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Author Topic: More on Pro Shop Pricing  (Read 1729 times)

txbowler

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More on Pro Shop Pricing
« on: December 23, 2010, 07:19:27 AM »
Just read an article on USA today that relates to pro shops perfectly.  The article was about minimum level pricing and the legal battle brewing in the Supreme Court.

The article states there are 2 types of consumers in general.  You are either a consumer that is educated by the retailer, and you are willing to pay a premium for that education or service.  Or you are a self educated consumer and prefer to deal with discounters because you don''t need to pay for the education.

The best retailers cater to both consumers and provide different pricing structures for each type of consumer.

Edited on 12/23/2010 5:33 PM

 

txbowler

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Re: More on Pro Shop Pricing
« Reply #1 on: December 23, 2010, 03:40:49 PM »
I guess a good example of this would be, you want a new TV for your home:

Do you:

A) Walk into Best Buy (or someplace like that), find a salesman and say I need a new TV and start the process.

or B)  Research the hell out of it on the internet, figure it out for yourself, and walk into Sams or order it from Amazon.com and save yourself $200?

kidlost2000

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Re: More on Pro Shop Pricing
« Reply #2 on: December 23, 2010, 04:01:32 PM »
Or ebay or crutchfield.com and get free shipping and no sales tax.

Plus in many cases a cheaper extended product warranty.

Money can be saved easily with very little work. Besides going to a custom shop, most box stores will be limited on what they know based on what they sell and the product information given by that manufacture.

For say TVs, blu-ray players ect the most common questions people have are on basic differences and terms they could learn online in minutes. Most box stores use it as an advantage to upsell.
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9back

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Re: More on Pro Shop Pricing
« Reply #3 on: December 23, 2010, 04:11:07 PM »
This is true, and an interesting way of thinking about it. Too bad pro shops will not agree. They need to make their dime, and if someone comes strolling in wanting them to drill up a blank high performance ball they got for $100 off the internet, they will naturally be upset. The only way pro shops can get around this issue is charging more for drilling balls purchased outside of their shops.

Lets do the math here (Using the C System 3.5 as an example)...
& these are purely estimates, don't hold me to the numbers...

Scenario 1 (customer buys ball directly from pro shop)
-Cost of ball/grips/slug to shop: $120
-Consumer pays with drilling: $220 ($180-ball, $40-drilling)
-PROFIT FOR SHOP: $100
-COST TO CUSTOMER: $220

Scenario 2 (customer buys ball offline for $100)
-Cost of grips/slug to shop: $10
-Consumer pays for drilling: $70 (since ball was not purchased @ shop)
-PROFIT FOR SHOP: $60
-COST TO CONSUMER: $170

-Scenario 2 shows the consumer paying $50 less than in Scenario 1
-Scenario 2 shows the shop making $40 less in profit than Scenario 1

In order for the shop to make the same profit off Scenario 2, they would need to charge $110 for drilling a blank ball, which is not going to happen unless they don't want the customer to return. Mind you repeat customers will want a break on the drilling fee on top of this.

We see the customer in a win-win buying offline, and the pro shop at a lose-lose. It is unfortunate, but if the cheap internet pricing keeps up at this rate, owning a pro shop will only be a side job, which will probably be done in your basement to save rent costs.

Dave-bestbowlingproshops

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Re: More on Pro Shop Pricing
« Reply #4 on: December 23, 2010, 04:35:42 PM »
I never have understood why shops would charge more for a ball brought from outside.  I make the same on drilling either way.
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Russell

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Re: More on Pro Shop Pricing
« Reply #5 on: December 23, 2010, 05:43:07 PM »
I don't think any shops do...and you're seeing the smart shops not carrying $20k in inventory anymore.  People can bring a ball to me all day long and I will charge $50 to drill it, or buy one off the wall that is a little more than internet price (about 15%) and it will still be $50 to drill the ball.
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Smash49

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Re: More on Pro Shop Pricing
« Reply #6 on: December 23, 2010, 06:55:49 PM »
I usually charge the same price for drilling an internet ball or one I sell.  The only time I may not is when it is something not normally carried by our shop or distributor. Lane #1, Visionary or something off the wall may have an additional charge but it's rare.  I have refused to drill some balls due there being something wrong with them.  I pass on some X-Outs and blems.

Smash49
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