Two tour players left PXG Last week, Who's next?

[GoGoErky]

They weren’t giving away drivers to sell clubs. They were already selling clubs just fine. They ran sales to get rid of old inventory.

[JD3]

People were posting the free driver is what made them pull the trigger on the irons....it makes sense if you're in the market for a driver that effectively knocks another $500+ off the purchase price. In any case why did they have so much inventory that had to literally give it away? Every review I saw of that generation driver said it didn't perform anyway. Right now they're basically rolling the dice on Zack Johnson having any fluke major win....not holding my breath. And fat Perez? Lol no thanks. Even whats left of their roster smells like a company in trouble.

[GoGoErky]

They aren’t really banking on anyone ha ing a win. They have been awarded inc 500 for one of the fastest growing companies last year and are opening more retail stores.

Free stuff is nice and if one doesn’t like it they could sell and make a profit. People will take a chance on stuff that is cheap.

 

[Fairways_and_Greens]

You led off with how you’re in the know. You tell us (or those that care).

[JD3]

there was never anything new about their line but the price point ... nickent arc made elastomer filled forged irons years ago. imo they were actually better than pxg yet the product line didnt go anywhere and the company didnt make it. their drivers are simply poor man knock offs of ping drivers, yet priced higher ... imo this business model is simply not sustainable. the major OEMs like TM, Callaway, Titleist, Ping simply know much more about making a superior product, and their knowledge lead just grows. even the Asian brands like Mizuno, Srixon and Honma are ahead of PXG.

[HowAboutNoScott]

Inventory seems to be their biggest issue but then again, a sale on old stock to make way for new inventory is a common practice.

I don’t know much about Tour players and their contracts but it seems cracking into the scene 4 years ago and picking up a big name player in the top 20 is really hard to do. It seems their goal is to aim for younger players and grow with them. This shows a long term plan

[grm24]

It seems their goal is to aim for younger players and grow with them. This shows a long term plan <<

Looking at the ages of the current PXG PGA tour staff and those players that have recently left PXG (Horschel, Reavie, Schwartzel) it does not appear that signing younger players is part of the PXG strategy. Only one player in his 20's (Wyndham Clark) who by professional touring standards is average at best. Not much of a long term plan for PGA Tour players.

[Sexygolfer2020]

Bob parsons is too proud to let pxg go down without him. They have good product but not the best. They are not winning and that is critical for success. When Ryan Moore went head to head with Mcilroy in the tour championship, that gave BP and his brand exposure and that was a defining moment. We are at stage 3 and it looked like Wyndham Clark was going to break through or Billy Ho was going to get another win for Bobby. Instead we saw a collapse which happens all the time on tour. With that being said i believe Bob is to involve and should step aside and let someone who has been vetted take the reigns and seek out top talent on tour and make the investment. No one cares if engineers have no time restraints and unlimited cash. What golfers want to see is wins. So far pxg has come up short and the vultures will not stop attacking. If pxg can win a major and a few wins this year, it would change the landscape of golf. The engineers came from Ping and ping keeps winning. Right now pxg is at the bottom when it comes to the pga tour and it is not a good look for the brand.

[GoGoErky]

If pxg is doing so bad because no one on their staff wins then how did they get recognized as one of the top growing companies by inc 500? Why do they have as much or more market share as some of the mainstream brands like cobra and Wilson and not far behind mizuno. Would a failing brand be opening fitting/retail stores and expanding their campus for better player support and creating an apparel design lab as well as opening a fully staffed hq in Asia.

Its one thing to hate on pxg but the facts don’t support most people’s claims.

[Sexygolfer2020]

If stating facts is hate I am loss. Do not believe everything you read. Pxg has a strong financial arm and opening fitting stores does not mean success. Krispy Kreme was opening stores like crazy and they collapse. Anyone that is educated in business, know that pxg business model is not sustainable. Less people are playing golf, golf courses are closing, country clubs are going semi private and new golfers are not spending 5k for a set of new clubs. To survive in today's industry, a company's strategy has to be accessible across the playing field and PXG has made it clear that is not there market. Top talent want to play the best and nothing but the best. What makes Taylormade, callaway, ping and Titleist so dominant in market share is that their equipment is accessible to millions of golfers who want to play what their favorite golfers are playing. If the starting price for LeBron sneakers was $1000 or Jordan's $1000 do you think Nike would be sustainable? Pxg needs to change strategy, because the verdict is out and it is the same across the board, why pay 3 times more for a set which is not as good. To conclude, 82 million in sales is a fraction of the industry. No dent is being made. Callaway operating profit was 143 million for 2019. Do I want to see pxg succeed? Absolutely, but reality is with there current sales model, it is impossible. Bob Parsons will either go broke trying to keep them afloat or sell the company and swallow his pride.

[3jacker]

Where did you get your market share data by golf company?

[Sexygolfer2020]

https://www.prnewswire.com/news-releases/callaway-golf-company-announces-record-2019-full-year-net-sales-and-operating-profit-and-provides-2020-financial-guidance-301002200.html

[3jacker]

That is just Callaway's financials and supplemental data. Need entire market data to make a statement like GoGoErky did. Not that I disbelieve him, I'd just be interested to see it if it's available. Would be a fun read.

[GoGoErky]

I have a buddy that works in sales and gets access to the sales data. Last October pxgs market share was 3.3% for irons. Mizuno was 4.4, Cobra was 3.2 and Wilson and Cleveland were under 1%.

