Kirkland Signature (Costco) golf balls (MERGED) (NO BST POSTS)

[gioreeko]

And based on what Costco has released since the lawsuits, (wedges and putter) it seems pretty obvious who had the upper hand in the end

[snagy2000]

1 hour ago, gioreeko said:

And based on what Costco has released since the lawsuits, (wedges and putter) it seems pretty obvious who had the upper hand in the end

I'd say Costco is more focused on keeping their stores stocked with products which move quickly than a little 4pc replacement ball which isn't core business during these pandemic times. 

[gioreeko]

3 hours ago, snagy2000 said:

I'd say Costco is more focused on keeping their stores stocked with products which move quickly than a little 4pc replacement ball which isn't core business during these pandemic times. 

the two aren't mutually exclusive. I have a friend that works for Costco corporate, and you'd be surprised how much golf product they move, especially in the pandemic. 

[cardigan]

On 1/11/2022 at 8:30 PM, gioreeko said:

the two aren't mutually exclusive. I have a friend that works for Costco corporate, and you'd be surprised how much golf product they move, especially in the pandemic. 

I would be shocked if golf products were even close to one percent of Costco's business.  Golf OEM's are nowhere near the level of Costco.  All of the big golf OEM's combined still wouldn't be close.

Edited January 14, 2022 by cardigan

[bekgolf]

2 minutes ago, cardigan said:

I would be shocked if golf products were even close to one percent of Costco's business.  Golf OEM's are nowhere near the level of Costco.  All of the big golf OEM's combined still wouldn't close.

 

Costco is diversified.  Go in for a few things and leave with a whole lot more. 

 

I could see having two dozen quality urethane covered golf balls for $25 bringing people in who normally would of went somewhere else for groceries.  It's worked on me anyway, lol.

[Nessism]

On 1/11/2022 at 1:05 PM, gioreeko said:

And based on what Costco has released since the lawsuits, (wedges and putter) it seems pretty obvious who had the upper hand in the end

 

You assume too much.  

[Curmudg3on]

26 minutes ago, cardigan said:

I would be shocked if golf products were even close to one percent of Costco's business.

 

Costco's business model is mostly based upon membership, not products. 

[betarhoalphadelta]

14 hours ago, DennyJones said:

 

Costco's business model is mostly based upon membership, not products. 

That is true, but it's somewhat oversimplifying to state it that way. 

 

Membership fees are a very small part (~2%) of their revenue. Which means 98% of their revenue is selling products.

 

However, their business model is that the bulk of their annual income is targeted to be in the range of the membership fees. I.e. their products are designed to have enough gross margin to cover the costs of acquisition/distribution/etc, but that the company is not earning significant "profit" from their sale. I.e. it's actually true that their goal is to pass the savings on to their members. 

 

In fiscal 2021, they had revenue of $192B. Their revenue portion from membership was $3.88B. Their net income was $5.0B. 

 

Thus, their corporate financial goal is to offer products to their customers effectively "at cost", i.e. acquisition price plus distribution/operation expenses, and that their annual profit comes primarily from the membership fees. 

 

But their business model is to sell LOTS AND LOTS of high-quality products at reasonable prices to ensure that members continue wanting to renew their memberships. 

[cardigan]

34 minutes ago, betarhoalphadelta said:

That is true, but it's somewhat oversimplifying to state it that way. 

 

Membership fees are a very small part (~2%) of their revenue. Which means 98% of their revenue is selling products.

 

However, their business model is that the bulk of their annual income is targeted to be in the range of the membership fees. I.e. their products are designed to have enough gross margin to cover the costs of acquisition/distribution/etc, but that the company is not earning significant "profit" from their sale. I.e. it's actually true that their goal is to pass the savings on to their members. 

 

In fiscal 2021, they had revenue of $192B. Their revenue portion from membership was $3.88B. Their net income was $5.0B. 

 

Thus, their corporate financial goal is to offer products to their customers effectively "at cost", i.e. acquisition price plus distribution/operation expenses, and that their annual profit comes primarily from the membership fees. 

 

But their business model is to sell LOTS AND LOTS of high-quality products at reasonable prices to ensure that members continue wanting to renew their memberships. 

Agreed.  Most of their "revenue" is from selling products but that is not what drives their "profit".  It's highly unlikely that golf balls (or even all of their golf products combined) are of much significance at all in either column.

[SydShanshala]

“The new Kirkland 4-piece will be out any day now and finally end Titleist’s reign of terror…

 

…ok grandma let’s get you to bed.”
 

 

[grm24]

On 1/13/2022 at 7:45 PM, DennyJones said:

 

Costco's business model is mostly based upon membership, not products. 

And if Costco didn't offer excellent products that people continually purchase their membership would drop as would their profit margin. N'est-ce pas?

[Hateto3Putt]

It's not bragging if it's true....

