I got busted for selling golf balls

43 replies
Hey,

I've got a great marketing story for you guys today... When I was about 10-12 years old, I was an avid fan of the local Golf Club (It's just down the street)... And I used to love going through the "ditch" at the Club, looking for Golf Balls...

I learned very fast that their were certain balls aka Pro V1's that were highly valuable and I could sell for more.. (Aka more then a dollar per ball), and the rest of them were more of a mix...

So as usual, I befriended some of the staff at the club, who used to let me play on the "putting green" for free (I wasn't a paid member till the next year). One day, I was putting, and this guy noticed the overflowing amount of balls in my bag, and asked me why I had so many. I told him, that I was planning to sell them... And he offered me $15 on the spot for a bunch of them..

As this transaction is going down, I remember having this lady come out, and tell me that I couldn't do the deal there.. (Again, she let me finish this transaction).. Another time, I had the owner of the club's father, actually tell me I couldn't sell balls near the course.

So that was my little short story...

Now, I want to get to the marketing lesson here... It's about "VALUE", and pricing. See, I made A LOT of mistakes when I was young and entrepeneurial (I grabbed a ball off the course, even carried a few beer bottles for .10).. But, I did learn a TON Of stuff about valuing your merchandise.

Remember how I said, the PROV1's went for a $1? Well, the reason I did that, was because I knew to buy them knew it would be $3.. So I figured, what would be the best way for it to be a no brainer for someone? Make it really cheap... See, their were other people who did what I did, but they would never sell the ball for $1.. They would have charged a couple dollars a ball.

So that's why, I, at 10-13 years old - became the "source" of prov1's, because I gave the best deal to people. So where is the internet lesson here? Know what the things you provide are worth, and make a price IN RESISTABLE.

There was NO WAY, that anyone would not buy them from me, for $1, because they KNEW that they would cost more ANYWHERE else. Make yourself the source for the best price, and people will come running..

Ex. If everyone is selling a guide about "X Topic" for $9.95. Sell yours for $7, be the best deal on the marketplace. You'll get more sales... And you'll be the inresistable source for the best deal.

Why do you think people shop at Costco? Because they know they will get the best deal.. Deals are irresistable. I had the bar tender at the same Golf Club, ask me to find him those balls (this is when I was younger), and he bought them from me on the JOB.

So I hope i didn't just embarrass myself for nothing. I really wanted to share with Warriors how I got started. I didn't just show up online, and assumed I knew what I was doing in business. I spent a long time, embarrassing myself, and putting myself out there.

I don't have the guts to do what I did back then now. I get nervous now.

Caleb

EDIT: I didn't so much mean as to say "race to the bottom" in price, what I meant was provide irresistable value for the price someone is paying. Cheers - Caleb
#balls #busted #golf #selling
  • Profile picture of the author Thomas Smale
    I don't agree.

    Competing on price is an uphill struggle in my experience. Sure, it works for some companies, but it's not always the best way.

    I'd rather just be the best and charge what I want (within reason).

    There's no benefit in undervaluing your own services/products. Having lower prices than competitors also gets you clients who only care about price and nothing else. These people are a nightmare to deal with and can take up a lot of your time.

    It's fine when you're a kid hustling for a few bucks selling golf balls, but I don't think it can accurately be applied to all businesses.
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    • Profile picture of the author Caleb Spilchen
      Originally Posted by Thomas Smale View Post

      I don't agree.

      Competing on price is an uphill struggle in my experience. Sure, it works for some companies, but it's not always the best way.

      I'd rather just be the best and charge what I want (within reason).

      There's no benefit in undervaluing your own services/products. Having lower prices than competitors also gets you clients who only care about price and nothing else. These people are a nightmare to deal with and can take up a lot of your time.

      It's fine when you're a kid hustling for a few bucks selling golf balls, but I don't think it can accurately be applied to all businesses.
      Hey,

      Thanks for your reply. In my opinion, having a lower price is the easiest way to beat the competition out. Of course, it won't apply to all businesses, but in a lot of cases when selling merchandise, if you can go lower, sometimes its the best way to sell more volume.

      To add to that, I tested it in the IM niche.. Being the lower priced offer. I sold A LOT more copies then normal, because I was the less expensive option, with the same value. Hey, I just thought someone might value from the story.

      Caleb
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      • Profile picture of the author Thomas Smale
        Originally Posted by Caleb Spilchen View Post

        Hey,

        Thanks for your reply. In my opinion, having a lower price is the easiest way to beat the competition out. Of course, it won't apply to all businesses, but in a lot of cases when selling merchandise, if you can go lower, sometimes its the best way to sell more volume.

        Caleb
        Not really. Let's assume price is the only variable I change/compete on.

        1) I lower my price
        2) I get nice sales for a while. Competitors notice.
        3) Competitor lowers their price below mine
        4) Repeat
        5) Both of us get to the stage where we are making little/no profit (using your example of selling merchandise)

        It's a lot easier to decrease prices than increase them. So I'd be very careful before going out there and charging rock-bottom prices from the start. It's rarely sustainable unless you have some advantages that your competitors don't (in your golf ball example, that's "you" being free labour/having no costs, which obviously a real company can't compete with).

