Covid 19 effect on equipment sales

Haven’t read any figures but I guessing new equipment sales are way down and not likely to pick up again until most of the golf season is over in a large part of the country. This means pretty much of a lost year for 2020 intros like Mavrik and SIM. So will this break the pattern on new club introductions? Will companies wait an additional year for their next refresh? What about balls like the Pro V1 and TP5 that would normally have an update in 2021. Will Titleist and TM be sitting on piles of inventory and have to wait until 2022?

So much unknown. I believe Callaway announced they were expecting a drop of $25 million in revenue due to the virus, but that was about a month ago and it's unclear if they've revised that upward (I would assume they will if they haven't already). I'd imagine companies like Titleist which are on 2-year product cycles are in better shape than those like Callaway and Taylormade because they have longer to recoup R&D costs but if retail closures last into May (or beyond) that's a lot of important Spring selling time lost. If people in limited golfing climates lose somewhere around 20-30% of their season many may be less likely to upgrade equipment this year as well.

As far as product cycles, I think it's unclear what's going to happen going into next year. Since most companies' R&D cycles are 2-years including those with annual releases I assume that Taylormade and Callaway will still have a product that's technically "ready" for release next year. I wonder if they'll try to delay a year and ride the Sim and Mavrik lines or if they'll call it a sunk cost and move on to the next generation. I imagine most of that answer is going to be derived from where inventories end up. Since their suppliers are also being hit as hard or harder they may not end up with huge inventory leftovers at the end of the year. If that's the case I'd bet they'll go ahead with the 2021 release as scheduled and consider the R&D the sunk cost. If they have a lot of inventory left over then they're probably more likely to push the next release to try to maximize revenues on that inventory. I imagine companies like Mizuno and Titleist which are on 2-year timelines but release in September (new woods for Titleist and JPX irons for Mizuno) will still announce something, though maybe delayed a couple months. I'd imagine they both cut off ordering new inventory around now or soon for those lines being replaced and will be ready to launch them if retail is open again.

Good deals on eBay for used clubs.

Hopefully good deals on new clubs

I imagine there will be quite a few bargains to be had!

I can only see sales of everything slumping dramatically. A lot of people will not have the money to buy and those that do will likely not be wanting to spend it at this moment in time.

Cant imagine a worse time for OEMs with Spring and the Masters right around the cover. In the northern hemisphere that seems to have been peak season.

I was just saying to my friends via text chain this morning how frustrating it is that here in the Northeast, we have terrible winters, just wait for March and April to come to start our short seasons, and here we are about to lose a good chunk of that season. As an aside, I am firmly in the camp that golf courses should be open right now and that taking the proper precautions, it should be of minimal risk. But apparently, my Governor and other Governors feel otherwise, so not much I can do.

Being a WRXer, I'm still buying some clubs. And I had gone heavy on the new Mavrik line before all heck broke loose, getting out for some winter rounds and a golf trip to Arizona right before the craziness started. But for the most part, in light of the short season around the country, and people getting hurt in their pocketbooks, I can't imagine anything other than a terrible year for the golf OEMs.

Might as well hunk'r down, going to be awhile?! Till May 4th everything closed down and re-evaluated come last week of April here.

I am sure it's a major impact as people can't test club at all...some will buy site unseen, but most want to give a new club some kind of test drive.

Anyone on Social Security will be getting a $1200 check from their Uncle SAM....Boomers go buy golf clubs.........BOOM BABY!

Sean2 I agree...that's a good point. Hard to justify replacing something in the bag without at least giving it a try. On that note, on the other side of the coin thanks to those who buy clubs sight unseen because the pre-owned section at Golf Galaxy should have a pretty good selection!

I haven't really seen much in the way of really good deals recently. In an economic slowdown like these, there are always some folks around with a bit of loose change (wish I could, but I got laid off in December and haven't had any luck since), and these are the ones who can afford to pick up some nice kit. If anything, there will just be fewer people competing for the same item, so someone like that is more likely to get what they want.

I noticed just recently that CPO is now offering financing for their preowned clubs. I don't know the terms, but it suggests it is offered to people who may have marginal credit ratings. It also suggests the stuff ain't moving.

golf courses need to lower green fees here in Denver. Its getting pricey

where are you seeing the deals? and what on?

With brick & mortar golf shops closes as non-essential businesses, how could golf sales not plummet? Even some manufacturers are shut down. The supply chain has to have chokeholds. I applies to nearly all industries. It’s a catastrophe for companies worldwide.

Virtually all courses and golf stores are closed here in Northern CA so that killed off retail sales for sure. I think the only category that has spiked are indoor equipment like putting mats, training aids, nets, swing analyzers, etc. and your only choice right now is to buy online.

I haven’t noticed any significant changes on here or eBay. As a buyer, I wouldn’t mind it. As a seller, I would. Gotta love the cycle of a club ho.

Just look at this forum.

It's dead, barely any new posts each day when check in.

. Odd.

The virus is cutting into R&D and testing for new stuff that should be released in the coming product cycles. I'm not worried about sales this cycle as much as I'm worried about newer stuff that was slated to be released later this year. There are definitely deals out there and unfortunately, a lot of shops and people are falling on hard times and need to pay for the kids, rent, mortgage etc and that's why you're seeing these prices. I say capitalize on them if you can.

Those in retirement getting their pensions and ss checks arent hurting...maybe inconvenienced.

Take the free money from The Uncle and support the economy....BUY Golf Clubs!

BOOM from a Baby Boomer.

And yes some very nice prices out their....

Definitely a few are hurting but, the ones that are hurting aren't playing golf. That is for sure.

same in washington state as of today

Just read an article yesterday. Some guys were caught golfing and the police were called. We have a 'snitch' line for ppl. not adhering to the stay home order. They were let off with a warning this time, but it is a $750 fine if caught. Personally, that is not enough! Stay home means stay home!! We need to beat this thing!!! Hope all are safe!!?

Luckily in Ohio, courses are still open, if taking necessary and common sense precautions. Courses are no different than parks and I have more of a chance get the virus at my local Costco.

Luckily, I can still golf and fish. Two solitary sports, if you want them to be.... :)

Courses are open in Nebraska and all the precautions are in effect. I'm sure that sales of equipment is way down because the opportunity to view them up close and personal because the big box stores are closed. But golf sales are not the only ones that are going to suffer. Auto, appliances, homes sales, etc. will all be down this year. This will be the year of lost opportunity.

RE ebay -- There are deals everywhere, not sure on new, but on used (all types of conditions), great prices to be had on literally anything you are looking for, from literally any model year

Courses are still open in KY but they have to take extra precautions and everyone is trying to stay extra vigilant, but every day there is new rules, and I think its only a matter of time before they close golf courses. I'm glad to have the outlet to go play, but I totally understand the requirements for caution, and wouldn't be too upset if they close down courses.

As for purchases, I've made one sight-unseen and I'm happy for it, but at our club we can't even go inside, so even the demo's are getting limited play. Obvious manufacturer days aren't happening either.

Not sure if everyone has received this article from My GolfSpy but here's the link to the question at hand. I, myself think that the big golf OEM's are gonna have to do a combination of things as far as Marketing, and Pricing. As many of you have mentioned before, there are some great deals out there today. https://mygolfspy.com/covid-19-impact-on-golf-companies/