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June 26, 2004

Callaway Golf screwed up!

Poor Callaway Golf, their sales are down and they are struggling to compete in the driver market. In the June 18th Wall Street Journal there was an article about Callaway, their dominance of the driver market in the 90's, their screw up in the late 90's and their current struggle to compete with Taylor Made (my driver of choice) and the onslaught of new Japanese manufacturers. So you know, the driver is golf's highest margin product.

Let me sum it up. In '91 Callaway introduced the Big Bertha, obviously it was a huge success. In '98 they screwed up when they developed the ERC II which the USGA banned. Over the last few years the company has really not done much as far as innovative technology. They only have one driver with a head over 400cc's. Their logic was if you have the most expensive driver on the market golfers will buy it. Well I got news for you, this isn't the 90's, we all have oversized drivers, we are much more savvy shoppers now and your arrogance of charging us top dollar is over & you're feeling it.

Here's my advice to all of you that play Callaway: Wait until the end of the summer to buy the new Great Big Bertha II driver, prices will be coming down. Expect an onslaught of new advertising from Callaway showing them as an innovative company with competitive pricing. I would also expect Callaway to be getting off their asses and introducing a lot more new products over the years if they want to stay in business. What were they thinking when they bought Top-Flite anyway?

This is another case of a company losing site of what is important, the consumer. They liked sticking it to us with the highest priced drivers on the market and it worked for a while. Meanwhile, their executive team kicked back, played golf and laughed at how stupid we were for paying so much. Their greed benefits us now, prices are coming down, there's more competition and the technology is letting us hit an occasional 300 yard drive. I'm not saying Callaway has bad products, I'm saying as a company they screwed up and pretty soon all golfers will be able to afford any driver they want.

13 comments:

AmbiDextri said...

While I agree with you over the idiocy and arrogance of Callaway it is also true that Taylor Made and their bid for supremacy in the driver market have killed the driver as the biggest margin product in golf, especially for small shops.
I don't know about the States but in Europe TM have given huge discounts to bulk buyers with the result that the 400 odd euro selling price in the megastores is basically the same as the cost price for a small shop.
Sure, free market at work, but we will buy any driver we want only because there is no margin left in golf.

Anonymous said...

I wonder what the margin was for the TM R360 XD Ti driver I just bought on pgatour.com? Cost me a paltry $149 (shipping free!)...

Anonymous said...

Gee, I bought my entire set of clubs for under $200 new and after 2 years replaced the graphite shafted oversize headed driver with a steel shafted not-oversized driver that was $30 new. I've gone from the upper 90s to the mid-lower 90s over a two year period. Methinks lessons would do more for me than megabuck clubs at this point.

Best Buy said...

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Couch Potato said...

"Help me if you can I'm feeling down" - I also think I must be lost.

I was searching for Elvis and somehow ended up in your blog, but you know I'm sure I saw him on the golf course yesterday. Now this is strange because usually I see him in the supermarket.

Honest really, last time I saw him there he was right in front of me, next to the steaks singing "Love me Tender".

He said to me (his lip was only slightly curled) "Boy, you need to get yourself a shiny, new lcd tv to go with that blue suede sofa of yours.

But Elvis said I, In the Ghetto nobody has a lcd tv .

Dude I'm All Shook Up said Elvis. I think I'll have me another cheeseburger.

Then I'm gonna go home, put ma dancin' suit on, munch me some uppers and freak out to that maaaaaaaaad surfing scene in Apocalypse Now on ma lcd tv .

How cool is that boy?

And then he just walked out of the supermarket singing. . .

"You give me love and consolation,
You give me strength to carry on "

Strange day or what? :-)

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Rachel said...

Well this blog certainly is not about dunlop golf equipment. What the heck! I guess the internet can play some tricks on us sometimes. I have been on-line for two hours
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blog to my favorites list so I can come back later on and read some more stuff. Well I guess I should get back to researching dunlop golf equipment.
Even though my search is not on Callaway Golf screwed up! I am glad I came across your blog. Keep blogging away!

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