Jump to content

Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at GolfWRX such as viewing all the images, interacting with members, access to all forums and eligiblility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE GolfWRX account here.

- - - - -

Golf Ball Profit Margins


33 replies to this topic

#1 PlusFours

PlusFours

    Member

  • Advanced Members
  • PipPipPip
  • 95 posts
  •  
  • Member #: 49382
  • Joined: 02/20/2008
  • Location:Oceanside, CA
GolfWRX Likes : 9

Posted 31 March 2008 - 01:51 PM

I've been wondering for some time what the profit margins on golf balls are.  Since I have joined GolfWRX I've observed that there are a number of members with industry experience, and I'm hoping you will be able to answer my question.

Thanks!


Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


Wanna get rid of this ugly yellow box? And remove other annoying "stuff" in between posts? Create a FREE GolfWRX account here.

1

#2 slim16er

slim16er

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 731 posts
  •  
  • Member #: 49202
  • Joined: 02/18/2008
  • Location:NW Suburbs of Chicago
  • Ebay ID:slim16er
GolfWRX Likes : 29

Posted 31 March 2008 - 01:52 PM

I can tell you that it's almost nothing on the ProVs

2

#3 twgolf

twgolf

    Major Winner

  • Banned
  • PipPipPipPipPipPip
  • 2,151 posts
  •  
  • Member #: 25616
  • Joined: 02/16/2007
  • Location:Indiana
  • Ebay ID:twwgolf69
GolfWRX Likes : 70

Posted 31 March 2008 - 02:06 PM

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.
Titleist 910D3 9.5 w/Diamana D+ 72s
Titleist 910F 15 w/stock Kai'li 75s
Titleist 910H 19 w/stock Kai'li 80s
Titleist AP2 712 3-W DGS300
Vokey SM4 52-08 & 56-11
Bettinardi BC6 34" 343g

3

#4 Scratch2Plus

Scratch2Plus

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 1,816 posts
  •  
  • Member #: 41626
  • Joined: 10/31/2007
  • Location:Chicago
GolfWRX Likes : 410

Posted 31 March 2008 - 02:10 PM

just got the 08' TM TP Red LDP for $33/dozen + tax of course.
OTW... Titleist C16 Driver ~ GD AD Di Black 6s


M1 460 ~ Aldila Rogue Silver 60s
RomaRo Type R 3wd ~ Diamana B70s
RomaRo Type R Ute ~ GD UT 85s
716 TMB's ~ Modus ST Proto
Vokey Cold Forged smoked copper 54m-58m ~  Modus 115 wedge spec
Nike Rors Method 006 Proto


Never tell a grown man how to spend his money...

4

#5 Gxgolfer

Gxgolfer

    Site Founder & Co-Owner

  • Rules Official
  • 14,673 posts
  •  
  • Member #: 11
  • Joined: 03/16/2005
  • Location:SF Bay Area, CA
GolfWRX Likes : 360

Posted 31 March 2008 - 02:10 PM

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.

Before sending me a message for help, please look at the website support section:
Have a Ad/BST question, first look and post here:
http://www.golfwrx.c...t-ad-questions/
If you have a general help question, post here:
GolfWRX Website Help Desk


5

#6 PlusFours

PlusFours

    Member

  • Advanced Members
  • PipPipPip
  • 95 posts
  •  
  • Member #: 49382
  • Joined: 02/20/2008
  • Location:Oceanside, CA
GolfWRX Likes : 9

Posted 31 March 2008 - 03:00 PM

 twgolf, on Mar 31 2008, 12:06 PM, said:

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.

6

#7 PlusFours

PlusFours

    Member

  • Advanced Members
  • PipPipPip
  • 95 posts
  •  
  • Member #: 49382
  • Joined: 02/20/2008
  • Location:Oceanside, CA
GolfWRX Likes : 9

Posted 31 March 2008 - 03:02 PM

 Gxgolfer, on Mar 31 2008, 12:10 PM, said:

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.

So I hear.  I'd like to go check it out, but can't afford the entrance fee.

