MAP Pricing(Ping/TM/Titleist/Etc)

[Bulldog]

Hey Ping...

Florida, Texas & Louisiana have a tax free week once a year....all shops that sold Ping products during that time are now in violation of your policys....You need to pull all your accounts from these three states, and any other states that have the tax free days...

What say you Ping???

 

 

 

Tax free week sponsored by states is different than a retailer who discounts the club price to reflect the sales tax to make it "tax" free.

 

Ok, then that is why Edwin Watts, TGW, Golfsmith, etc, have to charge shipping for Ping products, when all other items over $75 are free shipping?

Buy an Ogio golf bag, "free shipping"....buy a Ping golf bag....shipping cost must be included, no discounts on this item....

Try selling a set of Ping clubs, and wave the tax on the sale...and see what happens.

 

Last story I heard, was a shop sold a set of Ping clubs, gave the buyer a free hat (not a Ping hat), and their Ping account was pulled.

[arkstorm]

Last story I heard, was a shop sold a set of Ping clubs, gave the buyer a free hat (not a Ping hat), and their Ping account was pulled.

 

If that's true, then Ping is in violation of the law. That's because Ping may only dictate the price of their own products. If this example is true, Ping is attempting to dictate the price, i.e. free, of an unrelated product, i.e. the hat.

 

Do you know where and when this occured? You can call that State's Attorney General's office and file a criminal consumer protection violation against Ping.

[arkstorm]

By following the Ping guidelines, retailers (like myself) will maintain a higher margin. When I look at my margins across the board for each of my equipment vendors each year, the results are the same. With Taylor, Callaway, Cobra etc, I match prices (although I'm always at 20% off retail = street price). Occassionally I have to drop prices to match sales, specials, etc from the big box stores. I have no problem doing that and I always will do it. With Ping, it's never an issue. All retailers sell for the same price (essentially). If you advertise for less, you're gone.

 

Although it's inconvenient at the end of the year when I want to blow equipment out, in the long-run it's protecting the Golf Professional. In the end, if I opt to drop one of my hard good lines, it won't be Ping because the numbers beat all others. Retailers who complain about their policy are being somewhat shortsighted. Check your own numbers and I bet you would find similar results.

 

On a side note, another way Ping "catches" accounts is through warranty cards. I had a friend who sold a putter at 10% Off to one of his members. The member returned the warranty card along with the required receipt and bam - he was gone.

 

No doubt that by following Ping's guidelines the retailers benefit. I agree whole-heartedly. Its the consumer that suffers from price fixing.

[Qualitydaydream]

Who here considers ping a premium brand anyway?

 

I say ping can do whatever it wants with its MAPP, but its about time the shops get together and make it known that they wont put up with their unforgiving mapp rules anymore.

 

To me its simple, they want to keep higher prices on a cheap product for the sake of their image.

 

Lets let consumers control the market not the OEM, so if your un happy with this urge your local shop to drop the account. not violate, drop the account. make a large ping purchase, drop the account then sell it at cost!

 

If ping were to lose say 10 accounts in every state they would feel the hurt.

 

MAPP prices are ok, the unforgiving manner that ping pulls the account is not.

[Bulldog]

Last story I heard, was a shop sold a set of Ping clubs, gave the buyer a free hat (not a Ping hat), and their Ping account was pulled.

 

If that's true, then Ping is in violation of the law. That's because Ping may only dictate the price of their own products. If this example is true, Ping is attempting to dictate the price, i.e. free, of an unrelated product, i.e. the hat.

 

Do you know where and when this occured? You can call that State's Attorney General's office and file a criminal consumer protection violation against Ping.

 

That was second, maybe third hand info....as noted, "Last story I heard". I will see if I can follow up and confirm it.

I do know my club had their account pulled, and I will NOT be able to go to any demo days there, which I was looking forward to, and the Pro shop will be Pingless.

Bulldog...

