If the allegations from a couple weeks ago were true that Costco was planning on discontinuing the new Ksig ball, it appears they might be taking a mulligan. Or at the very least contemplating a provisional!

I wonder if the balls will remain $15/doz pricing? Like I said in the other thread, there's no real reason (on the surface) why Costco would just walk away from what appears to be a very profitable venture. It would shock me if they continue selling 2 doz for $29.99. I guess we'll see what shakes out over the next month or so.

"The golf balls will return." ~ Jeffrey Brotman, Costco co-founder and Chairman of the Board

http://m.stamfordadvocate.com/local/article/Costco-says-golf-balls-will-return-10883759.php

    PA-PLAYA

    That's awesome. I wonder what the guys that are paying HUGE $$$$ for these lately are going to think when they hear this?

        Orlimar1

        "Honey, cancel that vacation with the kids to Disney this summer. And clear out the spare bedroom, 'cause Daddy's gonna make some easy money here very shortly! By the way, how much available balance is left on the MasterCard?"

        Or something to that effect. Raising the price to $29.99/dozen might not stop the idiots from being idiots, but it will probably help keep more of them on the shelves, as demand will lessen and yet they'll still be a good bargain.

        Kinda hoping they do increase the price to be honest. I'll gladly pay $30/dozen if they're durable and good performers. Not a deal breaker for me, saving $10+ bucks per dozen over the comparable premiums. They could blow them out at $10/doz and that's only a great deal if you can get them. That's the issue - can't get 'em. Increase the price and watch these idiots' houses of cards fall real quickly.

          PA-PLAYA "The golf balls will return." ~ Jeffrey Brotman, Costco co-founder and Chairman of the Board

          That maybe, they have dedicated group to seek out deals for their warehouse.

          However, say Bye-Bye to the $29.99 / 24 box of the 4 piece premium golf ball ( AKA Kirkland Signature ). If we ever see that golf ball on the shelf, it'll not be for the same price.

          I can't see anyone selling the golf ball at near cost and the retailer adding 15% on top of the cost. All the other golf ball OEM will jump in the river should that happens.

              Eight dwarfs walking silently by a Sleeping Beauty ...

              Well, I guess I should have put mine on Ebay already, it may be too late now. No big deal if I keep them, I will use them eventually!

              Well, someone is lying, somewhere. I came across a fella a few weeks ago(I posted somewhere about this) that said he and his wife work for Costco. The wife had told him there were Kirkland golf balls in the storeroom ready for the shelves, but they were not the same stock number as the K-Sig balls.(she did not open to look at them) This was at the same time(day actually) when Costco ran out, and never restocked the K-Sig. I've been checking the site daily and the balls she mentioned have never hit the shelves! Something smells of bullshit. Everywhere.

              I don't give 3 shits about these balls myself, wouldn't buy them if they were $10/doz., nor should I with having several dozen other balls on hand. I do find the whole 'story' intriguing though.

              Release All the other golf ball OEM will jump in the river should that happens.

              No, they won't! And when they do not, the K-Sig will die a fast death. The OEMs will kill them off rapidly. I shouldn't have had to say it, nor should you have said it. We are both way smarter than that.🙂

              You think Titleist cannot undersell that price and still make millions off the ProV1? They can. They will. They'd have to.

                  I'm still waiting for the supposed revolution!

                  Lol

                    When gas went up to $4+ /gallon, it didn't stop people from buying full-size, gas-guzzling SUV's. If you can afford a $40000 to $50000 vehicle, you probably ain't worried about keeping it fueled up.

                    Same concept here. People who can afford to play premium balls and equipment - they're not switching to a different ball because of a lower price, especially if that ball doesn't have a long history, and double especially if that ball is seen as inferior to the named-brand it's being compared to.

                    There might be an initial period where sales of popular midline balls like the NXT and Chrome Supersoft might see some softening, but I still don't think it'll amount to much long-term.

                    Golfers are a funny lot. They tend to stick with what has served them well in the past, especially if they can afford it. And if they can afford to play a couple times per week, then they're probably not worried too much about the price difference in NXT's or Chrome Supersofts versus what will be seen as a wholesale knockoff ball.

                    The Ksigs will indeed have a niche market, but I don't suspect it will be a game changer for the bigger named-brand companies who've been around forever.

                      Par4QC
                      Yeah,
                      However, Costco does not have a group of "playing staff" and no bonus tee off price and no advertising budget except for internet review ( not sue if anyone got paid for that ).
                      In that along should be at least in the mid 8 figures.

