Over/Under: PXG will still be in business in 5 years?

[Adam C]

Title says it all. People seem to have pretty strong opinions about PXG so figured I would stoke the fire a little more. But I do think it's a valid question based on the number of golf companies that no longer exist.

[GoGoErky]

Don’t see any reason they won’t be in business. They are opening retail stores, working new designs and have been awarded inc 500 award for one of the fastest growing companies.

They weren’t supposed to be around 3 years after starting and that has been proven to be wrong

[Laznasty]

If I remember correctly, bob parsons has said that he doesn't care if the company makes money, so I'll go over.

[SubaruWRX]

It’s well funded. Regardless of sales figures, it just depends on what the owner wants to do. If it’s profitable, it 100% continues and probably expands. If it runs in the red, it’s all up to the owner if he wants to keep writing checks (which he has the means to do).

[BB28403]

Yes, google the golfspy article. In it they explain studies have been done about people paying astronomical amounts for the same item. Such as wine. Pay $10 or $50 a bottle for the same wine and people just Loooovvvveeee that $50 bottle, (Lewis Black voice) “It’s the same wine!!!” people aren’t very bright huh?

PXG is the same way , they mark their clubs up 5x and people love it! Go figure.

[SEP1006]

This reminds me of all the threads that were started when PXG clubs released the GEN 1's. So many posters claiming there was no way they would survive at that price point, will be gone in 2 years, can't compete with all the OEM's , yada yada yada.

 

Yet PXG is still here and OUTSIDE appearances seem to be doing fine. Like Laznasty posted, they will be in business as long as Parsons wants to be. So I will definitely say over.

[cgasucks]

Yes, they'll stick around 5 years from now. A company can only as be as viable as the amount of cash they have to stay afloat regardless of how much they pull in sales wise, and they have a lot of cash since the owner is a Billionaire.

[CanadaCal]

100% over

[dalillama47]

I'm going to say over. Like some have said, it's all up to Parson's. He could care less about the money. I suppose if he gets bored to death with golf, maybe he'll get into some thing else. No doubt he firmly goes 100% into what ever he does.

[RogerinNewZealand]

I get the impression

they are moving forward.Definitely some love for irons and drivers. Niche Product yes. Tesla has met with acceptance and i think PXG has too.

[jgallant415]

It’s been reported PXG is profitable and the brand certainly isn’t shrinking. I’ll take the over for sure.

[Davidv]

Definitely be around far more than just 5 years.

[the bishop]

I don't know what their internal goals and projections are going forward. And I'll readily admit I haven't hit any of their stuff - it just doesn't appeal to me and price/cost isn't an obstacle. But as an observer of the industry at large they've taken a targeted approach at improvement. Their first generation woods line (drivers at least) received a lukewarm reception but from everything I've heard and read subsequent releases have shown steady improvement. Their irons and wedges have been pretty well regarded from the beginning. I really don't see them going away.

[SUPERG]

OVAHHH!

[mikec3672]

Why would anyone think PXG would go away, when companies like JDM Epon, Miura serve the niche well????

IMO Parsons is the first "JDM" like company in the US.

They will be fine.

[farmer]

As long as PXG is a private company, has no shareholders to appease, and Bob Parsons is all in, PXG will be around.

[Graymulligan]

This is such a great point. When a company establishes itself as a "luxury brand", people just assume the cost is getting them something they don't get otherwise. PXG has done a great job of doing that.

[ephmen]

A rich old man's vanity project will continue to operate even if he is losing a little money. But , other OEMs going into superpremium gear is going to eat market share. Also, IMHO, his clubs aren't to easy on the eyes...

[Volgolfer]

First, I admire the fact that PXG offers a significant discount to military. You can say what you want about the owner, but that's pretty admirable.

Agree with ephmen that TaylorMade and the likes will come up with "luxury" models that will slowly erode the PXG base. Similar to when Toyota, Honda, etc came out with Lexus, Acura. Owning a BMW and Mercedes used to be a big thing. Now, not so much.

Lastly, I've observed the younger generation is not so enamored with luxury items. They're more grounded, are less "look at me" oriented, have an appreciation for what's needed, and don't really value (and even disdain) excess for the sake of excess. So as baby boomers age-out I think the luxury golf market will go with them.

Here in 5 years, yes. A mere shell of themselves, probably.

[Twism86]

Over, there is a lot of money in golf and people always like nice things. A great golfer can shoot low with almost any equipment that has came out in the last 10 years but there are plenty of people who always want latest and greatest stuff. I likely wont ever ow their clubs but clearly enough people do by now to keep them going.

[DLev45]

IMO, the only way the 5-year under hits is if:

Parsons dies in the next 5 years (he is 69).PXG is losing money.The Trustee of his estate makes a decision to liquidate based on #2.Said Trustee can do #3 without risk of Parsons's beneficiaries firing him and appointing someone else.

[MelloYello]

I don't see the brand lasting.

 

Expensive golf clubs aren't really a sustainable thing in the US. I personally don't see any draw towards their stuff. I'm 34 and I can't recall a single person I know ever mentioning a word about them. As was said earlier, it's a company trying to get some of that baby-boomer retiree $$$. The clocks ticking on that.

 

[duffer987]

Over, easy.

Guy is still a multibillionaire by all accounts. There's no way PXG is making a dent in his day-to-day business. He'll keep on keeping on.

[GFish]

Will still be here. Anyone who thinks they won’t be are crazy or jealous as they can’t own PXG.... LOL

[MelloYello]

LOL...so says the guy trying to push the brand.

[Laznasty]

I'm not sure why you quickly took offense over something that wasn't aimed towards you. But I do love the fact that you use a SC putter, and yet you have a hatred for a premium iron brand.

[MelloYello]

True.

 

Now ask me what I paid for it.

[tungstenplug]

I don't think they will close shop but I'm curious to see if they will ever produce an iron that is clearly better than the competition, as was their original goal

[PreppySlapCut]

I'll take the over on that.

[j.a.]

My concern is not PXG, it’s the traditional club manufacturers that might copy this business model and increases the prices to such level that people will drop golf as it might be too expensive.