[nearfall152]

Who here considers ping a premium brand anyway?

 

I say ping can do whatever it wants with its MAPP, but its about time the shops get together and make it known that they wont put up with their unforgiving mapp rules anymore.

 

To me its simple, they want to keep higher prices on a cheap product for the sake of their image.

 

Lets let consumers control the market not the OEM, so if your un happy with this urge your local shop to drop the account. not violate, drop the account. make a large ping purchase, drop the account then sell it at cost!

 

If ping were to lose say 10 accounts in every state they would feel the hurt.

 

MAPP prices are ok, the unforgiving manner that ping pulls the account is not.

 

Naturally, opinoins will vary, but I really don't think I'm alone in considering PING a premium brand. They've been inovators fo years now, and their influence has been felt in the industry since their inception.

 

Now unchromed heads may not appeal to those who like shiney objects and exorbanant prices (Homna and every other imported club I've ever seen) but different strokes for different folks.

 

Protecting your product price point is very important. Like them or not, compare the value of a five year old PING club with a Taylor Made counterpart; it seems to be working for them. Their prices aren't beat up on a continual basis. They've likely factored in the loss of accounts over all this into their risk managment business model, and they're likely willing to take the hit of many upset consumers to defend their price point.

[golfnick]

I don't know if anyone has already said this, but MAP pricing is actually to protect retailers - both large and small. Pings philosphy is based on custom fitting which requires customers to go to stores or pro shops to try the clubs and be custom fit. Ping wants retailers to have a custom fitting cart, an area to try the clubs, and trained employees to fit the clubs. All of these things come with a large cost. These stores must make a significant margin on their club sales to cover their fixed overhead costs. There are other golf store, especially internet only golf store, that do not have the aformentioned overhead costs. These stores can easily discount clubs and stay in business. They can stay in business at very small margins because they can be run by a couple of people and carry very little inventory. PING and other manufacturers do not want customers to go to the high overhead shops to try the clubs and be custom fit then order the clubs on the internet at a lower cost. In the short run the high overhead retailers discount clubs to compete with the internet retailers (They still make a profit on each transaction), but if the marginal profits from each transaction do not cover the overhead costs, firms will exit the industry. If the manufacturers do not have a way to ensure the retailers margins the market will become dominated by internet retailers and there will be nowhere to try new golf clubs.

[lowdrive]

Personally, I don't see how the Sherman Act would come into effect since Ping does not hold a monopoly position in their industry. There are many other choices for the consumer if they don't like Ping's price.

If I hand make USB cables and want to them to sell for at least $10,000 each, I really don't believe the government would consider that a problem.

 

I did hear about this Ping issue a couple of years ago, and the actual response from Ping was that they had to act consistently in their enforement. Therefore, even "small" infractions get the same response. Otherwise, Ping felt would be open to lawsuits.

[arkstorm]

Personally, I don't see how the Sherman Act would come into effect since Ping does not hold a monopoly position in their industry. There are many other choices for the consumer if they don't like Ping's price.

If I hand make USB cables and want to them to sell for at least $10,000 each, I really don't believe the government would consider that a problem.

 

I did hear about this Ping issue a couple of years ago, and the actual response from Ping was that they had to act consistently in their enforement. Therefore, even "small" infractions get the same response. Otherwise, Ping felt would be open to lawsuits.

 

Ping's response is exactly right regarding equal enforcement of their MAP.

 

However, the Sherman Act does not only prevent monopolies. It also contains certain consumer protection language that the States have adopted.

 

Now, as for your USB cable example...right you are, that you may sell your cable for $10,000. However, you may not enter into an agreement with a reseller (retailer) of your cable that forces him to sell it at $10,000 or whatever price you stipulate.

 

The fine line which Ping walks is this: They may not enter into an agreement with their retailers. However, they may dictate a unilateral policy which puts the retailer on notice that if they sell for less than the MAP price they will have their account pulled.

