Golf Ball Profit Margins

[devey07]

Ya not much to be made on the sale of golf balls from what I've heard ... So why am I paying so much for freaking balls ? Whose pockets are getting lined

[gopherguts]

[quote name='Hot Rod 71' timestamp='1396822139' post='9033629']
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. [b]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.[/b]

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.
[/quote]
Trolling ? THAT'S the best you can do when your<cough>reasoning<cough> is shown for what it is ?

What's really sad is how you say one thing one minute and make it almost completely irrelevant in your next cyber-breath.

And once again, in slightly different words, you do the [u]exact same thing[/u]. What's the definition of "stupidity" again ?

That "cost" you refer to is the current cost of making the ball.
But in ONE breath you acknowledge how [b]expensive [/b]it is for [size=8][b]R&D[/b][/size] and in the next breath you bemoan how much "they" are marking up their balls,,,,,,,,,,, What ? The $$$ it costs for all that R&D comes out of thin air ? Or is it ALL, +profit margin of course, recovered in the selling price of the ball ?

So who's the real "troll" ?

[Hot Rod 71]

[quote name='gopherguts' timestamp='1396871668' post='9036995']
[quote name='Hot Rod 71' timestamp='1396822139' post='9033629']
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. [b]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.[/b]

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.
[/quote]
Trolling ? THAT'S the best you can do when your<cough>reasoning<cough> is shown for what it is ?

What's really sad is how you say one thing one minute and make it almost completely irrelevant in your next cyber-breath.

And once again, in slightly different words, you do the [u]exact same thing[/u]. What's the definition of "stupidity" again ?

That "cost" you refer to is the current cost of making the ball.
But in ONE breath you acknowledge how [b]expensive [/b]it is for [size=8][b]R&D[/b][/size] and in the next breath you bemoan how much "they" are marking up their balls,,,,,,,,,,, What ? The $$$ it costs for all that R&D comes out of thin air ? Or is it ALL, +profit margin of course, recovered in the selling price of the ball ?

So who's the real "troll" ?
[/quote]

Get a life.

[cristphoto]

I work in a pro shop and the mark up for Acushnet products is: balls about 15%, clubs about 30% and clothing 50%.

[NJpatbee]

An interesting fact is that Dick's both manufactures and retails Top-Flite and Maxfli. If you look at the low price for the 2014 Gamer Tour, a 3 piece urethene ball for $17.50/dozen, or $34/dozen for a Maxfli 6-piece urethene with 3 models, you have to know that they are still making a big profit on these low numbers - their balls go on sale before they hit the shelf (not that I am complaining). I have to believe that Dick's prices on their own manufactured golf balls is representative of what the wholesale price would be of balls of similar caliber by another manufacturer. Most maufacturers sell their golf balls wholesale and naturally they have to be marked up by the retailer. Compare the Maxfli U/3 for $24.98 to the TM Project (a) for $31.99 - similar balls. Add about $7 to the U/3 and you have about the same price as the Project (a). So when you buy the Project (a) you are not being gouged by the retailer, you are just paying a fair retail price.

So yes, the manufacturer is making the lion's share of the profit, and those "cheap" golf balls cost no less to manufacture than the higher priced brands. This also is true of Titleist, but they have the brand and as markets go, and they make a larger profit.

[1t2golf]

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[hef63303]

Keep in mind that the cost to make something has nothing to do with the price it sells for. The price is determined by what the consumer shows a willingness to pay. What do you think a beer costs to make but we are willing to pay $8 or more at every sports venue in the country?

[Fourmyle of Ceres]

Yep, there's another thread about basically "Why in the world would Ping price their Rapture 3-wood at $450"? People are banging on about how high-tech it is, multimaterial, built like a driver, blah, blah, blah.

The answer of course is "Because they think people will pay $450 for a 3-wood". Same with golf balls. The ProV1 costs four bucks a ball because literally a million people will pay that much for a ProV1.