Kirkland (Costco) Wedges!?

[miamistomp]

There is so much barely used high quality stuff at bargain prices I dont see the point other than an impulse purchase for someone who just wants some wedges

i tried the putter and that was also meh and is twice the price of a demo Juno I got from PGA store

 

Basically golf clubs for people who aren't really interested in golf clubs

The same way I dont care what frying pan I buy as long as it fries eggs as opposed to those who love their cookware

Yes just stating the obvious- not sure why it generates so much buzz

Hot dogs good- pizza is a thick soggy crust mess

 

[npham]

That's not how Costco or their Kirkland brand works. Plus there's no company out there that will have the unused stock to handle the volume that these wedges and their other golf products do.

What Costco does is work with a manufacturer, say Cleveland, and tells them I want you to make wedges with Kirkland branding on it. It needs to be 5% better than what you sell, and here are the metrics on how we'll judge performance. Then Costco puts it on their shelves and both companies are happy. That's why so many Kirkland products have amazing value, they have a model which ensures they have a better product for less money across all their products.

[Stanks]

That is not 100% correct. Not to stir crap or anything. Just know that your statement isn’t fully right.

Regardless of the manufacturer, I don’t think Costco would put a cheapo on the shelf. There is way more to this story than most of us know when it comes to the wedges.

[Oldboy]

these will sell out for sure. i'm sure everyone has experienced the surge of "new" golfers with this pandemic. the used club section along with the new bag section and "cheaper" ball section of my local shop are bare .. never seen anything like it .. why would they not sell irons and woods in the next few months .. bring out bags too .. they will all sell out

[DavePelz4]

It would be amazing if after the results of their litigious interactions, Titleist and Costco got together, hugged in a socially distant business way and then said "Let go sell some wedges."

[Guest]

I am always curious as to the age of players here that post comments...especially on a topic like this. For the past 25 years Golf Channel pretty much tells you whats on tour. The same ten brands spending $100 million each to sway you to identify with their brand. So, if you are 35-49, opinions on equipment are formed due to he massive amount of product placement on TV. Let's go back pre TGC?

I was at a Senior event in or around 90-92....looking in all the bags: Trevino, Player, Jack, and back then all the top amateurs of the day that turned 50 and went and qualified..anyway, what I saw was all the SOLID equipment of the 70-80's still in their bags. Jump ahead 10 years adding all the success of this tour and TGC?.....the same 10 brands. Why? because these guys are on TV and the companies are throwing $$$ at at them. Trevino told me " now you have to play whats out here" Just saw a Tour Exoctic with a friend of mine pitching it....TE was a low end 25 years ago. Hopkins are good wedges but couldnt grab hold because their business model didnt work.

Costco is a distribution center. They do have their house brand for everything. All they have done is placed this brand on another OEM wedge....so why the poo poo'ng...because it is not one of the 10 brands. If this same club said vokey on it and marketed correctly some would pay $199.00. But because it says Kirkland its now only worth $69.00? You give Titleist the ok but not Costco: that is called brand permission. So if Costco with their reach can sell 100,000 of these with a low mfgr cost, limited distribution costs, and marketing....sounds pretty smart. A lot easier to sell that 10000 Vokeys where mfgr costs, distribution and marketing erode profit $.

Look at all the bespoke companies now like National Custom...players are waiting 3-6 months for irons with NO LOGO on them and paying $2000 for a set. These heads come from the very same companies that Costco is using.

So the future? Look for this brand to be promoted by a player on the Korn Ferry or LPGA....but Champions tour for sure. This demographic shops at Costco.....that is what Costco wants. And if this player wins all the better.

This wedge is being poo poo'd before anyone has tried it.....no different than a 3 year old not liking vegetables cuz they are green and yucky! Again it is all about brand permission: some here do not like that fact that they may like a COSTCO golf club.

[av1084]

If this wedge showed up on Tour, this place would detonate.

