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.

- - - - -

Why don't more companies follow the K sig example?


53 replies to this topic

#31 BlkNGld

BlkNGld

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 2,689 posts
  •  
  • Member #: 7518
  • Joined: 11/08/2005
  • Location:Northern California
GolfWRX Likes : 365

Posted 10 October 2017 - 02:54 PM

View Postdoublepar93, on 08 October 2017 - 10:52 AM, said:

If Titleist would have released the Avx at the same price point of the K-sig, they would have sold like crazy. Same with the Q star tour. I know many people who look for a great deal on a urethane ball. Why won't companies listen?

Let's assume Titleist did that.   Now ask yourself which model's sales would be most negatively affected and you'll have the answer to your question.


Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


1

#32 TravAz

TravAz

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 619 posts
  •  
  • Member #: 52825
  • Joined: 04/02/2008
GolfWRX Likes : 178

Posted 11 October 2017 - 01:44 AM

I dont give a %@ about marketing budgets, r&D costs, etc. I have not found a ball that spins anywhere close to the ksig around the greens for me. I have settled on the chromesoft because I like the yellow/black truevis, but hitting a nippy little pitch shot and watching it run out to the back if the green for 2x the price of a ksig pisses me off. Same with prov, tp5, etc etc for me.

Maybe i need new wedges 😂
Current Bag:
Cobra F7+,  Baffler
Vapor Fly Pro irons
TM EF 50,54 PM Grind 58

2

#33 Sean2

Sean2

    #TheWRX (Callaway Trip)

  • ClubWRX Charter Members
  • 25,913 posts
  •  
  • Member #: 29539
  • Joined: 05/23/2007
  • Location:South of Boston
  • Ebay ID:None
GolfWRX Likes : 12585

Posted 11 October 2017 - 05:11 AM

View PostSnell Golf, on 10 October 2017 - 12:17 PM, said:

View PostSean2, on 08 October 2017 - 07:09 PM, said:

A few years ago I read that a former employee of Titleist said the cost to Titleist to produce a dozen ProV's was $4.00. He further said that the packaging of the golf balls cost more than the golf ball production.

I don't know how true that is.
I can tell you this is no where near the truth... not even close....

I had my doubts. I poked around on the Internet but could find no data as to the actual cost to manufacturer a Pro V.
Callaway GBB Epic 11º / Mitsubishi Rayon Diamana M+ 40 R
Callaway GBB Epic 16º / 20º / 24º Mitsubishi Rayon Diamana M+ 50 S

Callaway CF16 / 6--AW / UST Recoil ES 460 F4
Callaway 54/10 MD Forged / UST Recoil ES 460 F4
Callaway 58/10 MD PM / UST Recoil ES 460 F

Callaway 62/10 MD PM / UST Recoil ES 460 F
Callaway Odyssey O Works Tank #7

3

#34 hybrid25

hybrid25

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 573 posts
  •  
  • Member #: 434860
  • Joined: 08/01/2016
  • Location:michigan
GolfWRX Likes : 214

Posted 11 October 2017 - 05:28 AM

View Posttdk8180, on 08 October 2017 - 06:55 PM, said:

Vice Balls...the Vice Pro Plus doesnt go anywhere for me.  Major distance problem.
I have found the same thing using the Srixon QST. I can't believe the lack of distance on some of my drives with this ball. I don't see that with the Titleist Pro V1 or the Bridgestone b330 RX.

4

#35 ctay61983

ctay61983

    Member

  • ClubWRX Charter Members
  • 95 posts
  •  
  • Member #: 436894
  • Joined: 08/16/2016
  • Location:Oklahoma
  • Handicap:6.5
GolfWRX Likes : 11

Posted 11 October 2017 - 11:07 AM

View PostJc0, on 08 October 2017 - 02:50 PM, said:

View Postctay61983, on 08 October 2017 - 01:54 PM, said:

K-sig model isn’t sustainable. At least it hasn’t proven to be yet. The big boys would be foolish to conform at this point.

