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.

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  • 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.

                      ode

                      The crazy thing is I didn't find it to be an exceptional golf ball for my game. It was a good golf ball at a great price. I play/score just as well with a 2-piece TopFlite/Titleist/Srixon/Bridgestone/Etcetera........

                        Everybody has a friend who works at or is connected to Costco, I have two friends who have products distributed by them. They all have or have heard a story about this ball, no two stories are the same .

                        Lots of BS being circulated.

                          Costco has a market cap that Is greater than all the golf companies combined , any rumours of them being pushed around or bullied are rediculous . They could eat up any of them with a small nibble and crap them out .

                          ode .But I don't think they(ksig) will make one bit of diff with the big OEMs and there price structure. T
                          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.

                          Yes and no.
                          No one was trying to change the industry single handed. No Superman wanna be there.

                          The consumer WILL dictate the price line as their eyes are open now. Whether the golf ball returns to the Costco offering or not is none essential. Even at a higher price than the ridiculous $29.99 / 24 golf balls, the consumer will probably in general not going to fork over their money without a question mark.
                          There will always be those whom will take the Titleist golf balls in their coffin, it's a free country. One can do what pleases them with their money.

                            Whatever Costco might stand to gain from continuing the Ksig, it won't be a drop in the bucket compared to the everyday consumables and other bulk items they sell. They're not interested in overtaking the golf ball market, that's not who they are.

                            Outside of message board warriors and golf blog enthusiasts, I'd wager most golfers haven't even heard of the ball.

                              sdandrea1

                              I bought a nice rug from there last week for $139. Same style rug from a local flooring business was $299. I also have a Sam's Club membership and prefer some of their things over Costco, like paper towels, toilet paper, etc. Their Member's Mark line at Sam's is actually quite decent.

                              Costco just happens to be about 20 minutes closer.

                                  PA-PLAYA

                                  We have to drive 1.25 hours to get to COSTCO here in FLA. In VA, we have COSTCO and BJ'S 10 minutes away. We shop both a lot, but I prefer the quantity and sizes at BJ'S better.