:cheesy:

7

#8 mantan

mantan

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 2,045 posts
  •  
  • Member #: 6970
  • Joined: 10/21/2005
  • Location:DFW
  • Handicap:11.5
GolfWRX Likes : 263

Posted 31 March 2008 - 03:30 PM

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!
WITB
PING Anser 10.5
PING G20 4-Wood
PING G25 23* Hybrid
PING G25 5-GW, LW
PING 54* i-Wedge
PING Pick Me Up

8

#9 themouth1

themouth1

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 1,207 posts
  •  
  • Member #: 8185
  • Joined: 11/27/2005
  • Location:Biloxi, MS
GolfWRX Likes : 80

Posted 31 March 2008 - 03:34 PM

 mantan, on Mar 31 2008, 10:30 AM, said:

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!

YEP...

9

#10 HarboursideTC

HarboursideTC

    Harbourside

  • Advanced Members
  • PipPipPipPipPipPip
  • 1,223 posts
  •  
  • Member #: 23318
  • Joined: 12/30/2006
  • Location:Traverse City, Michigan
  • Ebay ID:golfclubTC
GolfWRX Likes : 2

Posted 31 March 2008 - 03:36 PM

It is pretty safe to assume that the average pro shop is getting a $6-8 dozen profit on premium balls and $4-6 dozen on midrange balls.  In other words, not much left to raise a family on.


Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


Wanna get rid of this ugly yellow box? And remove other annoying "stuff" in between posts? Create a FREE GolfWRX account here.

10

#11 mr.beasley

mr.beasley

    Member

  • Advanced Members
  • PipPipPip
  • 162 posts
  •  
  • Member #: 39001
  • Joined: 09/08/2007
  • Location:Vancouver BC
GolfWRX Likes : 0

Posted 31 March 2008 - 04:11 PM

we're lucky if we get 6-8... our staff price on the pro v's(cost +5%) up until the canadian dollar made its move worked out to a dollar less than the consumer was paying, lol. some companies do have higher margins, ie srixon...

11

#12 bulldog8b

bulldog8b

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 802 posts
  •  
  • Member #: 49673
  • Joined: 02/23/2008
  • Location:Riverside, CA
GolfWRX Likes : 1

Posted 06 April 2008 - 11:10 PM

Wow, $35 or so a dozen?  I wonder what it costs Titleist to make 1 ProV1?  I seriously doubt it's anywhere near $3.  And I don't want to hear anything about R&D costs, they are golf balls, not cancer drugs!!  It's highway robbery I tells ya!!!

12

#13 BluesDrive

BluesDrive

    Advanced

  • Members
  • PipPipPipPip
  • 281 posts
  •  
  • Member #: 52419
  • Joined: 03/28/2008
  • Location:Woodland Hills, CA, USA
  • Ebay ID:subwaywall
GolfWRX Likes : 0

Posted 15 April 2008 - 06:11 AM

I can tell you that the resale value of a ProV1 or V1x is incredibly ridiculous.  I've decided to play golf at my local course a lot more and hunt for lost V1's when I shoot a ball in the rough.  I may just bring a fishing pole with a net or something of the sort attached to it and go fishing.

13

#14 Sean2

Sean2

    Wait...what?

  • ClubWRX Charter Members
  • 22,237 posts
  •  
  • Member #: 29539
  • Joined: 05/23/2007
  • Location:South of Boston
  • Ebay ID:None
GolfWRX Likes : 8658

Posted 15 April 2008 - 06:13 AM

I was told by a Titleist employee that the out-the-door cost for the ProV1 is $4 a dozen.
Callaway BB Alpha 815 10.5º
Callaway XR 15º
TaylorMade RBZ Stage 2 Tour 20º
TaylorMade RBZ Stage 2 Tour 23º
Callaway XR OS 5 - LW
Scotty Cameron Newport 2 D/B

14

#15 Shaitan

Shaitan

    Major Winner

  • Jr. Boomers
  • PipPipPipPipPipPip
  • 1,806 posts
  •  
  • Member #: 23877
  • Joined: 01/11/2007
  • Location:Brisbane, Australia
  • Ebay ID:1758jo
GolfWRX Likes : 3

Posted 15 April 2008 - 06:22 AM

yeah its pretty bad - let's just say i don't get payed very well if i sell a heap of balls lol


