Par4QC Would they handle them at that point? If so, why buy them there if you can get them at the clubhouse for the same price

It's been done . All the Kirkland Signature items were lower than the retail brand name counter parts.
Toilet paper, Greek yogurt, Olive oil............... But they sell it with the Kirkland Signature logo, so if anyone want to buy the "brand name" they are welcome to shop at other retail outlet.
It will be the Costco way or nothing. I dealt with them in the past and they will not yield. They got rid of the AMX and switched to VISA for exclusively accepted credit cards at the warehouse. Because AMX will not yield so didn't Costco.
If there are the beeswax to "maintain" certain price level, Costco will not have the item, as far as I understand it.

mikeintopeka

"Do they cut out Costco altogether and come back to market with the same product under their own house brand in the US and Canada, at their own price point, still undercutting the competition and keep all the profits in-house" ?

Perhaps ... but do the International markets see the fallacy in trusting a producer that has been suspect in supplying to consumer demand ?

Risk versus Actuality ... hmmm ... conundrum.

Provisional

Too many incidents happened in the last decade or two were not text book copies.
Cost for energy should be up in the future, when ? That is a good question. I would not be betting against the tide with limited time to cash in. Be very careful since it sure feels like the same as 2005-2006 right before everything went down the tube.

I was talking to a friend on the golf course today while waiting for the groups ahead, he also agreed that everything is getting up and up, all the pricing including the stock price, just like in previous incidents right before the crash.
Problem is, there is no safe harbor this time. With the global effect, the earth is much smaller now.

    mikeintopeka

    If anything, Costco will cut off the K.Sig. golf ball instead of the other way around.

    I don't know the details of the acquisition of the pattern from Taylormade to Nassau. Maybe there is a string attached to the sale. Maybe there is a non-competing clause for the N. America market .... who knows.

    I do know, the price point was the igniter for this crazy run of sale for this golf ball. If the price is up, even at a lower price point than the current OEM brands, it might not be as welcomed as the first run.

    Release Right, when to dump equities & where to go . Bonds dropped like equities in 08. A repeat will be killer for me .
    Interesting stuff , eh? ? Who's on first , Nassau or Costco? Biggest golf market interest since adjustable driver. Flash in pan, or more to come ? Too much $$ left on table for repeat, potential Titleist legal push back. Go to the old bait and switch .

    I'm old school, nobody gets hurt making a profit. Crank up 100,000 of these things and sell them again!

    Then raise the price $4.99 in June, another $3 next season and it's still a bargain at less that $20 a dozen. Then release it in Costco Red for a limited run... instant insanity.

    Then kick it up, introduce the "Tour" model, with an even softer cover at $30 a dozen... oh how WRX would die for this.

      DC300 oh how WRX would die for this.

      So, will all the major OEM brands. My guess is the boutique brands like the Snell will get hurt a lot more, a lot faster than the big house names.

      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.