[hitchheiken]

Well personaly I think that it is a good thing that they set the price, it takes care of the small stores and "Green Grass" accounts, so that large retail store with huge buying power cant get a discout for buying in bulk then undersell everyone else. This is Pings way (Callaway is not as helpfull to the little guy as they make themselves out to be) of helping out the smaller accounts,... it actualy helps them KEEP business. I you were a small golf shop and knew that you could not afford to bring in Ping products and sell them for the same price as the big guys, why would you even carry Ping or any other manufactures that you could not compeate with?,.

[spro]

Just noticed this in our local paper today. Thought everyone might like to comment. You can view the full story at www.augustachronicle.com -- search for Ping:

 

----Story----

 

Ping cancels accounts with local golf stores

By David Westin| Staff Writer

Thursday, September 28, 2006 A prominent golf equipment company's stance against retailers discounting its products has angered two area golf shops that give military customers a break.

 

L.D. Waters, the owner of Bonaventure Discount Golf, expressed regret at having ties cut with Ping over his discount for members of the military. ''I've been doing business with Ping since Ping went into business,'' Mr. Waters said.

Click photo for optionsBecause of the military discounts, Bonaventure Discount Golf in Augusta and Gordon Lakes Golf Course on Fort Gordon no longer receive Ping products. And even if they could, they would refuse to sell them now.

 

Karsten Manufacturing Corp. of Phoenix, Ariz., which has a registered trademark on the Ping brand, discontinued its Bonaventure and Gordon Lakes accounts in August.

 

In a letter to the shops, Ping said Bonaventure and Gordon Lakes discounted Ping clubs below Ping's "Improved Fitting, Internet Transactions and Price Policy."

 

Both shops give 10 percent discounts to military members on all purchases. Gordon Lakes does it for active and retired servicemen; Bonaventure gives the discount for active servicemen.

 

Bonaventure owner L.D.Waters received his closure of account letter Aug. 7. Gordon Lakes head pro Bill Fumai got his letter Aug. 22.

 

Bonaventure does more than $5 million in business a year, Mr. Waters said.

 

"They cut off Bonaventure? That's huge," Mr. Fumai said. "If they cut off Bonaventure, they probably cut off a lot of shops. It must be nice to be in the position to cut off your customers."

 

Mr. Waters, a 77-year-old former Marine who served in World War II and the Korean War, started giving the military discount about a year ago when he noticed servicemen in his shop who were being deployed to Iraq.

 

"I'm doing it for those boys putting their lives on the line," Mr. Waters said. "I know they don't get paid enough."

 

"That's the craziest thing I've ever heard in my life, especially now," Mr. Waters said of Ping's policy. "It just burns me up that they won't allow the military to get a 10 percent discount."

 

Gordon Lakes, whose membership is 98 percent military, has always given discounts to active and retired military members, Mr. Fumai said.

 

Bonaventure and Gordon Lakes didn't hide the fact that they gave discounts to the military. However, along with their closure of account letters, Ping enclosed a receipt from a customer at each shop who received the military discount. That led to the cancellation of their Ping accounts.

 

"It's like the gestapo is back; they're checking receipts to see what we sell it at," Mr. Fumai said. In Augusta, where so many active and retired servicemen reside because of the proximity to Fort Gordon, Ping's move has struck a nerve.

 

"I've been doing this for 30 years, and this is the first time I've seen a company do this," Mr. Fumai said. "Why do they care?"

 

"It's something we put in place to protect our brand," said Bill Gates, Ping's director of distribution and associate general counsel.

 

According to Mr. Gates, no exceptions can be made when it comes to shops selling their clubs under the suggested price listed in their agreement (there is no contract).

 

"It's something we apply to all of our accounts consistently, and we don't have exceptions to it," Mr. Gates said. "We don't sell direct to the public; we sell to retailers, and we do have certain policies in place with them. Those policies are confidential between us and the account."

