknockoff.com.
Check out our new
Media Kit.
Labels: China, Equipment, golf, Michelle Wie, Moveable Weights, Podcast, Square Drivers, TaylorMade, Women's Golf
Is TaylorMade Losing It’s Edge to the Square Driver?
The "hottest" marketing trend in the driver world today is the square-headed driver. Both Callaway and Nike officially hit the market with their entries at the recent PGA Show. Yet, TaylorMade appears to be sticking with their moveable weight concept they introduced in 2004. Does this mean that TaylorMade is losing its edge in the driver market that it's owned for years?
According to president and CEO of TaylorMade-Adidas Golf who was quoted at the PGA Show, "the square-headed driver phenomenon will be over in about 90 days." Wow! That's a big time shot over the bow of Callaway and Nike who are relying on their "squares" to help push driver sales in 2007.
What seems to be really occurring is the creation of two retail pricing levels. The first at $300 and a second at $500. Mr. King at TaylorMade is probably right in that the square driver phenonmenon will quickly fade and be replaced by something new in 3-6 months. Look at the last three Ping gererations with the G2, the G5 and now the Rapture all coming out in the last eighteen months.
TaylorMade's entries for 2007 are a throwback to their earlier
Burner (retail price $359) which is targeted to price-conscious "bomb and gouge" player that focuses on speed to satisfy their need for added distance and the
r7 SuperQuad (retail price $499) which should attract bigger budgeted golfers more concerned about course management and accuracy versus power.
In comparison, Callaway's entries are the
Big Bertha 460cc (Retail Price $299) and the
FT-i Series (retail price $499). Even Nike gives you two pricing options with its SasQuatch Sumo Square Driver (retail price $499) and the SasQuatch Sumo Driver (retail price $299).
If square drivers take the market by storm, expect to see new iterations of the concept extending into fairway woods and perhaps hybrids. If not, you'll see those hot "squares" in the discount rack for $299 by May 1st.
Labels: Callaway, Karsten Manufacturing, Nike, Square Drivers, TaylorMade
Why Are Golfers So Gullible?
Many will say that "perceived" product innovation drives the golf club market each year. Knowing that, gullible golfers still wait in line to be the first to turn over their money and buy the latest, hottest or most advanced product on the market today.
So, shouldn't it seem ridiculous to Mr. Gullible Golfer that Callaway, the big daddy of equipment, is coming out in 2007 with another "ultimate performance driver based purely on physics?" Obviously not.
I'm not picking on Callaway specifically, but all the equipment manufacturers out there. It used to be that once a year, around October, we'd get to see the unveiling of each company’s new line of golf clubs. Now, we see the cycle repeat itself every six months.
If I may, please refer to Exhibit A: the
Callaway Fusion FT-i 460cc Driver.
Now how is this one different than the others? Wow! It's got a square rear end. And it will come out at $599. Nike is going to have one too!! Last year it was screw weights, first introduced by Taylor Made, now its square butts.
As each new driver hits the market, the manufacturer mentions all the folks that are testing it on tour. Then they talk about the "performance enhancements", "breakthrough technology" and the "unprecendented amount of pre-orders". In the meantime, Mr. Gulllible is salivating at the prospect of getting his hand on one of these. If someone wins with it (perhaps an Annika or Phil), then it becomes the hottest seller....for a while.
Let's see, since 2002, Callaway has introduced the Great Big Bertha, Great Big Bertha II, Big Bertha 454, Fusion, Fusion FT-3, X 460, and now the Fusion FT-i. That’s seven new drivers in FIVE years. With an average sticker price of $399, Mr. Gullible would have needed to spend $2793 to keep up with the Jones since 2002.
That doesn't even include the new $899 set of irons, the $179 putter, the two $149 fairway woods, a $119 hybrid or the $42 Pro V1 golf balls Mr. Gullible’s needed to keep current.
I'm not faulting Callaway. I’m faulting Mr. Gullible the consumer. Instead of actually taking lessons to improve one's game or even playing more than twice a month, Mr. Gullible wants the club to do all the work. Just think, at $125/lesson, he could have 16 lessons with a pro and still have money left over to buy that Callaway FT-i when it shows up on eBay three months later for only $299.
Isn't there a point when a golfer has too many clubs or are we all just gullible equipment-buying fools?
Labels: Callaway, Equipment, Moveable Weights, TaylorMade
CLICK HERE to listen.In Episode #27 of Golf Gear News, host Bruce Stasch reports at The Newstand that
Woods' Wife Sues, the
Medieval City Found Under a Golf Course and
John Daly to Divorce Again.
The Perfect Fit explores TaylorMade-addidas attempt to
Reinvent Maxfli Brand with John Daly as its star.
The Guru Commentary rants about
Michelle Wie's 11th Failure in a Men's Event and She Golf's Too talks about the
LPGA's New Drug Testing Policy.
The Component Corner highlights a
Labor Shortage in South Florida and a
$3000 Gold Golf Tee.
We travel to South Africa to Play With Crocodiles and in Golf of the Weird a Spectator
Steals a Golf Ball at a Tournament and a Russian Cosmonaut Hits a
Golf Ball in Space.
As always, our show is sponsored by
Golfknockoff.com.
Check out our new
Media Kit.
Next time listen for the next installment with the Socrates of Golf - Duffer McDoughall Johansen.
Labels: John Daly, LPGA, Michelle Wie, South Africa, TaylorMade, Tiger Woods
