In talking with one Shop they indicated that they felt pricing pressure from Golf Galaxy. Galaxy, it appears, has as a business model born from an "electronics" retail mentality, since the founding fathers are from Best Buy, cut prices until the last man (mom and pop's) is standing. They are able to do this so far because they are backed by big VC money. although I hear that is drying up. It appears that they are also on an aggressive growth plan while just about all others have seriously curtailed (Golfsmith) growth plans. This particular shop was in a high- rent area. Pressure from Galaxy and seriously reduced demand have done them in. More to come on other shops....
Greg > Here in the Midwest Mom & Pop Pro Shops are going out-of-business at a > record pace > > > Any ideas of why? Competition from big box stores, lack of fitting, repair? > Undercapitalized? Margins are very low on Pro line clubs, balls, bags, > accessories. Even with Minimum Advertised Price Programs there is too much > wheeling and dealing. Horse trade "trade in" policies, end of season > clearances (Midwest, put away your white shoes after Labor Day - including > golf shoes). Competition in clothing from Mass and Dept. Stores. "Rent a set" > return policies. > > How about some "business" discussion here? Retail climate is changing in > every industry! What happened to your town's Mom & Pop hardware store, > Drugstore, Appliance Store, Houseware/Kitchen Store, Carpet Store, etc.? It > all comes down to offering Service, Price, Convience, Value, Value and Added > Value.Expertice is a major part of value and Honesty never killed a sale. You > can't make it today if you expect to "throw open your doors" and offer name > brand at "the lowest price in town" because there will be someone down the > street who will beat your price and lure in the customer in with "balls below > cost"! My balls don't come cheap and they are not for sale! I can't afford > to lose them! > > Arnie > -- CoreComm Webmail. http://home.core.com