 

Mr. Gates did say that once a retailer buys Ping products, they own them, but must abide by their unwritten agreement with Ping.

 

If Mr. Waters and Gordon Lakes have been discounting Ping clubs to the military, why have they been cut off now, and both within 15 days of each other?

 

"It's something that's been in place for several years," Mr. Gates said of the no-discount rule.

 

"They have had it for years, but didn't pay attention to it because their business has been off," said Mr. Waters, who believes Ping is now enforcing the rule because "they've been hot the last few years."

 

Mr. Gates pointed out that Ping has more than 1,000 employees and has maintained its operation in the United States while other golf companies have moved overseas, where labor is cheaper.

 

"We think it is very important to employ Americans," Mr. Gates said.

 

None of that soothed Mr. Waters or Mr. Fumai, who believe an exception should be made that allows discounts for those with military ties.

 

Mr. Fumai was so angered when he got the letter from Ping that he took the "$3,000 to $4,000" worth of Ping merchandise in his shop and marked it down 50 percent.

 

"I sold it all," he said.

 

Mr. Fumai said when customers ask him about why he doesn't have Ping merchandise, "I tell them the story.

 

"They are shocked that they can tell us what price to sell to soldiers. That's terrible," he said.

 

When Gordon Lakes was cut off by Ping, Mr. Fumai called Bill Sport, the golf program manager for Army Sports.

 

"He said over half of the 63 military golf courses have been cut off," Mr. Fumai said.

 

Said Mr. Gates: "I understand the desire of Mr. Waters and the pride they (Bonaventure and Gordon Lakes Golf Course) have in being associated with the military, absolutely. Ping has the upmost respect for the people in uniform and all the sacrifices they make and their families make. This is not about any particular group."

 

Mr. Waters, who says he has about $100,000 in Ping inventory, plans to have a sale soon.

 

"I'm going to sell it close to cost," he said. "I'm going to unload them just to get the name out of here. I'm going to sell it until it's gone."

 

In Ping's account closure letter to Gordon Lakes, the company wrote that the account "may or may not be reopened in a year," Mr. Fumai said.

 

Mr. Fumai's not interested, and neither is Mr. Waters.

 

"If they're going to dictate what I sell to servicemen, to heck with them. I don't need them," Mr. Fumai said.

 

"I don't want to be put back on because I wouldn't have the product," Mr. Waters said.

 

It ends a 48-year relationship that Mr. Waters has had with Ping, which was founded by Karsten Solheim in 1962. Mr. Solheim died in 2000.

 

"Old man (Karsten) Solheim used to come in a store I had with my brother in Savannah in 1958," Mr. Waters said. "I've been doing business with Ping since Ping went into business."

[3puttbert]

As a life long owner of Ping irons and having never played any other brand I must say I am disappointed. I understand their position and the need for them to maintain consistent pricing policies but it seems some what hard nosed in this case. Even more disturbing is the closing of the Military course accounts.

[warbirdlover]

I wished I would have known this before I bought my new G5's this summer. I would have bought something else.

[sladevol]

I understand having restrictions on discounts, but this is just stupid. These men and women in the military protect our way of life, and get paid very little for it. So if Ping, cannot make an exception for them, I think their are other brands out their more deserving of our business. I also cannot buy into the whole protecting American jobs logic. I think the military is one of most important jobs that should be considered. The discount would pay off for Ping down the road when the soldiers leave the service. I do like the fact that the shops will not take Ping back as an account.

[arkstorm]

Ping has been Nazi'esque about enforcing this policy and in a word, their behavior has been: DISGUSTING.

 

That's why I am calling for a Ping boycott. Consumers need to take control of the market. We can't allow manufacturers to have control or we're all going to pay whatever exorbitant price they demand.

 

**BOYCOTT PING**

[lskoncepts]

I use to have a joint account with Ping with a local pro here in town. It was set up about 4 years ago and I'm no longer part of the account. However, after the way I was treated personally with the Ping reps and after hearing about them closing all of these accounts I will NEVER own another Ping product. They make some great clubs but to "preserve" their brand is horse crap.