The K-sig model is only sustainable for costco. I doubt they make any real profit on these. Costco makes their profits on the yearly fees. Everything else is low margin or at cost.

I agree with what you're saying for the overall Costco model but may not be for the golf ball market itself. Which would explain the shortage of the current K-sigs. It's widely assumed the next ball will be a different design as Costco will have to find another "over-run" or excess supply of quality cores.

All that is assuming they maintain the quality and price of the original K-Sig even if it is a different design internally.


5

#36 Socrates

Socrates

    How can it be so *&#% hard to make a shoulder turn?

  • ClubWRX Charter Members
  • 7,406 posts
  •  
  • Member #: 60534
  • Joined: 07/15/2008
  • Location:Winnipeg
GolfWRX Likes : 2594

Posted 11 October 2017 - 11:31 AM

View Postctay61983, on 11 October 2017 - 11:07 AM, said:

View PostJc0, on 08 October 2017 - 02:50 PM, said:

View Postctay61983, on 08 October 2017 - 01:54 PM, said:

K-sig model isn’t sustainable. At least it hasn’t proven to be yet. The big boys would be foolish to conform at this point.

The K-sig model is only sustainable for costco. I doubt they make any real profit on these. Costco makes their profits on the yearly fees. Everything else is low margin or at cost.

I agree with what you're saying for the overall Costco model but may not be for the golf ball market itself. Which would explain the shortage of the current K-sigs. It's widely assumed the next ball will be a different design as Costco will have to find another "over-run" or excess supply of quality cores.

All that is assuming they maintain the quality and price of the original K-Sig even if it is a different design internally.
The fact that there are none available tells me that Costco can't find a supplier with enough balls (figuratively and literally) to supply them with the next K-Sig ball or at least at a quantity and price they are willing to go with.
Ping G400 9 TFC 419 Stiff at 45" Ping G30 10.5 Ping TFC 419 Reg or Stiff Jazz Bear Cat 3 wd Aerotech Stiff Ping i20 3 Hyb 707H Stiff X2 Hot 5-PW Recoil Reg - D2 Vokey SM2 52 cc Ping ES 56 and ES 60 Scotty X7M Dual 38"

6

#37 Tcann32

Tcann32

    Major Winner

  • ClubWRX Charter Members
  • 3,138 posts
  •  
  • Member #: 343581
  • Joined: 10/07/2014
  • Location:Minnesota
  • Handicap:5
  • Ebay ID:tcannon32
GolfWRX Likes : 1923

Posted 11 October 2017 - 11:34 AM

Costco is bigger than Titleist, who are the main culprit of the over priced ball market, and they can afford to sell golf balls at whatever price they want.

Titleist COULD sell their balls for much cheaper, and not risk losing any money, but they'd lose profit, and they can't afford that, at this point.

The base point of this: Almost any product you buy COULD be sold at a cheaper price, but if a manufacturer doesn't have to lower their price, and Titleist doesn't, then they won't. Other ball makers have to sell at lesser cost to get consumers to purchase something other than the main stay name brand of golf balls. Costco doesn't need to make any money on golf balls, so they just make a low margin on a temporary high volume of product, and keep moving forward.

Costco's business model doesn't even involve carrying a certain product for a long period of time. Once the manufacturer's surplus of whatever they're selling is gone, then they move on. Even though we're comparing golf balls to golf balls, it's still not apples to apples. We are comparing a retailer to a manufacturer.
What's actually in the bag...
Callaway Epic SZ-9.0-Aldila X-Torsion Green Mamba-70TX
Callaway Epic SZ 15* - PX Handcrafted Yellow 75 6.5
Callaway Apex UT 21* - C- taper S+
Miura LH LTD Black Blades: 3-p w/ DG TI X7's.
Cleveland RTX 3: 50-54 w. C-Taper S+
Scratch 1018: 58 w/ C-Taper S+
Piretti Potenza / Odyssey MX #7

Others gamed on occasion:
Callaway BBA (2014)
Callaway 13 X Forged w/ AMT X100's (hard stepped once)
Scratch Golf 51,55,58,59
Wilson Staff Kirk Currie Milled

