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Golf Ball Profit Margins


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When I used to work in the pro shop at our local course the wholesale price for PROV1s was $36 and the Nike One was $32 a dozen, but that was a little over a year ago. There's not much mark up in balls, in fact these were the ones that had the biggest margins. As you can see at about $7-$9 a dozen mark up you are not going to make living off of them unless you sell TONS of them.

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I hear there's a facility in Oceanside that was built by a ball company. :cheesy: And Callaway bought a company for its ball production capacity.

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When I used to work in the pro shop at our local course the wholesale price for PROV1s was $36 and the Nike One was $32 a dozen, but that was a little over a year ago. There's not much mark up in balls, in fact these were the ones that had the biggest margins. As you can see at about $7-$9 a dozen mark up you are not going to make living off of them unless you sell TONS of them.

 

Thank you for the information! Any idea what the mark-up on the cheaper balls was/is? Maybe the Bridgestone e5/6, NXT series, Pinnacle Exception, etc. (just examples). I'm not asking for information on every single ball sold, just curious about the spread between the cheaper balls and the more expensive ones.

 

Thanks again.

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But the margin for the ball manufacturers has to be ludicrous!!! Wasn't it rumored that Titleist makes the majority of it's profit from ball sales, not equipment?? The wholesalers are paying a premium, but the company has to be making a mint!

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  • 2 weeks later...
I was told by a Titleist employee that the out-the-door cost for the ProV1 is $4 a dozen.

 

 

Down here in OZ , PROv1 's are nearly 80 bucks a dozen , and ive heard thru a gold shop that ProV's generate their profits more so that clubs

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A close friend of mine is an engineer who, while working on his masters at MIT, co-op'ed at Titleist.

 

Not sure on the margin, BUT he said that the all of the packaging for a dozen balls cost more than it cost to make the balls.

 

The ball companies are the ones making the profit off the bals, not the courses.

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The profit margin on golf balls is like anything else....furnature, cars, TV's etc etc, the manufacturing cost are depressingly low. I promise you the manufacturing cost on a golf ball is probably less then you believe. The margins on golf balls are much stronger then that on clubs for any company, why do you think Callaway and Taylormade got into to golf ball business?

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The profit margin on golf balls is like anything else....furnature, cars, TV's etc etc, the manufacturing cost are depressingly low. I promise you the manufacturing cost on a golf ball is probably less then you believe. The margins on golf balls are much stronger then that on clubs for any company, why do you think Callaway and Taylormade got into to golf ball business?

 

While I agree totally, I would like to add something. Most of the comments in this tread are related to margins at the retail level. Retailers are paying a premium to stock these things and make very little. The manufacturers are raking it in though...I love capitalism :russian_roulette:

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Having worked for one of the world's largest rubber companies, who also makes balls, and remembering an article couple years back in Golf Digest, the cost to produce a 'tour' ball is less than ten a dozen. BUT, consider packaging, marketing and R&D costs it goes up some, I'd guess reatils gross about 20% and manufacturers make the rest.

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  • 5 years later...

[quote name='golfdad907' timestamp='1208563874' post='1028556']
Having worked for one of the world's largest rubber companies, who also makes balls, and remembering an article couple years back in Golf Digest, the cost to produce a 'tour' ball is less than ten a dozen. BUT, consider packaging, marketing and R&D costs it goes up some, I'd guess reatils gross about 20% and manufacturers make the rest.
[/quote]

This makes sense, the $4 a dozen is just the cost of goods, once you throw in all the cost it takes to run the factory, labor, insurance, electricity, marketing, R and M, etc. etc. etc. I would guess Titleist nets closer to 20% after all bills paid.

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I will echo what others have said here. I work in a pro shop and we make ~$8 per dozen on the Pro V1.

One thing to keep in mind when discussing golf ball profit is the cost of overhead and R&D for manufacturers. While it may only cost $4 to make a dozen Pro V1s, The countless hours of R&D and the cost of the machinery and maintenance in manufacturing plants can be quite expensive.

With that said, I think golf balls are way over priced. They could sell for $10 less per dozen and ball manufacturers would still make a healthy profit.

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[quote name='Hot Rod 71' timestamp='1396787259' post='9030899']
I will echo what others have said here. I work in a pro shop and we make ~$8 per dozen on the Pro V1.

One thing to keep in mind when discussing golf ball profit is the cost of overhead and R&D for manufacturers. While it may only cost $4 to make a dozen Pro V1s, [size=5][b]The countless hours of R&D and the cost of the machinery and maintenance in manufacturing plants can be quite expensive.[/b][/quote][/size]

[size=5][b]Being you acknowledge the ABOVE,,,,,,,,,,[/b][/size]



[size=5][b]How on earth can you possibly say THIS ??? :blink:[/b][/size]


[quote]With that said, [size=5][b]I think golf balls are way over priced[/b][/size]. [size=5][b]They could sell for $10 less per dozen and ball manufacturers would still make a healthy profit.[/b][/size]
[/quote]

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You just come on here to pick apart posts and argue, don't you? Seems to be your m.o.......Sad, really.

My first statement you highlighted was an acknowledgement that there is a lot of overhead in the manufacturing process. But when golf balls cost $4 (per another member's post) to make and then sell for $40 a dozen, that's quite a mark-up.

I think golf ball manufacturers could still make a healthy profit at $30 per dozen, which is why I made the second statement.

But as long as golfers are willing to pay $50 per dozen at retail, then the price will only continue to climb.

Thank you for trolling. Have a nice day.

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[quote name='Hot Rod 71' timestamp='1396787259' post='9030899']
I will echo what others have said here. I work in a pro shop and we make ~$8 per dozen on the Pro V1.

One thing to keep in mind when discussing golf ball profit is the cost of overhead and R&D for manufacturers. While it may only cost $4 to make a dozen Pro V1s, The countless hours of R&D and the cost of the machinery and maintenance in manufacturing plants can be quite expensive.

With that said, I think golf balls are way over priced. They could sell for $10 less per dozen and ball manufacturers would still make a healthy profit.
[/quote]

Most everyone's numbers seem to be Gross numbers. I can tell you as a business owner,, if the shop si making $8 gross there are probably making $2 in net profit at most per dozen. It is simply amazing how much money gets eaten up in overhead just to sell that 1 dozen balls! Purchasing, Shipping, Receiving, Accounting, merchandizing, Sales, Cash Register, Packaging, Inventory, Accounting, Paying the Tax Man then you get to pay for your building, utilities, licensing, advertising, Insurances, Work Comp and that $8 bucks starts to llk like 50 Cents!

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