PXG Pricing Model

[mosesgolf]

Have you guys seen the prices of PXG clubs on their website lately?  Holy smokes.  I guess if you don't have millions in outstanding inventory out to retailers and huge endorsement deals and most orders going through the websites then I guess they can charge what they charge.   There's no going back now.

 

Was this PXG's plan all along?  Give public perception of ultra ultra premium and then few years later undercut everybody.

 

 

Edited July 22, 2021 by mosesgolf

[lefthack]

It costs money to start a company and build market share and channels. Once you have established channels and partnerships and market share, your costs come down and you can charge less.

 

Progress?

[puresurfr]

i see they removed all specials and prices from their website.......is this temporary......is a big SALE on the way ????

 

OOPS, never mind, I just looked and the normal page is back up....hahahahaha I must have caught them updating.

Edited July 22, 2021 by puresurfr

[1Mordrid1]

1 hour ago, mosesgolf said:

Have you guys seen the prices of PXG clubs on their website lately?  Holy smokes.  I guess if you don't have millions in outstanding inventory out to retailers and huge endorsement deals and most orders going through the websites then I guess they can charge what they charge.   There's no going back now.

 

Was this PXG's plan all along?  Give public perception of ultra ultra premium and then few years later undercut everybody.

 

 

 

32 minutes ago, lefthack said:

It costs money to start a company and build market share and channels. Once you have established channels and partnerships and market share, your costs come down and you can charge less.

 

Progress?

This ^^^^. Plus PXG is Parson's brainchild/passion and he has said it was never about making massive profits. They also do not spend what some of the other OEMs spend on endorsement deals, and they do not answer to Wall Street investors. There are a lot of reasons now that they have an established manufacturing process that they can offer clubs at a lower price.

[hammergolf]

33 minutes ago, 1Mordrid1 said:

 

This ^^^^. Plus PXG is Parson's brainchild/passion and he has said it was never about making massive profits. They also do not spend what some of the other OEMs spend on endorsement deals, and they do not answer to Wall Street investors. There are a lot of reasons now that they have an established manufacturing process that they can offer clubs at a lower price.

Parsons net worth is $2.2 Billion. I’m sure if he breaks even each year with PXG he’s thrilled. 

[Lasorcier]

I remember seeing a podcast with him (Parsons) where I think he said that was his goal (i.e., price reduction in the long term).  It might have been no putts given.  At any rate, I think he said his intention is to continue to sell the most recent things for the highest for the people that want the latest and greatest immediately, and sell the older models for progressively cheaper until the stocks run out on the ones that aren't made anymore.  He also mentioned the savings comes from getting the manufacturing process better, not having to have reps go to stores to vie for space, not having a lot of endorsements to pay.  There are a lot of middlemen that he eliminates with that strategy.  His other stated goal was to have people hit their clubs once, because the purchase rate when someone hits them is very high.  Something to that effect.  It was a good podcast.

 

Side note, ordered Gen2 0311T 4-W for $623 for my son.  That is pretty darn cheap.  $89 per club and those are nice irons.  They retailed originally at $350 a club if memory serves (i could be wrong on that).

[mosesgolf]

11 minutes ago, Lasorcier said:

I remember seeing a podcast with him (Parsons) where I think he said that was his goal (i.e., price reduction in the long term).  It might have been no putts given.  At any rate, I think he said his intention is to continue to sell the most recent things for the highest for the people that want the latest and greatest immediately, and sell the older models for progressively cheaper until the stocks run out on the ones that aren't made anymore.  He also mentioned the savings comes from getting the manufacturing process better, not having to have reps go to stores to vie for space, not having a lot of endorsements to pay.  There are a lot of middlemen that he eliminates with that strategy.  His other stated goal was to have people hit their clubs once, because the purchase rate when someone hits them is very high.  Something to that effect.  It was a good podcast.

 

Side note, ordered Gen2 0311T 4-W for $623 for my son.  That is pretty darn cheap.  $89 per club and those are nice irons.  They retailed originally at $350 a club if memory serves (i could be wrong on that).

My previous set were 0311T's and they were fantastic. To compare Titleist T100s 4-PW is $1224.  That to me is a no brainer. I moved onto the XF for more forgiveness and the graphite shafts are easier on this old guys elbows.   