Ping had a significant drop and titleist had a double digit increase.

[3jacker]

Interesting. Worldwide market? According to Callaway's financials, they had a big revenue jump (came at great cost though). Would be cool to see it all laid out in one place, but generally you have to pay for that type of data.

[GoGoErky]

PXG isn’t in trying to gain market share on the big names. They are going after the market that doesn’t care about the cost and what’s the exclusivity and luxury tag. They aren’t producing hundreds of thousands units of drivers or irons to sell like the big names. It’s about the brand and the experience. So comparing them to those brands isn’t apples to apples. Despite that they have taken market share away from mainstream brands.

[Sexygolfer2020]

And you are convince that market is going to spend 500 million a year? Wealthy people buy real estate, they invest. I can guarantee you the richest golfers probably playing 5-6 year old equipment maybe older

[3jacker]

When the cost is what gives something status, the buyers most certainly do care about the cost.

[GoGoErky]

you might want to see how many celebrities have pxg in the bag. I don’t know how much it still happens but they had of their clients would fly in to the local airport on their private jets, get fit, pay the fee to have the clubs made on the spot which is another $1000 and then fly out after they were finished.

there are plenty of people that don’t care what a product costs and will spend the money to have it.

[Sexygolfer2020]

And as I stated that is a small market. We are talking about golf clubs here not Bugattis and koenigsegg's supercars. If you are swinging a 5k set at your country club and getting spanked on the course by your buddy who is playing a $900 set of Taylormade irons it is a shame. I have been in numerous private country club locker rooms and have never seen a set of pxg irons. I have seen a set of gen 2 xf, nice looking in person at a public course where the round was $28. I can guarantee you the super rich are not buying pxg irons. If you are convinced that hedge fund managers or pharma CEO's will pay 100k to eat breakfast with BP and to get fitted you have lost your mind. Remember it is not the clubs, it is the person swinging them. Put me on the record, pxg sales model will change or they will be remembered in history as the upstart golf company who was boisterous in their predictions but it turned out to be a fairy tale. Pga tour is about winning and PXG continues to fail in this area. 2021 thier roster will look much different and when Ryan Moore leaves, we know the end is imminent.

[3jacker]

They do care. That's why they buy it. They want to be seen with expensive stuff.

Like Rolex watches. There's no luxury there. It doesn't do anything that other watches can't (many better). But it sends out the message - "I have plenty of disposable income. I am a success."

PXG comes off that way a bit. But they are still a far better deal and more fun than a Rolex.

[GoGoErky]

We are saying they samething about price just in different ways.

[AzSuperHack76]

You must be limited to just a few courses. There are tons of rich guys playing PXG throughout the United States, especially here in the Phx/Scottsdale area. Same guys that are buying and gaming 3-5k Tour Scotty's, 2k Custom Bettinardi's and $500 dollar driver headcovers. Same guys pulling up to their clubs in Bentley's. Super rich guys are most definitely buying and playing PXG's.

[Sexygolfer2020]

The golfing world does not care about the flash golfers. If every manufacturer adopted pxg sales model the industry will collapse overnight. Pxg can charge whatever they want, but the golfing world look at results and PXG is all talk no action. Golfers want performance, we prefer GTR'S not Phantoms

[GoGoErky]

Tiger as Rory are pretty good yet their success didn’t make Nike competitive in the market. Their market share dust grow and Nike couldn’t break into the top 3-4 with two of the best players in their stable and one of the most popular lpga members.

While pxg isn’t miura a brand doesn’t need to have tour success to be successful and tour success doesn’t translate to success in sales and growing market share.

Taylormade staff has been more successful than Callaway staff on tour yet Callaway sales have been beating Taylormade for several years

[Sexygolfer2020]

When it seems Tiger probably would not play golf again, Nike exited the market and it was a good business decision Tiger woods moves the needle , look what it has done for Bridgestone golf balls. Pxg will not survive on the pga tour. I am not a fortune teller but the sales model is not working. Do not let the new fitting stores and the signature line, "nobody makes golf clubs like we do period" fool you. Pxg will never gain more than 4% of market share. They have to adapt to the industry if they are to survive.

[GoGoErky]

It’s not like pxg is investing big money on tour staff. They have people not under contract playing their stuff. Bryson has wedges in his bag, kokrak was playing their stuff and wearing logo’d hats with no deal.

you keep thinking that Bob is trying to draw market share. PXG is a niche brand and they are looking and marketing to the ones who don’t care how much a club cost and will pay for it because they either want the exclusivity of it or it works and the cost isn’t a concern to the buyer. He is also doing a great job with pxg heroes program that has sold a bunch of clubs and last year and year before had so much success there were periods of time where 6 weeks back orders were the norm.

4% market share is a mark several companies would live to have and is about what Mizuno maintains and nobody is taking about mizuno’s not being surviving on the pga tour. Nobody is talking about cobra not surviving on tour despite having only a few staffers and only one of them winning with any regularity in Bryson.

 

[Holy Moses]

The experience of paying more for subpar clubs is something you can’t put a price on

[Sexygolfer2020]

Mizuno has 4 major championships under their belt thanks to Brooks Koepka. As fas I know bryson plays cobra wedges, pxg was a failed try out. I am a bit tired of the back and forth, let us see what the future holds. If you believe pxg can survive on 4%, we will all see.

[GoGoErky]

Mizuno isn’t paying brooks.