Open Your Wallets Wider, Golf Gear is Too Damn Cheap

Written By: Tony Covey

As I’ve heard it from hundreds of you; one of the prime suspects in the crime that is the decline of golf is the cost of the gear itself.

Golf equipment has gotten too damn expensive. These golf companies have a lot of nerve thinking they can charge $400 for a driver.

Nobody can afford to spend $400 in this economy.

The prevailing perception is that the manufacturers are gouging the consumer. They’ve steadily raised prices and haven’t given you a damn thing more for your money.

Those sonsofbitches.

Golf equipment is overpriced, right? They’re screwing us.

Probably not.

Let me preface all of what’s to come with the acknowledgement that what I’m about to say might be the most unpopular thing I’ve ever written for MyGolfSpy (and I’ve written some amazingly unpopular articles)…and so here it goes.

Golf equipment is too damn inexpensive.

I’ll give you a moment to choke that down…

Not only is the cost of golf equipment likely to rise (and soon), but I’d argue that the cost bump is not only justified, it’s long overdue.

Drop the rock.

Let’s be rational for just a moment.

Absolutely, $400 is a lot of money. I’m not arguing otherwise. Golf clubs are expensive, but that’s not the same thing as too expensive. Look around…over the past decade…the past two decades, the cost of everything around you has risen.

We’re all familiar with inflation, right?

Everything Costs More. . .Except Golf Equipment

Here’s the really amazing thing. Despite inflation and the rising cost of life in a general sort of way, the cost of golf equipment has remained nearly unchanged for the better part of two decades.

To this point in time, and unlike any other consumer product or service I could find outside of the technology industry (stuff with circuit boards), the golf equipment industry has defied inflation.

It’s astonishing.

Let’s look at some comparables from 2006 to 2013.

Worth a quick mention, there’s nothing particularly special about 2006, it was simply a point in time where all of the data (sourced from statista.com, NADA.org, and the Department of Labor’s Bureau of Labor and Statistics all lined up).

I chose a mix of necessities, near-necessities, and entertainment options to paint a well-rounded picture of how inflation (and other factors) have impacted the cost of goods and services around us.

The Diff column shows the percentage difference between what something should cost today (based on Labor and Statistics CPI calculator) and the actual cost. Anything with a minus value reflects a cost difference that hasn’t kept up with inflation (consumer friendly – costs less than it probably should), while a plus value reflects a cost difference above the inflation rate (costs more than it should).

Obviously there are other factors (supply and demand, subsidies, etc.) that account for slight variations off of the inflation rate, but generalized, I think the data is compelling.

While the cost of nearly everything else on this list outpaces the inflation rate (some of them by more than a little), if we use 2006 as a baseline, a new premium driver adjusted for inflation should have retailed for something in the neighborhood of $462.22 last year.

You’re already $62 ahead. It’s the coffee guys that are screwing us.

But Wait…That’s Not What We Should Be Looking At

It’s actually totally misleading to use 2006 as a baseline because $400 as the standard for a premium driver actually goes back a lot further.

In 2005 the Titleist 983K and TaylorMade R7 Quad (among many others) retailed for $400. Ok…1 year isn’t that much further.

What if we go back to 2000? The TaylorMade R300 Series. You guessed it, $400.

How about 1997? Titleist 975D…$400.

1994? Big Bertha. Yup $400.

Over the years there have been anomalies (Great Big Bertha way back when was $500). The original Fusion driver was expensive, and TaylorMade has been known to exceed the $500 price point every now and again, but the occasional outlier aside, $400 bucks…not $400 adjusted for inflation, has been the standard ask for nearly every company’s premium driver for the better part of 20 years.

True story.

Adjusted for inflation, the equivalent of 1994’s $400 driver should cost $643.30 today.

Let’s flip it around. Today’s $400 was $248 and change back in 1994. Drivers (and it’s true of nearly every club in the bag) are substantially cheaper…nearly 47% cheaper…than they were 20 years ago.

A Price increase is long over-due

I’ve heard from a few manufacturers now that supplier pressure is increasing. Overseas factories are raising prices and that means higher costs for everybody.

Don’t discount the positive role that the flood of equipment has played in keeping prices down either. Many hate the fact that some companies habitually dump new product on the market every 4 to 6 months, but the reality is that volume too has helped keep your costs in check.

The rapid decline in equipment sales is going to have consequences for the consumer. Less gear ringing the register, and fewer discounts means the volume model isn’t going to work anymore. Your driver isn’t going to be obsolete after 6 months, but you’re probably going to have to pay a bit more for the increased lifespan.

Golf companies will need to make their money through higher margins, and that means higher prices for all of us…even in this economy.

$349 and $449…my guess is those will be the new standards. Some may go even higher. You won’t like it. Inflation or not, $450 is still a lot of money for most of us, but that doesn’t mean the gear is overpriced.

Golf clubs might be expensive, but the reality is they’re cheaper than they’ve ever been.