PXG laying off workers... Any credible information? (Merged)

[dxdgenert]

Something that gets lost in PXG discussions is that a lot of heroes (military, first responders) get a very substantial discount to play their clubs. This spring, they were charging $95/iron for 0211’s with a free driver and putter! So while it is true that some guys are paying double to comparable products, it is also true that some are paying half.

[sdandrea]

It seems that to be competitive in this market, a boutique company with high-priced products would have to remain lean. I have only seen one set of PXG irons on course and I live in a Florida golf community. I don't know their market share ins, but it's gotta be low. "Nobody prices golf clubs like we do".

[kylesilk]

I doubt there is a single golf club company that hasn't had a round of layoffs at some point. Lot of PXG hate round here.

[SUPERG]

Sucks for those losing work, but PXG will be fine I’m sure. Tried their stuff and actually loved the hybrid. Woods look very sharp as well. Stuff performs great, just not better than the rest, and they don’t care.

[braincramp52]

They could just be getting rid of some dead weight.

[Warrior42111]

> @lawsonman said:

> They could just be getting rid of some dead weight.

 

Tough that the holidays are coming, but yeah lots of companies drop their bottom performers yearly.

[shoot4par]

They're still hiring fitting specialists and it would seem logical that they'd go first in smaller territories. Since they have master fitters and such.

[WIGolf]

Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

 

I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

[cpayton]

> @dxdgenert said:

> Something that gets lost in PXG discussions is that a lot of heroes (military, first responders) get a very substantial discount to play their clubs. This spring, they were charging $95/iron for 0211’s with a free driver and putter! So while it is true that some guys are paying double to comparable products, it is also true that some are paying half.

 

That's wild. Wish they'd offer at least the 0211 alone for that price again, especially during the off season. The current discount brings many 2018 models into competition.

[BIG STU]

> @sdandrea said:

> It seems that to be competitive in this market, a boutique company with high-priced products would have to remain lean. I have only seen one set of PXG irons on course and I live in a Florida golf community. I don't know their market share ins, but it's gotta be low. "Nobody prices golf clubs like we do".

 

Like you I live in a golfing community / tourist mecca. I have only seen 2 sets period. One of those belongs to one of my golf buds who is a WRX quality club ho on both new and vintage stuff. The other set was some out of town tourist golfer and he had the whole works staff bag and all. From what I read at the start Bob Parsons did not set out to compete directly with the "big 3" of the golf equipment world. He wanted to do his own thing and he had the financial means to do so. I do applaud being a veteran myself ( as Mr Parsons) what he is doing for veterans and first res-ponders. I have had the opportunity to see and hit some of his clubs and frankly FOR ME they do not appeal to me in any way. Not slamming them in any way but they do not fit my eye or feel. To be completely fair a lot of the newer stuff from the big 3 does not appeal to me either. But hey it is whatever someone's cup of tea is and that is ok by me.

[rgk5]

> @QuigleyDU said:

> > @TheMoneyShot said:

> > > @QuigleyDU said:

> > > I heard through a very good and trustworthy source that pxg is laying off employees. The number I heard was about 2 dozen. Now, I do not think they are in any kind of real financial trouble or struggling and on the way to closing. I just found it interesting.

> >

> > Getting them off the books in Q4...

>

> That’s probably it. That why I tried to say I didn’t think they were close to closing up shop.

>

> Johnny is in pretty good with them maybe he knows. Maybe this is the big announcement he has teased on his pod cast.

 

That is assuming their fiscal year matches the calendar year which it may not.

[tannyhoban]

That's 14 percent of the work force if linkdin is to be believed. The economy is giving indications of a big downturn in manufacturing, in case anyone missed it.

 

 

 

[dxdgenert]

Is the industry as a whole on the verge of a Tiger Effect ver. 2.0 Lite?

 

PXG has adapted their model since their last inception, if you consider the 0211 irons. They discarded the best at all cost mantra to offer a cheaper version that still performs to their standards. There are trade offs but they have been willing to make a concession for that line. Maybe they’re considering other categories deviating from super-premium only? I’m a bit concerned about them diving headlong into apparel. I imagine the margins are very high but that seems like a fickle category that I wouldn’t enter. It’s possible that Bob is willing to take those losses to allow his wife to have a passion project.