[JoeFrigo]

6 hours ago, Lasorcier said:

I remember seeing a podcast with him (Parsons) where I think he said that was his goal (i.e., price reduction in the long term).  It might have been no putts given.  At any rate, I think he said his intention is to continue to sell the most recent things for the highest for the people that want the latest and greatest immediately, and sell the older models for progressively cheaper until the stocks run out on the ones that aren't made anymore.  He also mentioned the savings comes from getting the manufacturing process better, not having to have reps go to stores to vie for space, not having a lot of endorsements to pay.  There are a lot of middlemen that he eliminates with that strategy.  His other stated goal was to have people hit their clubs once, because the purchase rate when someone hits them is very high.  Something to that effect.  It was a good podcast.

 

Side note, ordered Gen2 0311T 4-W for $623 for my son.  That is pretty darn cheap.  $89 per club and those are nice irons.  They retailed originally at $350 a club if memory serves (i could be wrong on that).

if that was his strategy getting people to hit once and try the product, then it worked on me... I got the Proto X driver last year for $325 ($525 w/ Tensei Pro Orange). Loved the results so much I ended up with a proto 3w and proto 2h when the released earlier this year

 

Impressed with all of the performance I upgraded to Gen4 woods and hybrid. And eventually ill pull the trigger on some irons

[JoeFrigo]

overall the pricing structure has been really weird. To PXG's credit however they did give me a $79 store credit to use bc the Gen4 3w and 2h I bought went down in price after I purchased..... and I didnt even request it, PXG sent an email themselves 

[Lasorcier]

1 hour ago, JoeFrigo said:

if that was his strategy getting people to hit once and try the product, then it worked on me... I

 

Oh it worked on me.  I noticed an immediate difference in feel gen 3 0311T's as compared to the i500 I was previously using.  Highly satisfied.   

[Nateyeight]

13 hours ago, Lasorcier said:

I remember seeing a podcast with him (Parsons) where I think he said that was his goal (i.e., price reduction in the long term).  It might have been no putts given.  At any rate, I think he said his intention is to continue to sell the most recent things for the highest for the people that want the latest and greatest immediately, and sell the older models for progressively cheaper until the stocks run out on the ones that aren't made anymore.  He also mentioned the savings comes from getting the manufacturing process better, not having to have reps go to stores to vie for space, not having a lot of endorsements to pay.  There are a lot of middlemen that he eliminates with that strategy.  His other stated goal was to have people hit their clubs once, because the purchase rate when someone hits them is very high.  Something to that effect.  It was a good podcast.

 

Side note, ordered Gen2 0311T 4-W for $623 for my son.  That is pretty darn cheap.  $89 per club and those are nice irons.  They retailed originally at $350 a club if memory serves (i could be wrong on that).

 

You are right, they didn't have the infrastructure yet and had to sell at a premium price t make a profit, as the company grows things become more cost effective and he will then pass that onto consumers. It was on no putts given. 

 

[Stetson]

PXG is the low cost OEM and the high cost OEM at the same time … rare occurrence 

[Richsgbox]

$289 for a Gen 4 driver??? Might be worth tinkering with. 

[Break68]

Earlier this year or late last year the prices were much lower. Definitely prices have gone up since then.

[BirdieBob]

1 hour ago, Break68 said:

Earlier this year or late last year the prices were much lower. Definitely prices have gone up since then.

Gen 4 had not yet been released, so prices dropped on gen 3 clubs to move them.

Now with Gen 4 out those prices are higher and older Gens are lower.

[JAM01]

0811 Gen 4 driver at $299 is great, especially if one of the no up charge shafts is a fit. 

[TallGuy90]

20 hours ago, hammergolf said:

Parsons net worth is $2.2 Billion. I’m sure if he breaks even each year with PXG he’s thrilled. 

Also if there are no outside investors he doesn’t care. He wants the tax write off. Rich people problems. I rather loose 100k than pay 30k of taxes on 100k 

[hammergolf]

9 minutes ago, TallGuy90 said:

Also if there are no outside investors he doesn’t care. He wants the tax write off. Rich people problems. I rather loose 100k than pay 30k of taxes on 100k 

Exactly. He’s made his billions, PXG is just his passion and hobby.

[ilikegolf26]

2 hours ago, JAM01 said:

0811 Gen 4 driver at $299 is great, especially if one of the no up charge shafts is a fit. 

Does anyone know why most of the PXG staffers (Kokrak, Perez, Dahmen, Hahn) don’t play a PXG driver? Seems kind of concerning they might not perform as well as other manufacturers for higher speed/better players?

[BirdieBob]

12 hours ago, ilikegolf26 said:

Does anyone know why most of the PXG staffers (Kokrak, Perez, Dahmen, Hahn) don’t play a PXG driver? Seems kind of concerning they might not perform as well as other manufacturers for higher speed/better players?

