LA Golf having difficulties?

[Owengeorge13]

I read that LA golf is having some financial difficulties.  Anyone have any information on this?  What I read ,seems to go back at least six months or so…ie. Layoffs, people not getting paid.

Edited March 30 by Owengeorge13

[cnosil]

3 hours ago, Owengeorge13 said:

I read that LA golf is having some financial difficulties.  Anyone have any information on this?  What I read about it seems to go back at least six months or so…ie. Layoffs, people not getting paid.

Have only seen that they have laid people off due to financial struggles.   Haven't seen any details on recovery plans. 

[GolfSpy_APH]

I have only heard the mumblings and a few things here and there. Nothing much else. We had a call with them surrounding member testing and they weren't interested at this time. Maybe this had something to do with it? Maybe not. 

Eitherway I hope to see them succeed and turn the corner. They have a bunch of pro guys they support and will be more interesting if they pull back on that to get things further in order. 

Wish them all the best and think they make a unique product!

[bens197]

I appreciated how they chose to enter the market. Partnered with some BIG names (DJ, Bryson & Paige) to corner a segment of the market. 

Between major winners and social media stars it was a good move. Almost instant credibility. 

I own two LA Golf shafts…a DJ driver shaft and a P135 in my LAB Mezz.  I’ve struggled with the DJ but that’s a swing change rather than a product issue. When dialed in after my fitting it was so good. Both are top quality and made in the USA. I love that. 

Golf is a super difficult industry and I’d imagine their struggles had to do with competing against other premium brands. While the Ventus and Diamana lines are thriving it’s tough to stand apart. As others have said, I wish them well. Reed has a big vision and a big personality and while he is finding LIV players to put his gear in play, I do hope they can survive the long haul. 

[KC Golf]

I hope not. Love companies like LA that innovate and have quality products. 

[fixyurdivot]

22 hours ago, bens197 said:

Golf is a super difficult industry and I’d imagine their struggles had to do with competing against other premium brands. While the Ventus and Diamana lines are thriving it’s tough to stand apart.

Indeed.  Much like a new to market ball, not being constantly in the shadow of Titleist and Callaway seems impossible.  The market of really informed players/consumers, who invest time and money researching and testing equipment best suited to their game, is relatively small.

[bens197]

1 hour ago, fixyurdivot said:

Indeed.  Much like a new to market ball, not being constantly in the shadow of Titleist and Callaway seems impossible.  The market of really informed players/consumers, who invest time and money researching and testing equipment best suited to their game, is relatively small.

Couldn’t have said it any better. 
 

When you’re priced above $300 as a premium offering it will always be a difficult market to penetrate and sustain. 

[NM01]

1 hour ago, bens197 said:

Couldn’t have said it any better. 
 

When you’re priced above $300 as a premium offering it will always be a difficult market to penetrate and sustain. 

That’s what nice brands do. They don’t want to be associated with cheap or any other type of description as the more mainstream brands.

From a marketing perspective they didn’t really have anyone that connects with the general golfing public that would encourage those who buy otr clubs, don’t get fit and many who play what they see on tv that could sell their equipment. Paige despite her large social media following isn’t influencing any club purchases. She didn’t do it for PXG either.

Her social media following isn’t for the actual content she puts out which is not all the great.

even on the mainstream side it can be hard. As big as Mizuno and Wilson are they have a very small percentage of the market share on any product. 

[bens197]

1 hour ago, RickyBobby_PR said:

That’s what nice brands do. They don’t want to be associated with cheap or any other type of description as the more mainstream brands.

From a marketing perspective they didn’t really have anyone that connects with the general golfing public that would encourage those who buy otr clubs, don’t get fit and many who play what they see on tv that could sell their equipment. Paige despite her large social media following isn’t influencing any club purchases. She didn’t do it for PXG either.

Her social media following isn’t for the actual content she puts out which is not all the great.

even on the mainstream side it can be hard. As big as Mizuno and Wilson are they have a very small percentage of the market share on any product. 

Nice brands don’t always mean built for the long haul. 
 

Mizuno is an outlier in this discussion and Wilson IMO is still trying to find their identity. 

[GolfSpy_APH]

If LA golf is cutting back I wonder what that means for their product cycle. Do they push and try to release more new products in an effort to create a bigger splash and grab more attention or work with what you have and stabilize for a little while and then make a push for new equipment.

[NM01]

55 minutes ago, bens197 said:

Nice brands don’t always mean built for the long haul. 
 