[MaineMariner]

I don't totally understand why PXG sponsors so many players on the PGA and LPGA tours if their goal is to simply be a luxury/premiere brand that only ends up in a small percentage of bags. I would think that they would be better off just slapping their logo on one or two golfers (a la Justin Rose with Honma).

 

On the other hand, I don't know the price tag that's associated with their club deals. It's possible that sponsoring Zach Johnson, Billy Horschel, and Lydia Ko is cheaper than affiliating with one Justin Rose.

[ssfranny]

Yeah theyve jumped pretty hard into apparel. Had a ad on Times Square for the new clothing line. All the stuff is pricey. Maybe some of the focus is devIating from the golf equipment to clothing.

[ssfranny]

Also Id be curious to know what part of total sales is Heroes vs Non Heroes. My guess would be Heroes is 1/3 to 1/2 of sales.

[dxdgenert]

> @ssfranny said:

> Also Id be curious to know what part of total sales is Heroes vs Non Heroes. My guess would be Heroes is 1/3 to 1/2 of sales.

 

I wouldn’t think it is that high but anything is possible. It should be noted that the heroes program is also open to military/veteran’s family members.

[bogeypro]

> @WIGolf said:

> Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

>

> I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

 

 

The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

 

[WIGolf]

> @bogeypro said:

> > @WIGolf said:

> > Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

> >

> > I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

>

>

> The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

>

 

I paid around $900 for 4-AW with upgraded shafts after being fitted for 0211’s. C-Taper 120’s 1 degree up and a half inch extended. I was given a fitted 0811X with an PX evenflow White t1100

 

I loved the 0211’s. Previously played 790’s, Ping G’s, and most recently, Srixon Z545’s. Due to a change in swing speed, I wanted to get refitted and found the 0211’s to look great, feel damned good for cast, and we’re extremely forgiving despite not looking like large shovels. So when compared VS. Other brands, I couldn’t find a deal like that.

[Foreleft]

No one makes pink slips like we do. PERIOD.

 

Thought this guy was supposed to be so loaded that he could run this company for a century at a loss and never notice it?

[CaymanS]

I don't think they have a sustainable business model and will not survive long-term. Any near-term layoffs may or may not be related, but you can't charge what they do without offerrng a performance gain.

[Llortamaisey]

> @Foreleft said:

> No one makes pink slips like we do. PERIOD.

>

> Thought this guy was supposed to be so loaded that he could run this company for a century at a loss and never notice it?

 

I don’t think PXG is in any financial trouble. I bet Parsons hires people just so he can fire them. Rich people tend to have eclectic hobbies like that.

 

[Old Tom Morris]

Never considered their equipment. Can’t find it anywhere, looks awful, too expensive.

[hef63303]

> @Foreleft said:

> No one makes pink slips like we do. PERIOD.

>

> Thought this guy was supposed to be so loaded that he could run this company for a century at a loss and never notice it?

 

Being able to lose money and wanting to lose money are 2 different things.

[GoGoErky]

> @ssfranny said:

> Yeah theyve jumped pretty hard into apparel. Had a ad on Times Square for the new clothing line. All the stuff is pricey. Maybe some of the focus is devIating from the golf equipment to clothing.

 

Their apparel sells out pretty quickly whether it was the Peter Millar stuff or the new stuff which is done by the Nike apparel folks hired. How many brands can say they sell out every release?

 

> @bogeypro said:

> > @WIGolf said:

> > Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

> >

> > I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

>

>

> The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

>

 

As a vet I don’t thing they are preying on the military. It’s giving military and vets the chance to buy a premium product at a regular price. They offer their latest stuff now which is even better. When I bought my set I debated between gen 1 at a discount or gen2 full price. I went gen2 full price. The heroes program has been a huge success and would indicate the number of active duty, vets, first responders who think they are being preyed on is very small.

[setter02]

> @GoGoErky said:

> > @ssfranny said:

> > Yeah theyve jumped pretty hard into apparel. Had a ad on Times Square for the new clothing line. All the stuff is pricey. Maybe some of the focus is devIating from the golf equipment to clothing.

>

> Their apparel sells out pretty quickly whether it was the Peter Millar stuff or the new stuff which is done by the Nike apparel folks hired. How many brands can say they sell out every release?

>

> > @bogeypro said:

> > > @WIGolf said:

> > > Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

> > >

> > > I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

> >

> >

> > The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

> >

>

> As a vet I don’t thing they are preying on the military. It’s giving military and vets the chance to buy a premium product at a regular price. They offer their latest stuff now which is even better. When I bought my set I debated between gen 1 at a discount or gen2 full price. I went gen2 full price. The heroes program has been a huge success and would indicate the number of active duty, vets, first responders who think they are being preyed on is very small.

