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 Post subject: Re: smt equipment question
PostPosted: November 22nd, 2011, 6:21 pm 
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Joined: January 7th, 2010, 12:52 pm
Posts: 97
hahaha, Thanks,
I appreciate that.

Happy Thanksgiving to you.

Mike


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 Post subject: Re: smt equipment question
PostPosted: November 24th, 2011, 9:40 am 
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Joined: October 13th, 2009, 12:28 pm
Posts: 5371
Location: New England
SMT wrote:
Thanks Lew,

Actually, I have zero immediate plans for anything new at all.
It is simple business economics really..... Supply & Demand in it's most primitive form.


The lions share of the golf industry has been decimated regardless how you look at it.

Across the board, hardgoods have taken the largest hit in both quantity of sales as well as profit percentage down the line. Regardless of what anyone tells you... it has taken the Clubmaker down with it.

Nationwide, courses have felt the sting in a very real way and are closing, being taken over by management groups and trying desperately to fall into either of those two categories.

Softgoods remains the strongest part of the industry as fashions change, products wear out quicker than their hardgoods counterparts and corner cutting can be had without customer's noticing. In other words a faded color can be blamed on the washing machine.


For myself, I have taken many other avenues to remain active. Charity golf outings, a new ladies product soon to be released and within the next week, an OEM website called "Golf Coupons Daily" to appeal to the other players out there and to those both tired of paying retail as well as getting in their cars and driving to find the best prices.

The 21st Century is as exciting as it is scary. I don't quite know that I am ready for it, but I absolutely know that doing business the "old way" with a warehouse stuffed with a million dollars worth of product is sure not the way to get it done. I sure know that I am doing everything I can to keep up with the technology and the trends though.

But, to come up with a clubhead.... create it, test it, pay to have the USGA bless it, order a full run of lofts, import them, ship them to Illinois, insure them, warehouse them, insure them, keep them warm and dry and theft free. Pay employees to handle them, pay the State and our wonderful government matching payroll taxes for the same..., pay the phone bill, lights, water..... ME and hope that there is still a Clubmaker out there that feels strongly enough about the brand to spend the time to relay that message above all other brands he carries to a customer who knows that Dicks Sporting Goods is selling a Callaway Driver that he has 'heard of" for $159.00..... :whistle: :cry: :? :lol:

(anyone want to buy a component company) hahaha


Thanks for the question, I hope that you and your family have a wonderful Thanksgiving holiday.

Mike


IMHO - a very accurate overview for distribution in many Classification of Trades.


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 Post subject: Re: smt equipment question
PostPosted: November 24th, 2011, 10:22 am 
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Joined: January 7th, 2010, 12:52 pm
Posts: 97
Thanks.
Certainly I could go much deeper into it, but it adds up so much faster than almost everyone imagines.

The two theories are....

Sell cheap sell quantities.....
or
Sell high and sell less.....


The problem with the first is that on a low or shoestring margin, one glitch in the system, and your business crumbles before you.

Examples....

1. A boat delivering your goods is late or worse, dumps your cargo in rough seas. = no product

2. One of your largest accounts comes up ill, gets out of the business or dies.... there is never, EVER a way to recoup the profits from monies lost on his account unless you are filling the "hole" with tens of new customers. It simply never happens. Your season is ruined.

3. You choose to carry a product that nobody wants or takes to or the OEM's do something outrageous like they have been doing with pricing and free fairway woods etc. etc. etc. ..... your rapidly moving goods sit on your warehouse racks. Now you are adding to their cost at the "cost of money"

Several in this industry have gone to "just in time ordering".

They work with manufacturers here in the States that produce clubs under their own name and they simply piggyback some product when they are manufacturing. This is much safer of course, and you can work in much smaller order numbers. Little or no warehouse space. No employees... much easier to handle everything. ( wish I was more like this now, hahaha )


Pricing is a battle I face yearly and it has far more to do with the actual cost of the item from the factory as you can see from above.

I remember asking my wife one day.... "if you had a little blue marble, what would you sell it for"?

She said.... " I don't know, a nickel maybe... what would you sell it for"?

I said.... "A million dollars"

She laughed. (actually she called me an idiot)


I said... "after you sell yours, you have to go and get another one and find another customer and start the selling process all over again....... I only have to sell this think one time and I want to service the heck out of the customer and their new little blue marble if I can"


There are always two types of customers out there.... some are tried and true Walmart shoppers, wouldn't or COULD'NT go anywhere else, and that is fantastic.

But there are millions and millions of customers out there that would never step into a Walmart for whatever reason, and every client in between the two.

We as "dealers" of our own brands ( we are NOT "manufacturers") have to decide what customer or customers we are most targeting.

But back to the opening question... this industry has made us all take a huge step or two backwards and protect what we have while riding out the storm.

Happy Thanksgiving everyone.

Mike


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 Post subject: Re: smt equipment question
PostPosted: November 29th, 2011, 7:26 am 
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Joined: October 13th, 2009, 12:28 pm
Posts: 5371
Location: New England
AaronBadly wrote:
WOW, I will say some of the most seemingly open and honest writings I've ever seen from SMT on a golf forum. Maybe he has mellowed!


Agreed, this was a very interesting and well written post imho.


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 Post subject: Re: smt equipment question
PostPosted: November 29th, 2011, 10:13 am 
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Joined: January 7th, 2010, 12:52 pm
Posts: 97
Thanks.

The opening post had a serious question. It was laid out thoughtfully and I surely appreciated that and certainly the responses that have followed by everyone.

Thanks guys.

This thread, and a couple of others brings me back to the days when people would simply ask questions.

People who understood the answers would respond from a position of knowledge and actual discussion would take place. It was fun and interesting.

There was a "perfect storm" of sorts, a couple of years back though..... keyboard experts all of a sudden had more time to voice their opinions on topics and the rest of us were trying to keep our businesses afloat to resembled the days just after those of the new Millennium.

Some grew, some adapted, some fought it, some rolled over, some came to strong realizations.

I am not really sure how many of those categories I fit into. :lol:


Without an agenda or a point to prove, we still have so much information to share it is scary.

Thank you all for allowing me to have some fun in this thread and hopefully more to come on this forum.

I truly do love being helpful. I hope that I have been now, in the past and again in the future.

Keep those questions coming.

Mike


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