Mizuno is an outlier in this discussion and Wilson IMO is still trying to find their identity. 

For sure. PXG started out as a high end exclusive niche brand that many thought wouldn’t last 3-5 years. 
 

Some niche brands are there to build a brand and then offload it to someone else. Not sure how much the ones who are more inclined to buy higher end products looked at the brand and said it’s the same people from matrix and decided not to consider the brand at all. High end golf products have a very small market outside of places like Japan where high end is very popular.

To be sustainable you have to get the buyers in the virtual door. LA golf imo wasn’t good at marketing and drawing in that audience. Their story didn’t resonate with people either.

With Mizuno and Wilson I was just pointing out that in the industry even having a more mainstream name and a large business portfolio doesn’t guarantee you can break into the market shares that the other companies have. Golf shaft wise there’s already an established market from fujikura, PX, Mitsubishi, Graphite Design that have a hold on the market share that’s tough to crack 

[bens197]

1 hour ago, GolfSpy_APH said:

If LA golf is cutting back I wonder what that means for their product cycle. Do they push and try to release more new products in an effort to create a bigger splash and grab more attention or work with what you have and stabilize for a little while and then make a push for new equipment.

It’s a good question. The capital outlay for developing new product may not make much financial sense if they’re struggling. 

[chisag]

14 minutes ago, bens197 said:

It’s a good question. The capital outlay for developing new product may not make much financial sense if they’re struggling. 

 

... I can't imagine the decision sell LA golf balls for $69 a dozen has produced any new fans either.

[bens197]

11 minutes ago, chisag said:

 

... I can't imagine the decision sell LA golf balls for $69 a dozen has produced any new fans either

Exactly. 

[NM01]

2 hours ago, GolfSpy_APH said:

If LA golf is cutting back I wonder what that means for their product cycle. Do they push and try to release more new products in an effort to create a bigger splash and grab more attention or work with what you have and stabilize for a little while and then make a push for new equipment.

Depends on where they are making cuts. Labor costs are high so letting people go saves a good amount of money. It’s happening in all industries here. So if they are maintaining their r&d staff they may continue to add products, companies here that layoff still move forward with products that can make the company money while cutting labor costs.

if they are cutting back r&d then they probably try to steady the ship with what they have 

[Rob Person]

Read this post, and then saw an IG ad for LaGolf balls in my feed....

[KC Golf]

It would be interesting to see what the financials look like for PXG.  It started at the high end, but now has over the last few years worked back to more of a main stream pricing model with lots of discounts.  They seem to have a lot of product offerings for a smaller OEM compared to a Titleist or TM.

LA Golf is in a difficult spot.  With guys like DJ and Bryson on LIV they definitely are not getting a lot of media or consumer attention.  I would not be surprised if another shaft company like Nippon or KBS buys it.  Similar to Accra being bought by UST.

[KarlNacho]

I'm in Canada and to order their stuff I loose on the dollar and shipping.  Too pricey.

[NM01]

8 hours ago, KC Golf said:

They seem to have a lot of product offerings for a smaller OEM compared to a Titleist or TM.

Unlike Titleist or TM PXG doesn’t have anyone to answer to. Bob can make as few or as many models as he chooses. The bigger brands have to worry about sales and the normals you have the harder it becomes. PXG sells older models whereas the bigger OEMs stop selling older releases once the new ones are out and all that’s left at retail is leftover inventory at a reduced price.

 

[NM01]

9 hours ago, KC Golf said:

LA Golf is in a difficult spot.  With guys like DJ and Bryson on LIV they definitely are not getting a lot of media or consumer attention.  I would not be surprised if another shaft company like Nippon or KBS buys it.  Similar to Accra being bought by UST.

Typically companies buy other companies for patents or products to bolster their offering. Not sure LA Golf has anything that Nippon or KBS want or need. Or any other shaft company. Kbs tried to get into the driver market and it wasn’t a big weekly item. 
 

Just to note Accra is owned by True Temper not UST.  Accra provided TT with a reach into the clubfitting world that they didn’t really have along with shaft products for juniors. It was a good buy for TT

Edited April 1 by RickyBobby_PR

[Stevem]

Like all of you, I hate to see or surmise about a company that is struggling, especially if it is US based.  But let's face it, LA Golf pushed the limits of market pricing and the market pushed back.  When you are charging upwards of $ 60 for a dozen balls and $ 1500 for a putter with minimal Tour representation, you are going to struggle to make it, especially when your paid tour people are not visible to the audience.  Bryson is a lightening rod (although I miss him), DJ is simply counting his money, and c'mon, Paige can resent being eye candy, but that is all she is, like it or not. Perhaps Miura has figured out how to sustain itself with a core group of avid customers willing to spend nearly $ 3 K for a set of irons. But that cultish business model doesn't always extend to other applications.  