15

#16 JORDANF1

JORDANF1

    Advanced

  • Advanced Members
  • PipPipPipPip
  • 389 posts
  •  
  • Member #: 16446
  • Joined: 07/17/2006
  • Location:Sydney , Australia
GolfWRX Likes : 25

Posted 15 April 2008 - 06:24 AM

 Avatar, on Apr 15 2008, 09:13 PM, said:

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
Titleist 915  / 757 Speeder Shaft
Ping G25 15 Fairway / 757 Speeder Shaft
Ping G25 17deg Hybrid Accra Shaft
Hogan Fort Worth 15 Blades Modus 3 Tours 3-PW
Hogan Fort Worth 50, 54 & 58
Scotty Cameron Circle T Tour only  Button Back Newport 2

16

#17 Shaitan

Shaitan

    Major Winner

  • Jr. Boomers
  • PipPipPipPipPipPip
  • 1,806 posts
  •  
  • Member #: 23877
  • Joined: 01/11/2007
  • Location:Brisbane, Australia
  • Ebay ID:1758jo
GolfWRX Likes : 3

Posted 15 April 2008 - 03:22 PM

Nah, not in our golf shop mate - shoes and clothing have the biggest profit margin, and balls and mizuno stuff has the smallest. We are selling the ProVs at $73, and the cost isn't much less then that.

17

#18 BluesDrive

BluesDrive

    Advanced

  • Members
  • PipPipPipPip
  • 281 posts
  •  
  • Member #: 52419
  • Joined: 03/28/2008
  • Location:Woodland Hills, CA, USA
  • Ebay ID:subwaywall
GolfWRX Likes : 0

Posted 16 April 2008 - 04:00 AM

the profit margin for pro shops isn't that interesting for balls.  What I really wonder about is how much titleist makes.

18

#19 BEND OF THE RIVER GC

BEND OF THE RIVER GC

    Major Winner

  • Charter Members
  • PipPipPipPipPipPip
  • 4,681 posts
  •  
  • Member #: 2495
  • Joined: 07/13/2005
  • Location:Cincinnati, Ohio
  • Ebay ID:jmcdyd
GolfWRX Likes : 114

Posted 18 April 2008 - 01:27 PM

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.

19

#20 dansrixon

dansrixon

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 2,185 posts
  •  
  • Member #: 10162
  • Joined: 01/19/2006
GolfWRX Likes : 52

Posted 18 April 2008 - 01:56 PM

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?

Driver: 9.5 Srixon Z745 Miyazaki Kena Black
Fairway: Srixon F45 w/Kiyoshi Purple
Hybrid: Srixon Z45 w/ Miyazaki C.Kua 83
Irons: XXIO Forged w/DG X100 TI
RTX 2.0 CB 50, Tour Rack 55 &60
Putter: Cleveland TFI Smart Square

Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


Wanna get rid of this ugly yellow box? And remove other annoying "stuff" in between posts? Create a FREE GolfWRX account here.

20

#21 Eye-O-Matic

Eye-O-Matic

    Newbie

  • Members
  • Pip
  • 11 posts
  •  
  • Member #: 2805
  • Joined: 07/15/2005
  • Location:Illinois
GolfWRX Likes : 0

Posted 18 April 2008 - 02:04 PM

I totally agree.
Just like they say about gas and the small amount of profit, yet you have warehouse clubs and grocery chains now selling gas.  If there's not much profit, then why would they go out on a limb.

21

#22 themouth1

themouth1

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 1,207 posts
  •  
  • Member #: 8185
  • Joined: 11/27/2005
  • Location:Biloxi, MS
GolfWRX Likes : 80

Posted 18 April 2008 - 02:25 PM

Quote

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:

Edited by themouth1, 18 April 2008 - 02:26 PM.