[RSinSG]

On 1/10/2022 at 1:55 PM, bhj83 said:

I'll take a stab at it. Costco produces a 4 piece urethane ball, prices it at 2 for $29.99. Immediately becomes a success with reviews saying it's comparable with a ProV1. Ball sells out every time it gets stocked even with Costco limiting purchases to two per customer. Some sort of lawsuit is filed by a big ball company...4 piece disappears. Costco comes out with a 3 piece urethane ball at 2 for $24.99. Internet determines it's a good ball for the average golfer but it's no 4 piece OG Kirkland. Consensus seems to be you lose distance off the tee mostly and it spins a lot. Costco tries to release 4 piece v2.0. It was a disaster and the cover would cut/tear after minimal use. It was so bad that Costco refunded all purchases and told buyers there was no need to return the balls. Costco releases another 3 piece (V2.0) urethane ball. Similar to the original 3 piece but different type of urethane cover. Still not the 4 piece OG we impatiently wait for. This thread is still alive because we continue to impatiently wait for the unicorn 4 piece urethane Kirkland Signature golf ball for $15 per dozen. 

You left out the parts about chicken, whiskey, clothes, etc.

[Curmudg3on]

12 hours ago, grm24 said:

And if Costco didn't offer excellent products that people continually purchase their membership would drop as would their profit margin. N'est-ce pas?

 

Isn't that a given?

 

A quick Google search:

Costco's business model is to generate high sales volumes and rapid inventory turnover by offering members low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise. Costco's business model is built upon customer memberships, who join and renew annually.

[bekgolf]

2 hours ago, RSinSG said:

You left out the parts about chicken, whiskey, clothes, etc.

 

Costco cooked chicken is no joke.  4lb cooked chicken for $5.  The booze, clothes, bacon, golf balls, etc., are all single items that bring in shoppers.

 

My father has a membership just for the whiskey, nothing else.

[cardigan]

5 hours ago, bekgolf said:

 

Costco cooked chicken is no joke.  4lb cooked chicken for $5.  The booze, clothes, bacon, golf balls, etc., are all single items that bring in shoppers.

 

My father has a membership just for the whiskey, nothing else.

Depending on the state, you might not need a membership to buy alcohol at Costco. Some locations even have a separate liquor store section so you don't even have to go into the main store entrance.

[snagy2000]

1 hour ago, cardigan said:

Depending on the state, you might not need a membership to buy alcohol at Costco. Some locations even have a separate liquor store section so you don't even have to go into the main store entrance.

Yup, in Texas the entrance is outside and run by a 3rd party. 

[Jersey golfer]

21 hours ago, snagy2000 said:

Yup, in Texas the entrance is outside and run by a 3rd party. 

Same in New Jersey

[gpleonard]

The Kirkland V2.0 is definitely a decent ball for 35.00 for 2 dozen and a urethane cover. Been playing them for a little while here in Florida with no drop in performance.

[RSinSG]

12 minutes ago, gpleonard said:

The Kirkland V2.0 is definitely a decent ball for 35.00 for 2 dozen and a urethane cover. Been playing them for a little while here in Florida with no drop in performance.

$24.99

[beggestdee]

I bought a few boxes to use for my basement sim. They chew up very fast.

[bhj83]

On 1/17/2022 at 10:58 AM, beggestdee said:

I bought a few boxes to use for my basement sim. They chew up very fast.

Yep, that is something I've gone into detail in this thread about. I posted a comparison about how the v2 3pc isn't as durable as the v1 3pc. My one year old wedges that have been heavily used cut into the cover pretty quickly. 

[Stanks]

So, the new 4 Piece is happening... Time will tell?

[Swoff57]

I cannot believe this damn thread is still going! Well, chalk this up to my one and only bit of internet fame. Starting a 17K+ thread.

 

 

[soregongolfer]

2 hours ago, Stanks said:

So, the new 4 Piece is happening... Time will tell?

Are you asking a question or making a statement via your source?

[bekgolf]

1 hour ago, Swoff57 said:

I cannot believe this damn thread is still going! Well, chalk this up to my one and only bit of internet fame. Starting a 17K+ thread.

 

 

 

The Kirkland ball is still relevant.  24 quality urethane covered balls for $24.95 is always going to generate interest.

[soregongolfer]

1 hour ago, bekgolf said:

 

The Kirkland ball is still relevant.  24 quality urethane covered balls for $24.95 is always going to generate interest.

They should put you into the golfwrx Hall of Fame.  The originator of the longest thread in history.  

[grm24]

2 hours ago, soregongolfer said:

The originator of the longest thread in history.  

This thread isn't close to the longest thread in WRX history.

[soregongolfer]

4 hours ago, grm24 said:

This thread isn't close to the longest thread in WRX history.

No?  OK.  Longest thread that I've paid attention to. 😉

[NRJyzr]

51 minutes ago, soregongolfer said:

No?  OK.  Longest thread that I've paid attention to. 😉

 

Clubhouse Grille thread in the 19th Hole is pushing 1200 pages.  Longest I've seen but no idea if that is actually the longest.