7

#38 BForrester

BForrester

    Tour Winner

  • Advanced Members
  • PipPipPipPipPip
  • 777 posts
  •  
  • Member #: 418128
  • Joined: 03/29/2016
  • Location:Carmel, IN
  • Handicap:11
GolfWRX Likes : 325

Posted 11 October 2017 - 12:20 PM

View Postelwhippy, on 08 October 2017 - 12:27 PM, said:

The K-sig will appeal to a certain market. The V1 is a premium product. The majority of V1 users are OK with the price point. I know many players who refuse to even try Srixon or Callaway because they are absolutely convinced the V1 is always the best ball and must be magically different to other balls. They would actually mock someone using a K-sig.

It sounds like you know "many players" that are tools.
Taylormade M1 9.75o Aldila Rogue Black 70S
Taylormade RBZ 3w 15o
Taylormade Rescue Dual 19o R-Flex
Mizuno JPX-850 Forged 4-GW XP115 S300
Mizuno S5 (54, 58)
Odyssey Tank Cruiser #1

8

#39 Nessism

Nessism

    To measure is to know...

  • Advanced Members
  • PipPipPipPipPipPipPipPip
  • 16,137 posts
  •  
  • Member #: 131490
  • Joined: 06/23/2011
  • Location:Torrance, CA
  • Handicap:9
GolfWRX Likes : 6758

Posted 11 October 2017 - 12:30 PM

This thread is covering a lot of the same old discussion points as the other Ksig thread but I've got two questions for the haters:

1) If the Ksig is an "overrun," then what exact ball is it an overrun of?  It's not a quattro per the photo below.

2) If the $15/dozen is not doable then how come you can get Maxfli U6's for that price when they run a sale?


ksig vs quattro.JPG

Edited by Nessism, 11 October 2017 - 12:34 PM.

Ping G30 driver w/Adila Rogue Silver 60S
TEE XCG6 3 wood & E8 hybrids
Mizuno Hot Metal irons w/Recoil 95's
Glide 50/55/60 wedges w/Recoil 110's
Ping Anser putter - the "real deal!"

9

#40 Socrates

Socrates

    How can it be so *&#% hard to make a shoulder turn?

  • ClubWRX Charter Members
  • 7,406 posts
  •  
  • Member #: 60534
  • Joined: 07/15/2008
  • Location:Winnipeg
GolfWRX Likes : 2594

Posted 11 October 2017 - 12:33 PM

For many, they don't care what ball they play and really, they don't need to care.  For many though, they want the same ball with consistent results.  Not only from round to round, but year to year.

Ping G400 9 TFC 419 Stiff at 45" Ping G30 10.5 Ping TFC 419 Reg or Stiff Jazz Bear Cat 3 wd Aerotech Stiff Ping i20 3 Hyb 707H Stiff X2 Hot 5-PW Recoil Reg - D2 Vokey SM2 52 cc Ping ES 56 and ES 60 Scotty X7M Dual 38"

Remove This Advertisement Viewing As Guest

    GolfWRX Forums

    Advertisement


10

#41 Bad9

Bad9

    Major Winner

  • Advanced Members
  • PipPipPipPipPipPip
  • 3,268 posts
  •  
  • Member #: 94897
  • Joined: 09/21/2009
  • Location:Canada
  • Handicap:9.2
GolfWRX Likes : 1340

Posted 11 October 2017 - 01:31 PM

View PostSocrates, on 11 October 2017 - 12:33 PM, said:

For many, they don't care what ball they play and really, they don't need to care.  For many though, they want the same ball with consistent results.  Not only from round to round, but year to year.

+1 This is why I have 8 dozen Duo's at home. When I decided it was a good ball for my game I buy a couple dozen when they go on sale at Golftown. I figure I have a 3-4yr stock on hand.

