I would like to know what the cost structure is for top branded golf
clubs sold.  For example, what percentage is the actual raw
material/labour cost of the club, what % goes on endorsement,
advertising, margin and profit.  Figures for a set of irons ideally or
drivers secondarily.

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Clarification of Question by jonesuk-ga on 25 Jul 2006 10:24 PDT

Can anyone give any advice as to how I could maybe get this answered. 
Haven't used the site before and feat I may be doing something wrong!

Thanks

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Request for Question Clarification by pinkfreud-ga on 25 Jul 2006 13:00 PDT

I don't think you're doing anything wrong. Your question is clearly
phrased and attractively priced. I suspect that the reason you haven't
gotten an answer is simply that authoritative information on this
subject is not readily available. I spent some time searching, and I
came up empty. Unless you're on a deadline, I suggest that you leave
the question open in case someone is able to find what you need.

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Request for Question Clarification by czh-ga on 25 Jul 2006 14:53 PDT

Hello jonesuk-ga,

I've also tried to answer your question. One of the frustrations with
it is that it's difficult to come up with suitable search terms. The
results searching for "golf clubs" (equipment) have to be separated
from the other "golf clubs" (facilities) hits. Can you give us some
additional information about the context and background of your
question so we can try to come up with a better and more effective way
to search? Thanks.

~ czh ~

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Clarification of Question by jonesuk-ga on 26 Jul 2006 02:49 PDT

Thanks to you all for getting back - sorry for picking a tricky one
for my first question - really impressed with this resource and am
annoyed I hadn't found it before now!!

Not too sure what I can do in terms of providing extra clarification. 
I am thinking of setting up a company selling clone golf clubs and
want to be able to demonstrate how branded companies are currently
pricing clubs and the reasons why they are the price they are.

Thanks

JonesUK,

While it may seem like your question has been ignored, that is not the
case.  I'm sure that I'm not the only person to have spent some time
looking for the elusive answer to your question.

Your question is concise, clear, and specific, just the way I like
them.  Your list price is appealing.  I simply haven't been able to
find an answer, yet.  I haven't given up, but my time to research will
be very short over the next two weeks.  I hope that someone can find
the answer for you.

Thanks for giving Google Answers a try!

While I'm sure that this doesn't completely answer your question, I
will try. According to the Balance Sheet for ELY (Callaway Golf), they
spend approximately 30 million dollars on research and development and
that is of 998 million in sales revenue, or approximately 3% of total
sales. That said, I'm not exactly sure how much material or labor cost
goes into each club or set of clubs, as that information is much
harder to come by (probably why the question hasn't been answered).
Being as it is, the golf club market is highly saturated with "evil"
conglomerate companies, most of which you can't get any information
out of. My suggestion, depending on what stage you are at in your
venture, would be to figure out how much making the clubs will cost
and then see if you have a greater margin against retail clubs. Also
realize your target market, custom clubfitting for a 1 or 2 handicap
is one thing and creating a knockoff "Sasquatch" for the 15+
handicapper is another. Either way, there is money to be made
everywhere and I wish you luck in your endeavor, especially if you can
add 10 yards to my drive and keep $150 in my pocket!

Thanks for the comment.   I am quite far along with my research and
know difference in prices people charge for clones vs originals as
well as total company p&ls.  The problem with looking at company level
P&Ls is that a company like Callaway sell a huge range of products,
clothing to balls to clubs and it's really the specific breakdown of
cost structure of clubs I'm after. Thanks for any help.

A golf club can be constructed from imported castings, shafts and
other parts. Labor is minimal. Total cost of any club is under $25.
FWIW, (not much) I know a fellow who is making clubs and selling them.
The balance of the cost of a club in endorsements and various profits
along the way to the retail customer. Most of the variation in clubs
is between the buyers ears.