I am sure someone will chime in and say "because they get paid to play those other drivers".

Edited July 23, 2021 by BirdieBob

[Hstead]

10 hours ago, ilikegolf26 said:

Does anyone know why most of the PXG staffers (Kokrak, Perez, Dahmen, Hahn) don’t play a PXG driver? Seems kind of concerning they might not perform as well as other manufacturers for higher speed/better players?

I have noticed this too.  Luke List and Wyndham Clarke are playing the driver.  Personally, I like the Gen4 X better than any driver I have owned.  Part of that might be the Ventus Blue shaft.  I kicked a TSi3 with a Graphite Design Blue Bullet out of the bag that I was fitted for against Callaway, Ping, and the TM Sim.  

 

I bought my son the Proto X.  He and I both swing it around 115 which isn't slow and we both see better dispersion and at least as much ball speed or more than our Titleists.  The drivers are just as good as anything on the market or better, so I am shocked more guys are hitting the driver than those two previously mentioned.

[NorCal678]

Its the same model as tesla.  Start with a high margin high price luxury good that drives demand and keep afloat. Invest in manufacturing/technology(capital to buy expensive forging and cnc machines).  Then ramp up production to gain economies of scale. 

 

I just bought 13 clubs.  0311 forged wedges 60 & 54, gen 3 0311 P 5-g, proto x hybrid 19 & 22, proto x 5 wood, proto x driver.  Out the door...$2800 even.  I had upgraded shafts in irons and wedges.  Same price as if i bought 770s and sims.  If i wasn't lazy i would have probably buy volkey wedges, but the pxg's were soft and i could flop the 60, so i didn't care too much.    

 

     

Edited July 29, 2021 by NorCal678

[ssfranny]

2 hours ago, NorCal678 said:

Its the same model as tesla.  Start with a high margin high price luxury good that drives demand and keep afloat. Invest in manufacturing/technology(capital to buy expensive forging and cnc machines).  Then ramp up production to gain economies of scale. 

 

I just bought 13 clubs.  0311 forged wedges 60 & 54, gen 3 0311 P 5-g, proto x hybrid 19 & 22, proto x 5 wood, proto x driver.  Out the door...$2800 even.  I had upgraded shafts in irons and wedges.  Same price as if i bought 770s and sims.  If i wasn't lazy i would have probably buy volkey wedges, but the pxg's were soft and i could flop the 60, so i didn't care too much.    

 

     

Gen2 at $79 an iron best deal in golf. Also Ive been told apparel side especially with women very profitable and higher margins so they can be more aggressive on clubs pricing too no middleman.   

[lefthack]

The 0211 driver for $230 is damn tempting.

[Krt22]

Their advertising model is more interesting. XTREME! 

[Thats]

On 7/22/2021 at 3:46 PM, Richsgbox said:

$289 for a Gen 4 driver??? Might be worth tinkering with. 

I went to get fit for the Gen 4 driver today. I was fit to a very nice driver in 20 minutes…I had a 1 hour appointment so I hit some Gen 4 irons just for kicks.

 

 

So that’s how I spent 2k today when I was only planning on spending $300 on a driver. 

[Thats]

1 hour ago, Krt22 said:

Their advertising model is more interesting. XTREME! 

I have to say their commercials really put me off on them….but hitting their clubs change everything. 

[Richsgbox]

1 minute ago, Thats said:

I went to get fit for the Gen 4 driver today. I was fit to a very nice driver in 20 minutes…I had a 1 hour appointment so I hit some Gen 4 irons just for kicks.

 

 

So that’s how I spent 2k today when I was only planning on spending $300 on a driver. 

That's a W!

 

How'd that fitting experience go? 

[Thats]

11 minutes ago, Richsgbox said:

That's a W!

 

How'd that fitting experience go? 

First fitting in 5 years. The PXG fitter brought me into the tent to show me the numbers, his reasons why he was making changes, etc.

 

The fact he was doing this and showing me everything really was what sold me. But the fact I could hit everything so smooth and well. 

 

10/10

[shaolingolfer]

22 minutes ago, Thats said:

I went to get fit for the Gen 4 driver today. I was fit to a very nice driver in 20 minutes…I had a 1 hour appointment so I hit some Gen 4 irons just for kicks.

 

 

So that’s how I spent 2k today when I was only planning on spending $300 on a driver. 

The Gen4 irons are super nice, have mine over 2 months now.  I paid for 2 iron fittings before I went to the PXG fitting and the Gen 4 P are the best for my swing, worth every penny.