11

#42 North Butte

North Butte

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 5,303 posts
  •  
  • Member #: 424472
  • Joined: 05/09/2016
  • Handicap:9.9
GolfWRX Likes : 3287

Posted 11 October 2017 - 01:36 PM

View PostNessism, on 11 October 2017 - 12:30 PM, said:

This thread is covering a lot of the same old discussion points as the other Ksig thread but I've got two questions for the haters:

1) If the Ksig is an "overrun," then what exact ball is it an overrun of?  It's not a quattro per the photo below.

2) If the $15/dozen is not doable then how come you can get Maxfli U6's for that price when they run a sale?


Attachment ksig vs quattro.JPG

All that "overrun" stuff was just spin. The balls were available, people liked them. Now they're not available. The rest is just speculation and spin.
A sensible man will realize that the eyes may be confused in two ways---by a change from light to darkness or from darkness to light; and he will recognize the same thing happens to the soul.

--Plato

12

#43 Bill Broderick

Bill Broderick

    Newbie

  • Members
  • Pip
  • 20 posts
  •  
  • Member #: 482578
  • Joined: 09/23/2017
  • Location:Long Island
GolfWRX Likes : 8

Posted 11 October 2017 - 01:47 PM

If Titleist thought that they could sell a lower priced ball that would be profitable without cannibalizing other parts of their line, they would do so.  But, putting out a high quality, low priced ball would have a huge negative impact on the sales of their high quality, high priced balls.  A good chunk of the value of the Titleist brand is that they are a "premium ball".  Premium balls need to command a premium price or they stop being perceived as premium balls.  As soon as they start charging lower prices, the brand would lose value.

Look at it this way.  Could Mercedes Benz make and sell a car for $25,000 at a profit?  Most likely, they could.  But, doing so would make it much harder for them to get $35,000 for a C-Class much less $125,000 for an AMG GT Roadster,

13

#44 Shilgy

Shilgy

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 7,857 posts
  •  
  • Member #: 235237
  • Joined: 03/07/2013
  • Location:Phoenix
  • Handicap:1.7
GolfWRX Likes : 4732

Posted 11 October 2017 - 02:05 PM

View PostNessism, on 11 October 2017 - 12:30 PM, said:

This thread is covering a lot of the same old discussion points as the other Ksig thread but I've got two questions for the haters:

1) If the Ksig is an "overrun," then what exact ball is it an overrun of?  It's not a quattro per the photo below.

2) If the $15/dozen is not doable then how come you can get Maxfli U6's for that price when they run a sale?


Attachment ksig vs quattro.JPG
1)  Does it matter? If not an overrun than where is their stock?  I admit I am not a Costco buyer but I do believe they are a smartly run business.  If they were making profit on the Ksig and it was not an overrun then why discontinue it?

2) The standard price is $29.95 a dozen. Sometimes a brand will lower the price to get folks to try them-but I am guessing you know all of this.  I can get these brand new for $389.  Does that mean if Nike would have sold them at that price initially they would still be selling clubs?
New Nike Vapor Pro Forged Blade Irons 3-PW RH True Temper AMT Stiff Flex, Black
TM M1 8.5*  Tensei Pro White 50TX
TM M1 3w 14*  Kuro Kage 70X
Srixon U65 18° Atmos Red 7s
Adams A12 UST Silver S 21°
Srixon Z765 5-PW Nippon Pro Modus3 125S
Cleveland  RTX CB 50* 54* 58* Nippon 125 wedge
Toulon Garage Rochester

To paraphrase Dr Seuss: Don't cry because the round of golf is over-smile because it happened .  :)

14

#45 Nessism

Nessism

    To measure is to know...

  • Advanced Members
  • PipPipPipPipPipPipPipPip
  • 16,137 posts
  •  
  • Member #: 131490
  • Joined: 06/23/2011
  • Location:Torrance, CA
  • Handicap:9
GolfWRX Likes : 6758

Posted 11 October 2017 - 05:49 PM

View PostShilgy, on 11 October 2017 - 02:05 PM, said:

1) If not an overrun than where is their stock?  I admit I am not a Costco buyer but I do believe they are a smartly run business.  If they were making profit on the Ksig and it was not an overrun then why discontinue it?

