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Callaway Clone Press Release
Golf Club Pricing Strategy-by Dana Upshaw PCS Class A Clubmaker

I've developed a "level-of-effort" pricing policy that allows me to vary the price of a club to accommodate the client's ability, goals, and budget while maintaining a reasonable level of profitablility. The basis of my policy is that the components "pass through" and profits are realized by selling an increasing level of "value-added service." My answer to the title question is "DANA Golf clubs sell for the catalog price of the components plus either $15.00, $25.00, or $35.00 per club. If the clubs require ferrules we charge an additional $3.00 per club." Within that pricing structure we perform the following services.

Plan A - catalog price plus $15.00 per club: We determine the length, flex, grip size and preliminary lie angle (flat, standard, upright). This is our basic fit budget plan and is a quality cut and glue club. About 20% of our clients - usually beginners - select this plan.

Plan B - catalog price plus $25.00 per club: This plan includes all the aspects of Plan A plus swingweight matching, grip weight matching, and shaft pre-assembly flex testing by frequency meter. We make every effort to match the shaft CPMs, but if our inventory level won't allow this, the most flexible shafts go in the longer clubs and the stiffest go in the shortest clubs. A deflection board can also be used for the flex test. About 60% of our clients select this plan.

Plan C - catalog price plus $35.00 per club: This is our pro-line service where we do everything we can possibly do to match the clubs to each other and the client's requirements. In addition to all the aspects of Plans A and B, we spend as much time as reasonably necessary interviewing the client and evaluating their swing using the Golftek Pro-V swing analyzer and Distance Caddy radar gun. (If in doubt about their ability or answers, we take the client and test clubs to a local driving range for a hitting evaluation.) All components are gram weight checked and matched. Each shaft is critically examined for weight and balance point and tested for flex characteristics and best orientation in the frequency meter prior to trimming. After assembly each club's loft is checked against the design specification and adjusted if necessary. We also dynamic lie adjust every club to the customer's swing.

In all cases, we unconditionally guarantee the clubs for material failure and workmanship, but NOT for playability or damage due to fair wear and tear or abuse. That said, in more than four years of service we've NEVER had a client say they didn't play better than before buying our clubs. Most RAVE about the improvement in their game!

This pricing policy is meant for set sales only. Obviously it wouldn't be very profitable if you made a single club for $15.00 over the catalog price. I price single clubs at the catalog price of the components plus $25.00. An additional $3.00 is charged for clubs requiring ferrules.

The ability to tailor your pricing will vary with your skill level and the equipment you use in assembly. Obviously, It wouldn't be very practical to charge for lie/loft adjustment if you don't have a lie/loft machine! I offer my pricing policy as an example of how you can reach a wider range of customers (skill and budget) by matching your level-of-effort to their "level-of-need" and pricing accordingly. After all, every golfer doesn't need a Plan C club. For those clients who cringe at paying $45.00 - $55.00 for a component club, I remind them that the club is my second product. My primary product is my service. I am here to do the very best job I can to help improve their game. If they have a problem with a club, they can come back to me and get immediate service. They don't have to wait 2-3 weeks for service from a faceless, no-name employee of an international conglomerate.

Callaway Clone Press Release-I called and asked Callaway Golf for an update on their fight against illegal knock-offs of their products and they sent this press release with photos. All of the major component companies design their own clubheads and the major OEM's have made it clear they will prosecute both the copiers as well as "anyone acting in participation with them", which could include custom clubmakers. If you would like to comment or write an article regarding this I will post it on the Guest Column page.
Contact: Krista Mallory
(619) 931-1771
CARLSBAD, CALIFORNIA, January 25, 1996 -- In preparation for the 1996 PGA Merchandise Show in Orlando, Florida, Callaway Golf Company (NYSE:ELY) today announced that in the past year it has obtained court-ordered Injunctions against ten different "knock-offs" of its best-selling Big Bertha8 Metal Woods, Irons, and Putters and The Tuttle8 Putters. The metal woods which have been enjoined include clubs sold under the names Mercury, Saturn, Slammer, and Warrior. The irons which have been enjoined include Canterbury Big Bursar, Rident Big Cavity, Big Brother, and Warrior. The putters include Warrior and The Toad. In each case, the Injunction applies to the defendant sued by Callaway Golf as well as to anyone acting in participation with them.
The Injunctions were the result of twelve separate legal actions initiated by Callaway Golf against knock-offs and counterfeits in 1995. The actions resulted in over $5 million in judgments and settlements being awarded to the company.
Callaway Golf has traditionally been very active in prosecuting alleged copiers before and during major trade shows. The company plans to maintain this approach during the PGA Merchandise Show this week, and will have attorneys in attendance. "We intend to make our presence felt at the PGA Show by those who try to compete illegally by stealing the property of others," said Steven McCracken, Vice President and General Counsel of Callaway Golf.

Clubmaker Online

Welcome to the first edition of Clubmaker Online! Our goal is to be the online resource for clubmakers around the world and provide you with a forum to share the craft of custom clubmaking with your peers.

I am a member of the Professional Clubmakers' Society and enjoy making and repairing clubs as a hobby and I have been searching for ways to combine my love of golf and clubmaking and my advertising/computer background into a full time career.

The World Wide Web provides an excellent vehicle for exchanging information with people of similar interests and our Online magazine will not be successful without your input and I encourage you to submit articles for publication.

I plan on working very closely with the Professional Clubmakers' Society in the new venture. The PCS publishes a bi-monthly magazine called the Professional Clubmakers' Society Journal that is filled with excellent technical articles on clubmaking skills, new products, industry news, and much more and they are planning on sharing their expertise on their own pages on Clubmaker Online.

The Professional Clubmakers' Society offers a Class A certification that sets clubmakers apart from the casual hobbiest. The test covers all aspects of clubmaking and shows your commitment to your craft. Class A members benefit from an 800# referral program and they are working on a program that encourages suppliers to offer products and discounts exclusively to Class A Clubmakers.

There is also a very succesful annual trade show in Louisville, Kentucky that is a gathering of clubmakers and suppliers that should not be missed. The weekend is filled with seminars that will take your clubmaking skills to the next level.

Diane Ogle is the Executive Director of the PCS and you'll find she is a friendly and helpful person that works very hard for the members of the PCS.

Contact the PCS at 1-800-548-6094 for information on joining-you won't be disappointed.

I'll be attending the PGA Merchandise show in Orlando January 26, 27 & 28 and I'll file a report every night of the show on hot new products of interest to clubmakers.

If you have any comments or suggestions on improving Clubmaker Online, please call me at (810) 220-4913 or email me at jhm@clubmaker-online.com My "snail mail" address is 5333 Bradford Circle, Brighton, MI 48116.

I look forward to hearing from you.

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