Working at a Pro Shop.

[SOONERMAGIC]

Vol 1.

So I am an assistant at a golf course here in Orlando. I have been blown away at the "cost" of golf equipment. I always knew there was a large mark up on products, especially the new and in demand. I never knew what that markup was. I now only buy things on order from reps, and pay cost for everything I buy. This came up because I wanted a pair of Sundogs "hunter mahan signature" retail was $74.99 Cost was $30.99. Its now obvious to me how people can afford to sell things on ebay and make money even at cheaper than MSRP. I came from the Oil and Gas business, and I am slowly realizing that the middle man markup is not only in the energy business, but every business that wants to make money.

Side note. I love my job and the people I work with, it has been the great experience of my life working and learning under these people. (i left a six figure job to get into the golf industry) I hope there are more of you here that have or are having similar experiences in your neck of the woods.

PS dont be afraid to pay retail, you give guys like me a job. :)

[caseyc1]

good for you, at least you have a job, lost mine of 4 years in Feb and cant find a new one. I know only work with a buddy when he needs help maybe a 1 or 2 days a month

[SOONERMAGIC]

Where are you located? We are hiring, we just aquired 2 new courses here in Orlando and are in the process of staffing them.

[caseyc1]

Indiana. I wish i was in florida, i lived in orlando about 2 miles from the airport when i was 17. Moved down there with my cousin when he was finishing his last year of school at MMI

[highergr0und]

The number one markup items in most retail locations are accessories. Look at best buy.... a cell phone case cost about $2 for an employee when the average joe pays $20, or hdmi cables which cost about a dollar that they sell for $40. These are the high profit items that offset the low margin big items you buy. So you buy a big TV, they don't make that much on it. They clean house on the cables, surge protectors, other accessories, and the biggest one of all, the extended warranty.

So what about clubs? I bet the makeup is alright, just not as much.

Now while we all stew about paying twice the cost, tell us how much overhead you have in the shop. Stock on hand, demos, bills, rent, your salary, etc, etc, etc. Sure, guys can sell for cheaper online, but they have very low overhead if any at all.

[hbear]

Clubs are just as bad...balls have the least amount of markup if I remember correctly.

[SOONERMAGIC]

[quote name='highergr0und' date='15 May 2010 - 06:09 PM' timestamp='1273961357' post='2443595']
The number one markup items in most retail locations are accessories. Look at best buy.... a cell phone case cost about $2 for an employee when the average joe pays $20, or hdmi cables which cost about a dollar that they sell for $40. These are the high profit items that offset the low margin big items you buy. So you buy a big TV, they don't make that much on it. They clean house on the cables, surge protectors, other accessories, and the biggest one of all, the extended warranty.

So what about clubs? I bet the makeup is alright, just not as much.

Now while we all stew about paying twice the cost, tell us how much overhead you have in the shop. Stock on hand, demos, bills, rent, your salary, etc, etc, etc. Sure, guys can sell for cheaper online, but they have very low overhead if any at all.
[/quote]


Very true, our shop doesnt sell anything online other than tee times, but you are correct, the lack of overhead is what will offset the cost. Best Buy however sells those accessories you speak of at unreal rates in comparison to cost. I had a friend in high school work there, he always told me to let him know if i needed any of those small ticket items, so he could get them at cost ish.

[SOONERMAGIC]

As far as golf clubs go.. the mark up is not alot on iron sets i have noticed, but drivers.. whew.. let me tell you. The superdeep I will probably own in the next 2 weeks will cost me less than half of retail. Big vendors (edwin watts, golfsmith) are making a killing on drivers. We dont really carry much club stock on hand. Mostly fittings/orders.

[caseyc1]

dang half of retail for the superdeep, you lucky dog

[TCMP]

I work in the oil and gas industry and think I will continue to do so. Golf is my hobby, so I don't think I would have as much fun if I worked in it.

Glad you could give us some insight on the rediculous markup!

