Tuesday, June 12, 2007

Free Clubs

I have been getting a lot of questions from people about why we don't give away "Free Clubs" to help promote our company and brand.

We ordered a few "free clubs" from some other golf companies. We paid no less than $20 for each free club. Based on the clubs themselves we estimate each club costs about $5-6.75 after assembly costs. This is based on the materials, design quality, and the shaft and grip.

If my basic math correct, I will assume the following:
Cost of club: $6.75
Cost of Box: $1.50 (this assumes they use good boxes)
Average cost of shipping $7.50 (we assume they have the same rates as us if not better) this is from MA to CA.

I have to be honest. I can't compete with this model. At $20-$25 we would go out of business on free wedges. Each GRIP wedge would sell for a substantial loss. At $49.95 our CNC milled Wedge is a tremendous value. At 3 for $99 they are an amazing value. When they go on sale they are unbeatable.

The moral of the story is:

  1. Nobody is giving away clubs - the $20-$25 in shipping and handling more than covers the cost of the product, shipping, and handling.

  2. giving away your product away for less than it's cost is not a strong business model.

  3. I am confident that those who offer "free clubs" make money after shipping and handling.

I am going to belly up. From now until July 1, I will offer GRIP CNC Milled Wedges for $30 each (+$7.95 shipping) if you use our coupon code 'freewedge'

For $5-$15 more than the "Free Wedge offers" we will send you the best sand, gap, or lob wedge you have ever used. I promise. If you don't like it, send it back and we'll give you your money back.

If someone offered you a "Free Car" or a "Free Haircut" would you raise an eyebrow? How about if the Haircut had fees of $12 or the car had an "aquisition charge" of $7,000?

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