You are one of the guys that said Ksig's were "overruns," but you have not offered up any evidence or even a suggestion of what ball they supposedly are.

As to why Costco discontinued the ball, I don't think they did.  I believe they would be in the stores TODAY if Nassau would resume production.

Edited by Nessism, 11 October 2017 - 05:49 PM.

Ping G30 driver w/Adila Rogue Silver 60S
TEE XCG6 3 wood & E8 hybrids
Mizuno Hot Metal irons w/Recoil 95's
Glide 50/55/60 wedges w/Recoil 110's
Ping Anser putter - the "real deal!"

15

#46 new2g0lf

new2g0lf

    Major Winner

  • ClubWRX Charter Members
  • 1,628 posts
  •  
  • Member #: 114437
  • Joined: 09/06/2010
GolfWRX Likes : 968

Posted 11 October 2017 - 06:22 PM

Consumer mindset is conditioned to believe that price is directly related to quality / performance.  While there are a number of bargain shoppers out there, many consumer studies have demonstrated that given the choice between 2 products that are relatively unknown by the consumer many will choose the more expensive product (so long as it isn't prohibitively more expensive) because they perceive it will be "better".  

Premium golf balls sell at the $40 - $50 price range and many golfers are willing to pay that price.  All the manufacturers play nice and keep their premium golf ball prices close to each other (except for specials) so there's little motivation for any of them to break that practice in hope of selling more golf balls at a lower per unit margin.

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  They were likely making minimal margins on the golf balls in hopes of increasing their member base and sales of other products.  Had this community and other golf sites not created so much hype over the KSig they would have likely been a flop and would still be sitting on Costco shelves.  It was a great example of a viral marketing campaign that worked to perfection.  

Vice, Cut, Snell and others are offering quality golf balls at a cheaper price but they lack brand awareness, shelf space and overall premium golf ball market appeal to have a significant influence on the major premium golf ball manufacturers.  Plus a large portion of consumers will dismiss them based on the idea that if they are cheaper they aren't as good.

Edited by new2g0lf, 11 October 2017 - 06:23 PM.


16

#47 Nessism

Nessism

    To measure is to know...

  • Advanced Members
  • PipPipPipPipPipPipPipPip
  • 16,137 posts
  •  
  • Member #: 131490
  • Joined: 06/23/2011
  • Location:Torrance, CA
  • Handicap:9
GolfWRX Likes : 6758

Posted 11 October 2017 - 06:46 PM

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  

I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
Ping G30 driver w/Adila Rogue Silver 60S
TEE XCG6 3 wood & E8 hybrids
Mizuno Hot Metal irons w/Recoil 95's
Glide 50/55/60 wedges w/Recoil 110's
Ping Anser putter - the "real deal!"

17

#48 _Stormin_

_Stormin_

    Advanced

  • Advanced Members
  • PipPipPipPip
  • 260 posts
  •  
  • Member #: 382628
  • Joined: 06/25/2015
  • Location:Hampton Roads
  • Handicap:19.2
GolfWRX Likes : 141

Posted 12 October 2017 - 03:51 AM

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  
I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
Everything but "to gain market share" makes sense. You don't gain market share by having a product on your shelf that you can't restock. You bring in that product to make money, and yeah, to offer more to the people that choose to patronize your business. Market share is nothing in a consumable, if the customer can't come back and buy your product again.

18

#49 TsarBomba

TsarBomba

    Advanced

  • Advanced Members
  • PipPipPipPip
  • 481 posts
  •  
  • Member #: 451602
  • Joined: 01/13/2017
  • Location:Midwest
  • Handicap:9
GolfWRX Likes : 260

Posted 12 October 2017 - 11:35 AM

View Post_Stormin_, on 12 October 2017 - 03:51 AM, said:

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  
I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
Everything but "to gain market share" makes sense. You don't gain market share by having a product on your shelf that you can't restock. You bring in that product to make money, and yeah, to offer more to the people that choose to patronize your business. Market share is nothing in a consumable, if the customer can't come back and buy your product again.

