Quote:
Originally Posted by O.city
Guess I’m out of the loop on that?
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Releasing new lines every 6 months led to retailers holding on to a ton of rapidly-depreciating backstock which ****ing killed them.
There's a good article on MyGolfSpy about it. The basic premise is this:
TM releases the R1. Vendors pay $290 for it, plus shipping. It's originally marked at $399. It doesn't sell that well, so TM announces a price cut. Now it's $349, then $299 after only a few months. So you have to blow through your entire inventory in very, very little time, or turn basically no margin on that. Combine that with the fact that TM was pumping out five or six driver models a year, and you have a toxic atmosphere.
Example, 2014: SLDR 430, SLDR 460, SLDR White, SLDR mini, Jetspeed
Compare that to Ping or Titleist, whose clubs are not eligible for mass retailer discounts and undergo structured reductions in their prices (after 1 year the G400 goes from $399 to $299, etc.)