[Guest]

I'm intrigued to see how far Costco goes w/ the club game! I'd love to take money from Club Champion or True Spec guys w/ Costco clubs

[npham]

What's wrong about it? Do you have some insider info? I read this in a business case study a while ago. It's not a secret that Kirkland products are re-bands, or slight tweaks to existing market leading products.

[TheMoneyShot]

I hope it happens.

[DavePelz4]

Costco cares about the volume of memberships, not the quantities of balls/wedges/putters sold. They're OK with limited quantities, just look at the original KSig, the putter and soon the wedges. If someone only has 25,000 units, they'll take them, test demand and go from there.

[braincramp52]

Winner Winner Chicken Dinner!!

[dbdors]

Many either don’t know this or forget. Costco is in the membership business. Which is why they push so hard for you to get the higher membership levels, as bad as a timeshare.

I joined Costco, because they offer more high items than Sams, and mostly because they offer golf items from time to time. Sams generally does not. We can get all the stuff Sams sells, and a few golf items from time to time. Although my wife likes Sams chicken better.https://www.investopedia.com/articles/investing/070715/costcos-business-model-smarter-you-think.asp

[dbdors]

Or for sure a bunch of heads would explode!

[npham]

The Kirkland branded products account for ~25% of Costco's sales (39 Billion in 2019). It's not insignificant.https://www.fool.com/investing/2019/11/19/the-kirkland-brand-is-costcos-secret-weapon-when-i.aspx

[Tru]

That’s what I noticed too. The whole wedge just screams SM7 52 F grind.

[DavePelz4]

Totally agree but their gross margin, not net margin, was 11% in 2019. Their gross margin on membership fees is probably close to 90%.

[j0hnny]

These or the new glide 3.0?

[Stanks]

For your second question, yes.

[j0hnny]

will these be available online or in store only?

[simshawk]

At the end of the day, what difference does it make if it’s Kirkland, Titleist, or Cleveland on the back. If the dam* thing works, hit it, and be happy.

[braincramp52]

Is this a serious question?

[npham]

Spill the beans then. What am I wrong about? I'm genuinely curious about the performance/metrics piece of their business model. I don't think anyone from legal is trolling these boards, you're good to share.

[Thayneil]

I think.anyone could send some wedge heads to a chinese factory and order 1000 of each loft.

Different logo

Price ?I am.guessing but around $8 each?

 

[iNeedMoreGolf]

But can they stop me from blading???

[wcbjr]

Good luck unless Costco has a tour van on site. Tour players need the ability to tweak a club the day of the tournament, or heaven forbid, replace a broken or missing club. And those clubs need to have the exact same specs every single time. That's not gonna happen with off the shelf clubs.

[Tgstan]

They look better than any PXG club I’ve seen.

[dcmidnight]

A wedge is a pretty common item but there is also a decent amount of R&D work that goes into making a good wedge. And I think its exactly the fact that we know nothing about where they come from is what "interests" some people - me included. For anything else Costco sells, I dont care. Kirkland Vodka or bagels or basically anything else they sell, I'm buying. But there's a pretty decent amount of work that goes into wedge design (or any other club). I have three TM wedges and a Cleveland in my bag right now and I know they make great wedges so I keep buying them year after year. Not a big secret that Cleveland makes great wedges.

And *thats* why I think it depends so much on the price when you are talking about Costco selling Kirkland branded golf stuff. Am I going to spend $99 on a Kirkland wedge when I can buy a brand new Cleveland wedge for exactly the same price? There's no chance - unless they can show me its worth it. Why would anyone do that? Would I spend....$59 on it? Maybe.

People wouldn't/still dont shut up about how great the Kirkland balls were and how they were as good as the ProVs - but IMO the reason a lot of people bought them was because they were a good ball AND one of the best deals in golf. Do you think they would have sold nearly as many of them if they are exactly the same price as the ProVs? There is absolutely no chance they sell near as many if they were $45/dozen.

Costco is a warehouse club, I think thats pretty much a given that people are conditioned to putting price above just about anything else when they shop there.

[Steve o]

I just hope they put them near the lady who samples something tasty.

[TheMoneyShot]

This could be an online release only. I could see that happening.