If evaluated as typical...but this scenario was interesting with the crazy demand. I'm guessing Costco gained quite a few new customers who will return now for other stuff. If you read back through the Ksig thread, there was a huge misperception of Costco by peeps who had never set foot in one...they just assumed it was basically Big-Lots or Shopco

19

#50 Shilgy

Shilgy

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 7,857 posts
  •  
  • Member #: 235237
  • Joined: 03/07/2013
  • Location:Phoenix
  • Handicap:1.7
GolfWRX Likes : 4732

Posted 12 October 2017 - 01:50 PM

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  

I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
No more speculation than your post saying Nassau just needed to resume production.  The fact that no one else, not even the direct to consumer model Snell or Vice, regularly sells balls at $15 per dozen at the very least implies it is not a sustainable model.  If Nassau was able to sell them to Costco at what was likely the cost then they would continue to do so. If Costco could continue selling them at that price from that cost then they would continue. So somewhere along the chain a link broke. Or more likely they were overrruns of something.
  Overruns is not a negative terminology. Costco was able to use this ball, no matter where they got it, to either make a few bucks of the ball or increase traffic in their stores. Both are a win for the Costco brand.

TM M1 8.5*  Tensei Pro White 50TX
TM M1 3w 14*  Kuro Kage 70X
Srixon U65 18° Atmos Red 7s
Adams A12 UST Silver S 21°
Srixon Z765 5-PW Nippon Pro Modus3 125S
Cleveland  RTX CB 50* 54* 58* Nippon 125 wedge
Toulon Garage Rochester

To paraphrase Dr Seuss: Don't cry because the round of golf is over-smile because it happened .  :)

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

#51 Nessism

Nessism

    To measure is to know...

  • Advanced Members
  • PipPipPipPipPipPipPipPip
  • 16,137 posts
  •  
  • Member #: 131490
  • Joined: 06/23/2011
  • Location:Torrance, CA
  • Handicap:9
GolfWRX Likes : 6758

Posted 12 October 2017 - 03:04 PM

View PostShilgy, on 12 October 2017 - 01:50 PM, said:

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  

I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
No more speculation than your post saying Nassau just needed to resume production.  The fact that no one else, not even the direct to consumer model Snell or Vice, regularly sells balls at $15 per dozen at the very least implies it is not a sustainable model.  If Nassau was able to sell them to Costco at what was likely the cost then they would continue to do so. If Costco could continue selling them at that price from that cost then they would continue. So somewhere along the chain a link broke. Or more likely they were overrruns of something.
  Overruns is not a negative terminology. Costco was able to use this ball, no matter where they got it, to either make a few bucks of the ball or increase traffic in their stores. Both are a win for the Costco brand.

We'll just have to wait and see what happens with Costco and golf balls.  I'll be glad to serve you a crow sandwich if Ksig2 hits the stores at the same price or very close to the original.  U6's can be had for $20/dozen quite regularly so I'm not convinced it can't be done.
Ping G30 driver w/Adila Rogue Silver 60S
TEE XCG6 3 wood & E8 hybrids
Mizuno Hot Metal irons w/Recoil 95's
Glide 50/55/60 wedges w/Recoil 110's
Ping Anser putter - the "real deal!"

21

#52 new2g0lf

new2g0lf

    Major Winner

  • ClubWRX Charter Members
  • 1,628 posts
  •  
  • Member #: 114437
  • Joined: 09/06/2010
GolfWRX Likes : 968

Posted 13 October 2017 - 09:12 AM

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  

I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.

Admittedly it's a bit of speculation and some industry insider opinion.  No golf ball company sells new premium balls for $15 per dozen, there isn't enough profit margin for the distribution chain to make it enticing.

You mentioned the MaxFli U6 in a later post but failed to acknowledge these are being heavily discounted to dump stock because they have been replaced by the UFli which sell for $35 per dozen.  