[NutmegOfConsolation]

Aren't these shops selling PING's goods at a discounted rate in violation of The Sherman Act 13, 13a, which would therefore put PING in violation as well unless they stop selling to them?

[ryanpgm]

As a golf retailer, why does Ping care if I lose money? Honestly, I would rather help our service men and women out who are giving their lives for our freedom, so that Ping can exist. It is my merchandise, I bought it, and you can't tell me what to do with it. Just wanted to vent a little. Also, can you have an unwritten agreement legally? I asked the rep about it, and he won't talk to anyone about what the company's policies are.

[spro]

What does it matter what price retailers sell it for? If a business OWNER wants to give a disocunt to Military, Widowers, whoever, he should be able to do it. Ping makes their money - so what do they care what price the retailers sell it for? I'm sure Karsten wouldn't approve of this is he was still with us.

[arkstorm]

Aren't these shops selling PING's goods at a discounted rate in violation of The Sherman Act 13, 13a, which would therefore put PING in violation as well unless they stop selling to them?

 

 

As a golf retailer, why does Ping care if I lose money? Honestly, I would rather help our service men and women out who are giving their lives for our freedom, so that Ping can exist. It is my merchandise, I bought it, and you can't tell me what to do with it. Just wanted to vent a little. Also, can you have an unwritten agreement legally? I asked the rep about it, and he won't talk to anyone about what the company's policies are.

 

I'm rehashing, but I realize this thread is super long...

 

But consumer laws allow a manufacturer to set a pricing policy so long as it is not an agreement with the re-seller. This practice is not a violation of the Sherman Act (although it walks a fine line). The reason why the Ping rep is not allowed to discuss it is that in so doing it would become an agreement (which is prohibited by the Sherman and Colgate Acts).

 

So its not an unwritten agreement, so much as it is a stated policy, and thus, legal. If Ping demanded that the re-seller agreed to the policy it would become an unlawful vertical price fixing agreement.

[bigkidneys]

I am truly glad this forum has brought this up. I am in the military and the military course I normally play sells Ping products. Can someone hyperlink the military article that was pasted in one of the above comments? I would like to print it up and see how many military courses I can get this out to. I myself have not bought a Ping product within the last 5 years as I never truly liked them. As a military person (12 years) I have never asked for a discount for anything. However, now knowing what has transpired through this article, I would love to spend the extra 3-4 hours a day I have doing everything I possibly can to have as many military courses as possibly pull all their ping products off their shelves. The consumer is what drives the prices, not the company. And if what I am going to do is illegal, then please tell Ping to sue me! As someone said before, us military personnel make very little money anyway :beach:

[ryanpgm]

Let's hear from some Ping equipment players and get their comments on this situation.

[spro]

You can go to www.augustachronicle.com - you have to sign up to be a user, but it's free. Once there, just search for PING and you'll see the article.

[arkstorm]

Let's hear from some Ping equipment players and get their comments on this situation.

 

If you page back on this (lengthy) thread some Ping users have commented that they like the policy because they are comforted by knowing that the next guy over didn't pay less for his Ping clubs than they did. Weak argument, if you ask me. Kind of sounds like misery loves company. Why wouldn't you want competition to determine price so that you pay the lowest price possible?

[Ty Webb]

I am not in the military but the article on this subject made me want to throw up.... Ping was pissed that people that put their lives on the line for everyones freedom and are grossly underpaid were getting 10% off... 10 freakin' percent!!! WTF Ping!!!! I hope Bigkidneys gets Ping booted out of all military courses. Fu&k Ping I wouldnt play their $hit for free now!!! Here is the article for those who missed it:

 

Ping cancels accounts with local golf stores By David Westin | Staff Writer Thursday, September 28, 2006

 

A prominent golf equipment company's stance against retailers discounting its products has angered two area golf shops that give military customers a break.

