Every
once and a while i get thinking about golf club pricing again. I see
new things coming out, i see the products come and go, and watch them
get bought and sold daily. I wonder what goes through the mind of
some manufacturers when they go to price a product. Do they really
think a towel is worth $40? A hat is worth $50? If you're
unfamiliar with the phrase, Law of diminishing returns, the
definition is as follows: 1. used
to refer to a point at which the level of profits or benefits gained
is less than the amount of money or energy invested. I'm sure
the manufacturers look at this from their perspective all the time -
afterall, it's what keeps a product going BUT i'm willing to bet they
rarely look at it from the consumer's end.... and I think it's time
they did.
This
is not just money, but time - energy - and performance. Recent
newcomer to the golf club industry, PXG, has a saying "nobody
makes golf clubs like we do.. period". Certain lawsuits
may shed light on how true or untrue that is, but the question posed
is: Is that a good thing? Are they efficient enough? is their
special elastopolymer really THAT much better than something that's a
fraction of the cost to use?
Law
of diminishing returns applies to consumers in this way - At what
point do you stop paying for a product and start paying excess. THAT
is the diminishing return. In golf you have a club, call it a 4
iron. That 4 iron is made of some sort of metal, or a
composite. It has a job to do. There are non-quantifiable variables
like feel, look, finish, and desirability that are based on what the
person using the club thinks about that club and that can move the
point of diminishing returns (PDM) one way or the other.
Marketing speak and industry claims aren't helping the matters
either.
The chart above can always hinge at the first point. Some technology is really good, some, not so much. It depends what the technology does to the playability of the club, the looks of the club, and the feel of the club. Take these three players as an example.
Player A only looks at performance. He/She
doesn't care about the name on the club, where it's made, or that it
might look campy or weird. They test out clubs for themselves and may
look online for reviews from noted sources on the subject. When
two products meet the same requirements, they will likely choose the
less expensive product. They would look at the chart below and say
"I'd definitely take the pink product. There's not enough
difference in performance to justify that kind of cost"
Player B
is interested in status and performance. As with Player A, they care
about how the club performs BUT it also needs to be something
well-known and not something from the local Wal-mart bargain bin.
They will do their research and testing and normally come out with
something that's in the mid to high price range. Very much where OEMs
price the "off the rack" selection of clubs.
Occasionally they will upgrade a component and spend a little more -
because you know, tour players do it. Player B would look at
the chart and say "There's room for improvement, i wonder if
there's another name brand in between that offers something as good
or better.
Player C gives affluent a new meaning. They might be
playing great but something new or better came out and they've gotta
have it. The best of it too - upgrades, special finishes,
everything extra that you can imagine. To them, it's worth it
to spend $3500 on a set of $1500 irons because it's a "limited
edition black set" even though there's no difference in the
performance of the club. Player C wouldn't care if the blue
club was better or worse than the pink club. It's name brand and it's
expensive. Sign me up. x
x
There's
all sorts of mashups between these players, but they represent the
beginning middle and end of the spectrum pretty well. I'm sure we can
all see a little bit of each of these in our own selves and figure
out where we land. I'm sure we've all been guilty of Player C once or
twice. Damn that special edition looks awesome - i'm gonna get it.
Still - the only thing in my mind that's WORTH paying for is
technology. The club HAS to do what the technology is meant to
do and it has to help in some appreciable way - not just be
different. Likewise that cost has to match the performance
enhancement over the next competitor. I talk about wedges a lot
because i have some of my own. The reason they're priced the way they
are is based on this system. The materials, the time, and the
base cost lends itself to that price in an effort to keep the product
going. The performance against other wedges speaks for itself
and justifies that price.
In
putters we can see the same story play out - There are many different
brands of putters - all have the same sort of styles but they range
from $90 up to $350 for the same type. Is a $350 blade putter
REALLY nearly 4X better than a $90 one? Depending what's going
through your head maybe, maybe not. It's hard to believe it's made of
that much better quality steel. In my days of playing blades
and mid mallets, i rolled a few "Scotties". I didn't
like them, personally. I found much better feel and control in an
Odyssey than I did with the SC. Saving almost $150 was a bonus
on that. I've since moved on to what will be the last putter in
my bag (unless they come out with something better) because it
actually marks a difference from anything out there. I paid more than
a SC would have cost, but it's worth it for the performance and the
noted difference in improvement. The same between OEM
adjustable drivers and "epoxy hosel" drivers. An M1
is justified to be more expensive than say, a Top Flite driver due to
the actual technology in it - but that's where it starts to get
hairy, how much more? If you play the driver on standard -
you're paying a premium for a certain look. For irons... if you
can't tell the difference between the feel of cast and forged - play
cast, they're cheaper.
For
me, a club has to really offer an improvement for me to spend the
money. My clubs are set up the way they are because they've hit
a balance of playability, look, and performance that gives me
confidence when i put them down behind the ball. There's nothing in
my bag that i say "ugh, i don't hit this well" yet i will
keep because of name brand, and likewise, there's nothing that i hide
because it's not mainstream and i think people will make fun of it.
You've
gotta do what you think is best for your game AND your wallet. NEVER
buy a club because of what you think you can resell it for when
you're "done with it". Thats' the wrong reason and
you're going to end up spending a lot more than you have to, thanks
to depreciation and the speed at which clubs are released.
Wether
it's "blue collar" brands like Bombtech, Maltby, Acer or
Kirkland..... or OEM brands like Air Force One, Tour Edge, or
Wilson.... even the expensive brands like PXG, Honma, Itobori and
Renegar. You have to find the price point you're comfortable paying
for the performance you're getting.