Will Costco sell another $15 per dozen premium ball, it's possible but I doubt it will perform as well as the original KSig and if it does then again it will not be sustainable.  Cut, Vice, MG are all selling premium golf balls that are mass manufactured overseas but none can get close to the $15 per dozen price point.  Costco could certainly negotiate a lower price with a large quantity order but I'm still not sure that gets them down to $15 per dozen.

Edited by new2g0lf, 13 October 2017 - 09:13 AM.


22

#53 North Butte

North Butte

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 5,303 posts
  •  
  • Member #: 424472
  • Joined: 05/09/2016
  • Handicap:9.9
GolfWRX Likes : 3287

Posted 13 October 2017 - 09:18 AM

I think lots of companies do "follow the K-Sig example". There's Cut and Vice and MG and other outfits which order up a bunch of white-label balls from Korea or Taiwan and sell them direct for cheap. And there are always ample deals on discontinued, overstock  or orphaned models from the major brand being cleared out for 20-30 cents on the dollar.

Those are *exactly*  what "the K-Sig example" represents. It's just that nobody else is equipped to do it for as cheaply as Costco while also having a built-in audience of members waiting to pounce on it. That's the Costco difference, nobody can compete with Costco when it comes to low margins, mass volume and minimal need for paid marketing or advertising.
A sensible man will realize that the eyes may be confused in two ways---by a change from light to darkness or from darkness to light; and he will recognize the same thing happens to the soul.

--Plato

23

#54 Shilgy

Shilgy

    Hall of Fame

  • Advanced Members
  • PipPipPipPipPipPipPip
  • 7,857 posts
  •  
  • Member #: 235237
  • Joined: 03/07/2013
  • Location:Phoenix
  • Handicap:1.7
GolfWRX Likes : 4732

Posted 13 October 2017 - 10:38 AM

View PostNessism, on 12 October 2017 - 03:04 PM, said:

View PostShilgy, on 12 October 2017 - 01:50 PM, said:

View PostNessism, on 11 October 2017 - 06:46 PM, said:

View Postnew2g0lf, on 11 October 2017 - 06:22 PM, said:

Costco was using the KSig as a loss leader to gain market share, present added value to their members and to attract new members.  

I liked your post until this part which is pure speculation.  If you are going to guess than just say as much.
No more speculation than your post saying Nassau just needed to resume production.  The fact that no one else, not even the direct to consumer model Snell or Vice, regularly sells balls at $15 per dozen at the very least implies it is not a sustainable model.  If Nassau was able to sell them to Costco at what was likely the cost then they would continue to do so. If Costco could continue selling them at that price from that cost then they would continue. So somewhere along the chain a link broke. Or more likely they were overrruns of something.
  Overruns is not a negative terminology. Costco was able to use this ball, no matter where they got it, to either make a few bucks of the ball or increase traffic in their stores. Both are a win for the Costco brand.

We'll just have to wait and see what happens with Costco and golf balls.  I'll be glad to serve you a crow sandwich if Ksig2 hits the stores at the same price or very close to the original.  U6's can be had for $20/dozen quite regularly so I'm not convinced it can't be done.
May I serve you one if the price is higher and/or the quality is not nearly the same? For that matter if they still cannot stock the #2 any better than they did #1?  The stock issue is not because they sold so many a manufacturer could not keep up. They ran out it would seem. And what would they run out of?
  The U6 can be had for $20 occasionally. That is 33% more than $15.  If you had a $30k budget for a car would you consider $40k close enough?
TM M1 8.5*  Tensei Pro White 50TX
TM M1 3w 14*  Kuro Kage 70X
Srixon U65 18° Atmos Red 7s
Adams A12 UST Silver S 21°
Srixon Z765 5-PW Nippon Pro Modus3 125S
Cleveland  RTX CB 50* 54* 58* Nippon 125 wedge
Toulon Garage Rochester

To paraphrase Dr Seuss: Don't cry because the round of golf is over-smile because it happened .  :)

24



0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

GolfWRX Sponsors