 

Because of the military discounts, Bonaventure Discount Golf in Augusta and Gordon Lakes Golf Course on Fort Gordon no longer receive Ping products. And even if they could, they would refuse to sell them now.

 

Karsten Manufacturing Corp. of Phoenix, Ariz., which has a registered trademark on the Ping brand, discontinued its Bonaventure and Gordon Lakes accounts in August.

 

In a letter to the shops, Ping said Bonaventure and Gordon Lakes discounted Ping clubs below Ping's "Improved Fitting, Internet Transactions and Price Policy."

 

Both shops give 10 percent discounts to military members on all purchases. Gordon Lakes does it for active and retired servicemen; Bonaventure gives the discount for active servicemen.

 

Bonaventure owner L.D.Waters received his closure of account letter Aug. 7. Gordon Lakes head pro Bill Fumai got his letter Aug. 22.

 

Bonaventure does more than $5 million in business a year, Mr. Waters said.

 

"They cut off Bonaventure? That's huge," Mr. Fumai said. "If they cut off Bonaventure, they probably cut off a lot of shops. It must be nice to be in the position to cut off your customers."

 

Mr. Waters, a 77-year-old former Marine who served in World War II and the Korean War, started giving the military discount about a year ago when he noticed servicemen in his shop who were being deployed to Iraq.

 

"I'm doing it for those boys putting their lives on the line," Mr. Waters said. "I know they don't get paid enough."

 

"That's the craziest thing I've ever heard in my life, especially now," Mr. Waters said of Ping's policy. "It just burns me up that they won't allow the military to get a 10 percent discount."

 

Gordon Lakes, whose membership is 98 percent military, has always given discounts to active and retired military members, Mr. Fumai said.

 

Bonaventure and Gordon Lakes didn't hide the fact that they gave discounts to the military. However, along with their closure of account letters, Ping enclosed a receipt from a customer at each shop who received the military discount. That led to the cancellation of their Ping accounts.

 

"It's like the gestapo is back; they're checking receipts to see what we sell it at," Mr. Fumai said. In Augusta, where so many active and retired servicemen reside because of the proximity to Fort Gordon, Ping's move has struck a nerve.

 

"I've been doing this for 30 years, and this is the first time I've seen a company do this," Mr. Fumai said. "Why do they care?"

 

"It's something we put in place to protect our brand," said Bill Gates, Ping's director of distribution and associate general counsel.

 

According to Mr. Gates, no exceptions can be made when it comes to shops selling their clubs under the suggested price listed in their agreement (there is no contract).

 

"It's something we apply to all of our accounts consistently, and we don't have exceptions to it," Mr. Gates said. "We don't sell direct to the public; we sell to retailers, and we do have certain policies in place with them. Those policies are confidential between us and the account."

 

Mr. Gates did say that once a retailer buys Ping products, they own them, but must abide by their unwritten agreement with Ping.

 

If Mr. Waters and Gordon Lakes have been discounting Ping clubs to the military, why have they been cut off now, and both within 15 days of each other?

 

"It's something that's been in place for several years," Mr. Gates said of the no-discount rule.

 

"They have had it for years, but didn't pay attention to it because their business has been off," said Mr. Waters, who believes Ping is now enforcing the rule because "they've been hot the last few years."

 

Mr. Gates pointed out that Ping has more than 1,000 employees and has maintained its operation in the United States while other golf companies have moved overseas, where labor is cheaper.

 

"We think it is very important to employ Americans," Mr. Gates said.

 

None of that soothed Mr. Waters or Mr. Fumai, who believe an exception should be made that allows discounts for those with military ties.

 

Mr. Fumai was so angered when he got the letter from Ping that he took the "$3,000 to $4,000" worth of Ping merchandise in his shop and marked it down 50 percent.

 

"I sold it all," he said.

 

Mr. Fumai said when customers ask him about why he doesn't have Ping merchandise, "I tell them the story.