[RDsmith]

LA Golf was formerly Matrix, which went bankrupt. Reorganized as LA Golf. 

Not a new company. Business as usual.

[wely324]

Regardless of the quality, the products are priced at a level where very few people would even consider them, let alone who is winning with their stuff (outside of LIV). $400 for a putter shaft... ok, bye.

[cnosil]

12 minutes ago, RDsmith said:

LA Golf was formerly Matrix, which went bankrupt. Reorganized as LA Golf. 

Not a new company. Business as usual.

Not exactly.  La golf was a new company that bought all the assets from matrix.  
 

https://mygolfspy.com/news-opinion/la-golf-shafts-same-strategy-new-arena/

 

Edited April 1 by cnosil

[THE GOLF GUY]

A good start is making products more affordable…

[cnosil]

10 minutes ago, THE GOLF GUY said:

A good start is making products more affordable…

Depends on your market.   Many boutique companies now do business in Japan where the thought seems to be the more expensive the better.   

[NM01]

2 hours ago, Stevem said:

Like all of you, I hate to see or surmise about a company that is struggling, especially if it is US based.  But let's face it, LA Golf pushed the limits of market pricing and the market pushed back.  When you are charging upwards of $ 60 for a dozen balls and $ 1500 for a putter with minimal Tour representation, you are going to struggle to make it, especially when your paid tour people are not visible to the audience.  Bryson is a lightening rod (although I miss him), DJ is simply counting his money, and c'mon, Paige can resent being eye candy, but that is all she is, like it or not. Perhaps Miura has figured out how to sustain itself with a core group of avid customers willing to spend nearly $ 3 K for a set of irons. But that cultish business model doesn't always extend to other applications.  

Depends on what one defines as success. Nike felt like 4% of market share which was still around $20 million a year in sales wasn’t enough to stay in the golf business, Mizuno and Wilson amongst some other brands are in that same range and they are still pushing forward.

Also high end brands aren’t looking to draw the average consumer. They are targeting the golfers who have the money to spend on higher end items and don’t worry about price. A tour presence really isn’t needed. Miura has very little presence but there’s a big enough market in the US for them. LA golf wasn’t only going after the U.S. market. There’s a presence in Asia that is all about high end and flashy.

PCG was a high end brand that many thought wouldn’t last. They had a line of private jets constantly flying into the local airport if people coming in to get fit, lay the fee to have them built that day and then fly back out.

Unfortunately not all businesses are successful. LA got couldn’t keep their putter shafts in stock once they were showing up in tour in bag like Rickie and Bryson. 
 

Honma sells balls for that same price range. Theres a huge market for them in Asia. A friend I was stationed with has friends in Japan. He gets the Honma balls shipped to him 

[NM01]

1 hour ago, THE GOLF GUY said:

A good start is making products more affordable…

Why? There are lots of high end brands that are successful despite their price tag?

Could Ferrari or Lamborghini sell more products if they were more affordable? Sure,  but that’s not their goal. Could graphite or any of the shaft companies sell more shafts if they priced them lower? Probably, but they want some offerings to be premium and therefore there is a premium price tag.

Not everyone’s business model is to sell to the masses

[WiTerp50]

Part of the problem are the contracts with players over at LIV. As of today - Bryson who?  Lots of niche putter companies that don’t have big contract players are hanging in there. PXG is different in that Parsons can afford a low profitability. It is a hobby for him. Regardless of the technology, the business model has to work. 
Coming from a buyer of the Texas Instruments Home Computer and a Betamax VCR. 

[Rob Person]

8 hours ago, WiTerp50 said:

Part of the problem are the contracts with players over at LIV. As of today - Bryson who?  Lots of niche putter companies that don’t have big contract players are hanging in there. PXG is different in that Parsons can afford a low profitability. It is a hobby for him. Regardless of the technology, the business model has to work. 
Coming from a buyer of the Texas Instruments Home Computer and a Betamax VCR. 

Don't be hating on my commodore 64c ! Hah and atari II