[dplasters]

Having worked selling TVs and Home Audio through high school and college I guess I assumed everyone else would have known about these things. 'Small' markup on TVs that are not on sale is almost always near or over 20%... now high end audio... lets not even talk about that.

Having received my degree in economics, I should point out that the companies can only charge those prices because people are willing and able to pay them. Its not like the prices are somehow 'unfair'.

[Dizz]

Golf club markup is really not that high. Sure items like those sunglasses or logo shirts or closeout shirts you can make money on. But the overhead you have with clubs, bags, balls...its really not that great. Also don't forget the shops pay freight as well.

[rafal]

Well I dont see how he's revealing any secrets here. Corporate conditioning at its best.

[XYB34A]

if you are good friends with the pro, then you get to pay cost for items as well. u dont have to work there. friendship with people in the world is one of the greatest things you can ever have.

[mac94]

Do you really expect them to be able to stay in business with a $35 markup? They have rent, salaries both reatail and corporate, inventory, taxes, dealer fees, adverstising, insurance and tons of other stuff they have to pay. How do you expect them to do that when they are charging 15% over cost? They are barely making it at 50%.

[punchdrunk]

At my unnamed store we make nothing on the new golf clubs that we sell. especially [size="5"]T[/size]he [size="5"]M[/size]ajor brand, but we have to carry them because if we don't then we will be criticized by customers. Margins are thinning every year and accessories are one of the only things we still make good margin on. (excluding balls) Please let us keep these small margins while we still have them.

[Spinach]

He must be talking about ordering stuff PUD not wholesale. The AVERAGE mark up in a golf shop counting hard goods and apparel works out to about 35% above wholesale.

Driver

MSRP-$480
MAP- $399.99
WHLSL- $275.00

Shirt

MSRP- $50
WHLSL- $25

[jumper16]

Thats just about spot on..Logoed apparel you can get away with selling at double what you paid; however, most drivers, you would be lucky to make $100 if you try to stay competitive with the prices at Golfsmith, Dick's, etc.

[SOONERMAGIC]

[quote name='rafal' date='15 May 2010 - 08:19 PM' timestamp='1273969160' post='2443755']
Well I dont see how he's revealing any secrets here. Corporate conditioning at its best.
[/quote]

Agreed.....


[quote name='Spinach' date='16 May 2010 - 04:01 AM' timestamp='1273996881' post='2444630']
He must be talking about ordering stuff PUD not wholesale. The AVERAGE mark up in a golf shop counting hard goods and apparel works out to about 35% above wholesale.

Driver

MSRP-$480
MAP- $399.99
WHLSL- $275.00

Shirt

MSRP- $50
WHLSL- $25
[/quote]


Yes I am speaking of ordering PUD on hard goods, shirts ect just wholesale. Your price comparison is spot on.

[Socrates]

Being in the business too, you also have add theft to the cost of doing business. Someone swipes a highend driver or some clothing goes "missing" those margins start to get pretty slim in a hurry. There is more to it than just the raw margin numbers so don't begrudge you local pro or shop for wanting to get full retail for brand new products.

[elrey23]

[quote name='justaman5' date='15 May 2010 - 08:24 PM' timestamp='1273973091' post='2443878']
if you are good friends with the pro, then you get to pay cost for items as well. u dont have to work there. [b]friendship with people in the world[/b] is one of the greatest things you can ever have.
[/quote]

As opposed to friendship with people out of this world? Sorry, it just read funny to me and I couldn't resist. You're absolutely right though. I'm good friends with a pro and get things at his cost which is a nice deal to have.

[LBlack14]

Just got this deal last week.

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=320526130417&ssPageName=STRK:MEWNX:IT

[9ccat9]

MSRP is crazy....Wholesale is better but not great....PUD is where it is at, 40 percent off wholesale is the only way to go! Make friends with people in the Biz!

[dub1308]

that is nuts. i knew there was a mark up but did not realize it was that much.