 

"They are shocked that they can tell us what price to sell to soldiers. That's terrible," he said.

 

When Gordon Lakes was cut off by Ping, Mr. Fumai called Bill Sport, the golf program manager for Army Sports.

 

"He said over half of the 63 military golf courses have been cut off," Mr. Fumai said.

 

Said Mr. Gates: "I understand the desire of Mr. Waters and the pride they (Bonaventure and Gordon Lakes Golf Course) have in being associated with the military, absolutely. Ping has the upmost respect for the people in uniform and all the sacrifices they make and their families make. This is not about any particular group."

 

Mr. Waters, who says he has about $100,000 in Ping inventory, plans to have a sale soon.

 

"I'm going to sell it close to cost," he said. "I'm going to unload them just to get the name out of here. I'm going to sell it until it's gone."

 

In Ping's account closure letter to Gordon Lakes, the company wrote that the account "may or may not be reopened in a year," Mr. Fumai said.

 

Mr. Fumai's not interested, and neither is Mr. Waters.

 

"If they're going to dictate what I sell to servicemen, to heck with them. I don't need them," Mr. Fumai said.

 

"I don't want to be put back on because I wouldn't have the product," Mr. Waters said.

 

It ends a 48-year relationship that Mr. Waters has had with Ping, which was founded by Karsten Solheim in 1962. Mr. Solheim died in 2000.

 

"Old man (Karsten) Solheim used to come in a store I had with my brother in Savannah in 1958," Mr. Waters said. "I've been doing business with Ping since Ping went into business."

 

Reach David Westin at (706) 724-0851 or [email protected].

 

PING'S LETTER Excerpts from the letter Bonaventure Golf received from Bill Gates, PING's director of distribution and associate general counsel:

 

"Please do not call your field representative regarding the following ... When PING adopted the iFIT Pricing Policy, it unilaterally decided to close accounts that sell a PING product for less than its Blue Column Price. As a result, Account Number 16906 is closed effective immediately. ... Thank you for the time and effort you spent promoting the PING brand. We wish you the best in your future efforts promoting the game of golf."

 

From the Thursday, September 28, 2006 edition of the Augusta Chronicle

[Golf_Beauty]

I never liked PING in the first place. :beach:

[elcid93]

Articles like this make Taylor Made, Nike, Callaway, and others salivate. This seems like the perfect opportunity for these companies to offer military members a super discount, just to stick it to Ping. Then advertise, "Since Ping doesn't support our Military Men and Women, it is our pleasure to give back something to those who have given so much."

 

I am in the military, and will pass this info on to all my friends who are golfers. :beach:

[evanaamodt]

Ya for as long as I live I will never own a ping club and will not recommend them to anyone! They are getting absolutely ridiculious!!

[rgjusa]

I'd like to see this turn into a PR nightmare for Ping - but I don't think that, given the amount of advertising Ping buys in the glossies, that it will get much coverage outside of forums. I do hope I am wrong. It would be nice to see some of the Ping staff players walk away from their contracts. CDM seems most likely the type that would do it being extremely patriotic and Pings actions seem unpatriotic to me. Some of those people that hang out here and know him might do well to run it by him.

[Gxgolfer]

 

Augusta Chronicle:

 

The Phoenix, Ariz.-based company came under fire last week for cutting off the accounts of two Augusta-area golf shops that discounted Ping clubs. The discounts were limited to the military.

 

"Right now we're looking at different options, different ways to determine the best way as a corporate citizen to demonstrate that appreciation to military personnel," said Bill Gates, Ping's director of distribution and associate general counsel.

 

Ping plans to respond with a plan for the military as early as this week, Mr. Gates said.

 

"We're going to have something we're going to roll out to fully show our appreciation (for the military)," he said. "We look forward to the opportunity to work with military leaders for the best way to communicate this appreciation."

 

Mr. Gates said company officials were still working on the plan and would not give any details.