22

#23 golfdad907

golfdad907

    Play fast, have fun

  • Advanced Members
  • PipPipPipPipPipPip
  • 2,731 posts
  •  
  • Member #: 24061
  • Joined: 01/15/2007
  • Location:DFW, TX
  • Ebay ID:golfdad_907
GolfWRX Likes : 395

Posted 18 April 2008 - 07:11 PM

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.
2015 GBB 10.5 - MRC B Series 60S  44.75"
RFX 3 & 5 Woods MRC BB 73
RFX 7 Wood Matrix Black Tie 7M3
XHot Pro Hybrids 23 Accra Shaft
Apex Pro 5-W KBS Tour V or Recoil 110s
Odyssey WhiteHot Pro #7  Flatso Ultra grip
X Forged C Grind 52*
PM Grind 58* KBS 610 Wedge
Chrome + and Chrome Soft Yellow

23

#24 j.a.

j.a.

    Major Winner

  • ClubWRX Charter Members
  • 1,419 posts
  •  
  • Member #: 256544
  • Joined: 06/16/2013
  • Location:QLD, Australia
GolfWRX Likes : 525

Posted 06 April 2014 - 12:21 AM

 Sean2, on 15 April 2008 - 06:13 AM, said:

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

That's why there are competitors that offer top of the range balls for up to 50% less than the ProVs.

24

#25 Fourmyle of Ceres

Fourmyle of Ceres

    Hall of Fame

  • Unregistered
  • PipPipPipPipPipPipPip
  • 7,769 posts
  •  
  • Member #: 58909
  • Joined: 06/25/2008
GolfWRX Likes : 1401

Posted 06 April 2014 - 06:22 AM

Golf balls are very profitable for the manufacturers.

For the retailers, not so much. Markups are pretty low.

Same as any other manufactured consumer item nowadays. No profit left in retail outside of high-end specialty items in a few specific categories.

Edited by Fourmyle of Ceres, 06 April 2014 - 06:22 AM.


25

#26 dlygrisse

dlygrisse

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 8,339 posts
  •  
  • Member #: 16702
  • Joined: 07/21/2006
  • Location:Kansas
GolfWRX Likes : 2207

Posted 06 April 2014 - 07:09 AM

 golfdad907, on 18 April 2008 - 07:11 PM, said:

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.

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.
Ping G
Callaway V-Series 3w, HW,
Ping G 4-PW
Ping Glide SS 50,54
Ping Glide ES 58*
Odyssey Pro #1
Ping Hoofer

"For when the One Great Scorer comes
To mark against your name,
He writes not that you won or lost
But how you played the Game." -Grantland Rice

26

#27 Hot Rod 71

Hot Rod 71

    Golf--Eat--Sleep--Repeat

  • ClubWRX Charter Members
  • 6,354 posts
  •  
  • Member #: 108037
  • Joined: 05/15/2010
  • Location:RVA / VBVA
  • Handicap:Low
  • Ebay ID:Rodstergolf
GolfWRX Likes : 3684

Posted 06 April 2014 - 07:27 AM

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.
Titleist 915 D3 10.5* - Diamana Blueboard 63
Titleist 910f 15* - Diamana D+ 80
Titleist 915hd 20.5* - Aldila Rip'd VS Proto 80
Callaway 2013 X-Forged 4-PW - KBS Tour V
Titleist SM5 50F, 54F, 58S - KBS Tour/Hi-Rev
Scotty Cameron SS Newport 2
Snell MTB

27

#28 ClayShooter

ClayShooter

    Member

  • Advanced Members
  • PipPipPip
  • 92 posts
  •  
  • Member #: 302735
  • Joined: 03/20/2014
  • Location:So Cal
  • Handicap:18
GolfWRX Likes : 5

Posted 06 April 2014 - 05:33 PM

 Hot Rod 71, on 06 April 2014 - 07:27 AM, said:

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.

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!

Edited by ClayShooter, 06 April 2014 - 05:34 PM.


28

#29 devey07

devey07

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 763 posts
  •  
  • Member #: 232393
  • Joined: 02/26/2013
  • Location:Park Ridge
  • Handicap:15
GolfWRX Likes : 137

Posted 06 April 2014 - 07:09 PM

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

29

#30 cristphoto

cristphoto

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 2,204 posts
  •  
  • Member #: 42981
  • Joined: 11/30/2007
GolfWRX Likes : 282

Posted 07 April 2014 - 09:32 AM

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


Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


Wanna get rid of this ugly yellow box? And remove other annoying "stuff" in between posts? Create a FREE GolfWRX account here.

30



0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

GolfWRX Sponsors