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The TRUE Cost of a $500 Driver💰


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Duration: 00:29:42

What's the REAL cost to make a $500 driver? Also, just how honest are golf advertisements?

2:34 - The true cost of making a $500 driver
17:30 - Golf marketing and truth in advertising
23:21 - The DFL List

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:titleist-small: TS3 9.5°, Tensei Blue
:755178188_TourEdge: CBX T3 15°, Project X HZRDUS Black
:callaway-small: Epic Super Hybrid 18°, Aerotech Steel Fiber FC HYB S
:755178188_TourEdge: C722 21°, Ventus Blue 8S
:touredgeexotics: CBX Iron-Wood 25°, Project X HZRDUS Black 6.0
:Sub70: 639 CB, Aldila NV 95 Graphite, 6–PW
:cleveland-small: CBX 48°
:mizuno-small: T22 54° and 60°
:edel-golf-1: EAS 4.0, Garsen G-Pro grip
:taylormade-small: TP5x and Tour Response

Full WITB with pictures

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Not surprising on the cost to manufacture a $500 driver and I think the markup is reasonable. 

Follow my golf journey to break into the 80s

Tester for the Titleist TSi Driver

Spring 2020 MGS Tester for the Fujikura Motore X Shaft

Updated 07/15/2022
Driver:callaway-small: Rogue St Max LS - Autoflex
Fairway Woods:callaway-small: Rogue Max St 3HL and 7 Wood
Irons:mizuno-small: JPX 921 Hot Metal 5 to AW - Aerotech Steelfiber i95 Stiff parallel tip
Wedges:ping-small: Glide 4.0 54 and 58
Putter:  :ping-small: PLD Custom Kushin 4

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How many of the DTC type companies produce tour quality drivers without the markup costs from Marketing? I'd be interested to know what Taylormade would charge for a SIM driver if they didnt have to pay for the ads in magazines, youtube commercials, TV commercials, pro level sponsorships, etc.

Tiger is the GOAT, change my mind.

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1 hour ago, KurtActual said:

How many of the DTC type companies produce tour quality drivers without the markup costs from Marketing? I'd be interested to know what Taylormade would charge for a SIM driver if they didnt have to pay for the ads in magazines, youtube commercials, TV commercials, pro level sponsorships, etc.

Here's selected financials from Callaway. As a proxy, SG&A is about 34% of Net Sales. However, not all of that is marketing cost, its all costs not directly attributable to production. 

callaway_golf-ar2019_0039__2.gif

Follow my golf journey to break into the 80s

Tester for the Titleist TSi Driver

Spring 2020 MGS Tester for the Fujikura Motore X Shaft

Updated 07/15/2022
Driver:callaway-small: Rogue St Max LS - Autoflex
Fairway Woods:callaway-small: Rogue Max St 3HL and 7 Wood
Irons:mizuno-small: JPX 921 Hot Metal 5 to AW - Aerotech Steelfiber i95 Stiff parallel tip
Wedges:ping-small: Glide 4.0 54 and 58
Putter:  :ping-small: PLD Custom Kushin 4

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The marketing and the tour spend are of course a factor, but I am happy to pay a bit of mark up for those companies that do the R&D to really push the category forward. Those features are are huge, movable weights, jail break, carbon crowns, adjustable hosels, etc. The market would not have moved as much I feel without these companies pushing this. 

:callaway-small: Epic Max LS 9° :Fuji: Ventus Blue 6X  (2021 Official Review) | :callaway-small:Epic Speed 18° Evenflow Riptide 70g 6.0
:titelist-small: 816 H1 21° Mitsubishi Motors Mitsubishi Chemical Holdings Chemical industry Mitsubishi  Rayon Mitsubishi Chemical Corporation, mitsubishi, blue, company png |  PNGEgg Diamana S+ Blue 70 S | 
image.png.08bbf5bb553da418019f0db13c6f4f9a.png SMS 4-5/SMS Pro 6-PW  image.png.267751aa721ee9cf3944fa2ff070b98c.png  Steelfiber i95 S (2023 Official Review)
:ping-small: Glide 4.0 50°.12°S/54°.14°W/58°.6°T PING Z-Z115 Wedge Flex | :cleveland-small:  SOFT 11S Super Stroke Mid-Slim 2.0
:ping-small: Hoofer Bag | :titelist-small: Pro V1 | Right Handed | Tracked by :ShotScope: V3

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  • 5 weeks later...

I'm surprised to see how little the jump in R&D is compared to cost of sales and SG&A! 

:ping-small: G400 MAX  Ping Tour 65

:cobra-small: FW 15* King F-7 :Fuji: PRO-65

:ping-small: G400 Hybrid Alta CB-70

PXG 0211 5-SW Mitsubishi MMT Graphite

:titelist-small: AP1 52* SW TT XP-95

:taylormade-small: MG 58* TT DG Wedge

Scotty Cameron Custom welded LN 

Grips- GP MCC+4

 

 

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On 9/13/2020 at 11:41 AM, TENBUCK said:

I'm surprised to see how little the jump in R&D is compared to cost of sales and SG&A! 

 

This is why I question the "R&D spending" comments that are often made in support of OEM efforts.  

Well, that and my inner cynic.  LOL

Driver: TM Original One 11.5* set to 11*, Aldila NV75 X, 43.5" -or- SpeedZone, HZRDUS Black 75 6.5, 43.5"
3w:  Cobra King LTD, RIP Beta 90, 42" -or- Stage 2 Tour, NV105 X, 42.5"
2h or 3h:  TaylorMade Stage 2 Tour, Aldila NV105 S -or- RIP Alpha 105 S
Irons:  3-PW Mizuno MP37, Recoil Proto 125 F4 (reshaft in progress, slowly); 1i & 3-PW Golden Ram TW276, NV105 S; 2-PW Golden Ram TW282, RIP Tour 115 R
GW: Dynacraft Dual Milled CNC 52*, Steelfiber 125 S; Scratch 8620 DS 53*, Steelfiber 125 S
SW:  Ram TG-898 56*, DGX ss2x; Ram Tom Watson 55*, DGX ss2x; Wilson Staff PMP 58*, DGS; PM Grind 19 58*, stock shaft
Putter:  Snake Eyes Viper Tour Sv1, 34"; Ping Scottsdale TR Craz-E, 35"; Cleveland Huntington Beach 1, 35"
Ball:  Wilson Staff Duo Professional, Bridgestone Tour B-RXS, Callaway Chrome Soft

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On 9/13/2020 at 12:41 PM, TENBUCK said:

I'm surprised to see how little the jump in R&D is compared to cost of sales and SG&A! 

Actually, a 20+% increase in R&D in one year is a massive jump. I worked in research, albeit a different industry. It is very difficult to ramp up research efforts quickly. The toughest part is hiring qualified people with appropriate experience, unless you're willing to pay extraordinary salaries, which the bean counters never allow.

Moose, my cat, is Siamese

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