 

The Augusta-area shops in question - Bonaventure Discount Golf and Gordon Lakes Golf Course - violated their unilateral policy agreement with Ping by discounting their clubs below the brand's improved fitting, Internet transactions and pricing policy.

 

Ten percent discounts on Ping clubs were limited to retired and active-duty military at Gordon Lakes and active military at Bonaventure. The money lost on the discounts came out of the pocket of the two shops, who owned the Ping products.

 

Mr. Gates said ownership didn't matter, explaining that Ping's policy was created to "protect our brand."

 

In protest, Gordon Lakes marked down its Ping equipment by 50 percent and sold all of it. Late last week, Bonaventure started marking down its $100,000 in Ping inventory by as much as 30 percent to active-duty military. The remaining equipment goes on sale at 30 percent off to the public starting Monday.

 

Bonaventure owner L.D. Waters, a Marine veteran of two wars, and Gordon Lakes head pro Bill Fumai were critical of Ping for what they considered a lack of regard for the military, especially during a time of war.

 

Told that Ping is now working on a way to give the military a break, Mr. Waters said "anything they'll do, any break they'll give the military, I'm all for it.

 

"Believe me," Mr. Waters said, "the good part of this is Ping is going to come up with something. It might be as much as 15 percent off for the military. It might be a rebate or they might let the merchandiser do it."

 

Mr. Waters and Mr. Fumai weren't the only ones upset about being dropped by Ping for giving military discounts. Retired and active military in the Augusta area, and other residents, called or wrote Ping in protest.

 

An e-mail to The Augusta Chronicle pointed out the area's military ties to the Masters Tournament, noting that "Arnie's Army," the name for Arnold Palmer's fans, came from Fort Gordon servicemen who followed him at Augusta National Golf Course.

 

In the golf business, a pro shop at an area country club that still has a contract with Ping dropped its prices on three styles of Ping putters by as much as $45.

 

Other media picked up the story.

 

"We certainly understand that," Mr. Gates said of residents' concerns. "We have had some calls. We understand people feel very passionate about this issue, and we do, too."

 

Ping has said from the outset that it cannot make changes in its pricing policy for a particular group.

 

Mr. Gates said the new plan will not be "an exception to the policy. Right now, we need to maintain the consistency of our policy. But there are other things we can do that ... will show our appreciation to the military."

 

Mr. Gates defended Ping's record with the military, saying Karsten Manufacturing Corp. holds jobs for those stationed overseas, employs veterans and has sent free Ping clubs to Bosnia, Afghanistan and Iraq in the past.

 

"We have never targeted the military in any way," he said. "We've had hundreds of closures of accounts that had nothing to do with the military."

 

Mr. Waters isn't surprised Ping is working on a plan for military customers. He said when the issue came to light it would be "an easy bet" that Ping would make some concession within 30 days.

 

"It was a disaster and it's still a disaster," Mr. Waters said. "They're getting more bad publicity every minute they don't do it. It doesn't matter what they do, some of the damage has been done to them. Too many retired military are really mad about this thing."

 

Whatever Ping does, Mr. Waters said, will force other golf equipment manufacturers to follow suit with military breaks.

 

"If Ping does it, Titleist has got to do it, and TaylorMade has got to do it," Mr. Waters said. "It will be a good thing for the military. With all these big companies, they can't have one doing it and the others not."

 

Indeed, Mr. Waters said he already has received a call from a major golf equipment company saying if he kept the receipts from the military discounts he gives on their clubs, they would give him credit on his next purchases.

 

No matter what Ping decides, once Mr. Waters unloads his stock of the brand, he won't carry it again, even if his account is re-opened.

 

"I've told everybody I won't sell Ping's ever, under no circumstance," Mr. Waters said.

 

Mr. Waters said it wouldn't matter if Ping Chairman and CEO John Solheim came to Augusta to talk to him.

 

"I'm through with them," he said.