                      No, Titleist will not be interested in under sold any brand. They can't. What they might do is to take other action like brain storm between their corporate attorneys to find ways to stall or to kill the competitor. But that's if and when this brand has become a real threat to their existence . By volume, the initial launch was just a ripple in the pond.

                        ode I'm still waiting for the supposed revolution!

                        Lol

                        The price revolution had already begun with or without the Costco brand.
                        There are more middle of the road priced golf balls out there than maybe 7-8 years ago with few to chose from.

                        OEM realized golfers don;t like to pay more than $35/doz for a regular played golf ball. A lot use a mid priced golf ball and switched to premium brand when in competition.

                        Costco brand was, not only less but selling at a low profit margin with the manufacturer's inventory virtually at the cost of production is stirring up the industry like never before. This will further instill in the golfers to seek "deals". Brand new Titleist logo overrun Pro V1 or V1x is available in the local golf shop at $2.99 each. Nor refurbished and not blemished, just not sleeved and boxed. And I know the shop made more than 15% profit on these.
                        All the "previous" year model sale drifting over from the golf club section into the golf ball section. Lots of great deals at more than 50% saving if one looks around and be patient.

                        No need to stockpile golf balls when I see a sale for golf ball these days. More deals at more frequent events

                        But at cost of manufacturing, like Costco's event, is something too good to be repeated. It might return to the market, but not as the same deal offered in the past. I suspect there might be a line of multiple grade of the brand to be offered at higher price ( still lower than the market ). we might see a representation of all the golf balls this manufacturer offers in the future as Kirkland Signature. This probably will take out all the boutique brands on the market today.

                        • ode replied to this.
                        • ode likes this.

                            PA-PLAYA If you can afford a $40000 to $50000 vehicle, you probably ain't worried about keeping it fueled up.

                            Try $60K to $90K

                            PA-PLAYAThe Ksigs will indeed have a niche market, but I don't suspect it will be a game changer for the bigger named-brand companies who've been around forever.

                            Yes, the major player will come close to the $35 / doz as the competition increase their sales volume.
                            instead of $45-$50 at current pricing. They can not compete with all the fixed cost of advertising and retaining a playing ( paying ) staff.

                                I recall working at DSG ten years ago, that golf balls had almost no mark-up. It was the item we made virtually nothing on. I believe it was a 10% margin on the most expensive balls (ProV1.)

                                Those marketing budgets and tour contracts must cost an awful lot of money.

                                  ZWExton

                                  If the store you worked for only gets 10% margin on the Titleist Pro V1, then either the store had a policy of profit center to manipulate cost to sales dept, or they are not getting a fair shack from the OEM.

                                    Had a good friend who owned a reasonably nice golf shop for several years, from the early-late 2000's. He always said that he made next to nothing on named brand equipment and balls, but gloves, apparel, bags and accessories were his big margin items.

                                    Not uncommon.

                                    He got out right before eBay made it impossible to stay afloat, not to mention the Golf Galaxy that was due to open a few years down the road 2010(?).

                                    Don't know how many privately owned golf stores remain open today, but there can't be many.

                                      PA-PLAYA

                                      Small operation pays close to retail for their inventory. Chain store and whomever could do volume could negotiate "credit" with the OEM upon committing on certain volume.
                                      Base for cost to the small shop is not the same as to the chain store.
                                      Yes, golf balls are tough to make profit on. The Proshop makes more by selling the golf balls by the sleeves.

                                        This is the company that is listed as the "manufacturer" of the Kirkland Signature ball. Per the USGA conforming ball list. Not sure as to how they became the "manufacturer", instead of the distributor. Could it be the USGA clamped down on this, and caused the K-Sig demise? Curious.

                                        http://www.smglobalkorea.com/en/about_us

                                        More discussion fodder.😉

                                        I was digging around for information on Nassau Golf earlier in the thread (website, Facebook page) and they brag about their golf balls and the fact they are manufactured in South Korea. That is interesting that a 'strawman' was listed on the USGA application. There have also been references that the 'big boy eoms' were having their legal staff look into the whole KSig phenomena.

                                        Release

                                        If ksig helped open more eyes then that is def good....But I don't think they(ksig) will make one bit of diff with the big OEMs and there price structure. The only retailer that does not offer sales are Titleist other than around xmas....Every other ball you can get % off, closeout, clearance etc. Quite frankly if one pays full retail for any ball other than Titleist, then they are an idiot.

                                        What I've learned from this is that are a lot of delusional Costco members with respect to what the ksig means to the golf ball industry, especially the big guys; and their are way more people than I ever imagined that would hoard a golf ball.