 

Those other appearl companies also do likely how much more business? Who cares about selling out when its like 1% compared to the big boys... No different than assuming their product is actually 'premium' vs. over priced Pings with screws.

[ShankLife]

The dad said it best in Tommy Boy, "You're either growing or your dying". But that was auto-parts. It couldn't possibly translate to golf...Could it?

 

No but seriously, golf goes through booms and busts and high employment and low employment. Sports retail is fickle.

[dxdgenert]

> @bogeypro said:

> > @WIGolf said:

> > Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

> >

> > I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

>

>

> The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

>

 

First and foremost, thank you for your service.

 

I'm not sure what you are getting at. If you look at the Heroes Program as getting the 0211 irons ($875 4-G) for the price of the TaylorMade P790 ($1100 4-A) or PING i500 ($1300 4-U), you are missing the point and you are incorrect. The 0211's irons start out at $225 retail ($1575 4-G) and are hero priced at $125 (as low as $95 within the last 8 weeks). That is a massive 45% savings that heroes get over the general public. If you want to argue that John Q. Public is being preyed upon, go ahead and take a number, that is what everyone else is implying too. Now factor in that the heroes were getting a free putter AND/or driver for that price (depending on the sale this past spring)! It was such a sweet program that most folks were buying the package, flipping the irons for profit and getting a free driver and putter. Heck, some were flipping all three and making $500-700. Preyed upon? I don't think so.

 

Now they even offer hero pricing on ALL clubs. New Gen 2 irons are $295, down from $400 (almost 30% discount).

 

I get the PXG hate. I don't agree but I get it. However, their military support, in my opinion, is beyond reproach.

[ssfranny]

> @dxdgenert said:

> > @bogeypro said:

> > > @WIGolf said:

> > > Regarding The Who PXG is targeting: I don’t think it’s ever been their goal to be in so many bags. They’ve always marketed themselves as a top tier luxury brand IMO. People also discount the sheer amount of .mil and first responders that golf.

> > >

> > > I remember golfing with my grandpa at wright Patterson air base golf course as a kid and there was always tons of vets out. Now as a first responder, I go to a good amount of charity outings chock full of people who qualify for PXG’s discount. Me personally? I couldn’t afford PXG at retail cost. With their first responder discount? I have a set of 0211’s in my bag with an 0811X driver. The clubs have been fantastic and the fitting experience was excellent. They do a great job. Once you get past some of the cheesy marketing stuff, it’s all on the up and I’m grateful for what they did for me and a bunch of my guys.

> >

> >

> > The problem I have with pxg is that their military discount makes them about the and price as everyone else’s regular price. I think they are preying on military. If you want to give a discount, then make it better than the others. Otherwise, it’s simply lip service. You can’t tell me that for every $5000 set of irons they sell at an upscale club member that pxg can’t afford to sell a set to military for less. They are making lots of profit of their overpriced Chinese made stuff. They need to stop with the fake discounts. As a vet, it pisses me off.

> >

>

> First and foremost, thank you for your service.

>

> I'm not sure what you are getting at. If you look at the Heroes Program as getting the 0211 irons ($875 4-G) for the price of the TaylorMade P790 ($1100 4-A) or PING i500 ($1300 4-U), you are missing the point and you are incorrect. The 0211's irons start out at $225 retail ($1575 4-G) and are hero priced at $125 (as low as $95 within the last 8 weeks). That is a massive 45% savings that heroes get over the general public. If you want to argue that John Q. Public is being preyed upon, go ahead and take a number, that is what everyone else is implying too. Now factor in that the heroes were getting a free putter AND/or driver for that price (depending on the sale this past spring)! It was such a sweet program that most folks were buying the package, flipping the irons for profit and getting a free driver and putter. Heck, some were flipping all three and making $500-700. Preyed upon? I don't think so.

>

> Now they even offer hero pricing on ALL clubs. New Gen 2 irons are $295, down from $400 (almost 30% discount).

>

> I get the PXG hate. I don't agree but I get it. However, their military support, in my opinion, is beyond reproach.

 

Yes no one can dispute the Heroes program as being great for military.

[golfboy123]

I knew it would not take long for the pxg hate 2 roll in !