        It can work in IM as you have no variable cost. But that's not to say you wouldn't make more with a higher price point (you might sell less, but you could net more). Obviously the only way to find that out is to split test. Bear in mind - if you get a rep for selling $7 products, then it's going to be hard to release a product at a higher price point as your perceived value is already relatively low.
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        • Profile picture of the author Caleb Spilchen
          Originally Posted by Thomas Smale View Post

          Not really. Let's assume price is the only variable I change/compete on.

          1) I lower my price
          2) I get nice sales for a while. Competitors notice.
          3) Competitor lowers their price below mine
          4) Repeat
          5) Both of us get to the stage where we are making little/no profit (using your example of selling merchandise)

          It's a lot easier to decrease prices than increase them. So I'd be very careful before going out there and charging rock-bottom prices from the start. It's rarely sustainable unless you have some advantages that your competitors don't (in your golf ball example, that's "you" being free labour/having no costs, which obviously a real company can't compete with).
          Hey,

          Thanks for pointing that out, that is one thing that I really did think about, is the constant falling of prices of everything.

          Looking back, today. I own a corporation now, and run a large business.

          Anyway, I was trying to apply a lesson to a good story. Guess, I didn't do it right.

          Caleb
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          • Profile picture of the author Thomas Smale
            Originally Posted by Caleb Spilchen View Post

            Hey,

            Thanks for pointing that out, that is one thing that I really did think about, is the constant falling of prices of everything.

            Looking back, today. I own a corporation now, and run a large business.

            Anyway, I was trying to apply a lesson to a good story. Guess, I didn't do it right.

            Caleb
            It's all good. You're still young

            I think the best thing to get from this story was that you actually got out there and tried something and consequently made money.

            That's something that 95% of people can never say

            By the way, I'd buy Pro V1's off you at $1 all day long
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            • Profile picture of the author Caleb Spilchen
              Thomas,

              Originally Posted by Thomas Smale View Post

              It's all good. You're still young

              I think the best thing to get from this story was that you actually got out there and tried something and consequently made money.

              That's something that 95% of people can never say

              By the way, I'd buy Pro V1's off you at $1 all day long
              When I started charging $197 an hour for consulting.... Well, let's just say I don't sell golf balls anymore...

              And I'd buy them for that all day long too .

              Caleb
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  • Profile picture of the author Bill Farnham
    Hey Caleb,

    Remember how I said, the PROV1's went for a $1? Well, the reason I did that, was because I knew to buy them knew it would be $3.. So I figured, what would be the best way for it to be a no brainer for someone? Make it really cheap... See, their were other people who did what I did, but they would never sell the ball for $1.. They would have charged a couple dollars a ball.
    Nice story, but attributing your success on a race to the bottom leaves out a few details that would have made this a great story.

    Had you tested the price, $1 vs $1.50, as an example, you may have found out your success was related as much to being at the right place at the right time as in being in front of targeted traffic more than just having the lowest price.

    The reason I mention this is due to people's instinctive reflex to attribute an idea they have about a given success to something that makes sense to them without really getting to the root cause for such a success. Testing a higher price in this instance perhaps would have led you to a different conclusion had $2.00 for a pristeen ball worked out.

    ~Bill
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    • Profile picture of the author Aussie_Al
      On some of my e-commerce sites I have gradually raised my prices with no drop off in customers.

      The answer really lies in split testing your sales.

      Great story though Caleb and a good thread starter.!
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  • Profile picture of the author Mike Grant
    Your marketing strategy should never focus on price point. As a consultant, this is one of the biggest mistakes most brick and mortars make that hurt their bottom line.
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  • Profile picture of the author Fraggler
    (woah - there were no posts when I started writing. Hopefully this still flows with the thread.)
    Beating the competition on price is one way of creating demand but you have to realise you can't always 'go cheaper'. You have to take your profit into consideration.

    Sure, you were selling more balls but were you making more money? How much time did it take you to find those balls, clean them up, find people to sell them to? At the time you were pretty young and pocket money is more important when you have all the time in the world but in the business world time is money.

    Digital products can be a bit different: books mainly. Software and services on the other hand the larger number of sales can be detrimental if you don't have the profit margin to support them. Charging a bit more to get the same turnover from less customers can be a better choice time wise.

    You also have to consider how you want to be positioned in the market. Great value I personally think is the best balance. YOu want customers who are happy to pay the price they are for the product they are getting. Pricing low can train your customer into only buying cheap products. This is fine if you can crank up the product creation and continually find buyers for those new products but a premium product often finds premium buyers. These buyers still want value for money but they don't shop on price. This allows you to spend the time to create amazing products that never dissapoint.

    Apple is one of the best examples I can think of that don't create products based on price. They focus on creating a quality product that the market is willing to pay for. Sure, you can find other phones for cheaper but what are the profit margins like? Will they be around in the long run?

    The Plasma/LCD (and other consumer electronic products) is one market where competitors tried to use price to increase sales. This race to the bottom left the companies with the biggest bank balance sitting at the top. Many long running large companies with superior products failed in this race because quality become secondary and they couldn't maintain the profit margins.

    I think you should focus on offering value for money in a market you can compete with and create unique selling points that are solely based on price.
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    • Profile picture of the author Caleb Spilchen
      Hey

      Originally Posted by Fraggler View Post

      (woah - there were no posts when I started writing. Hopefully this still flows with the thread.)
      Beating the competition on price is one way of creating demand but you have to realise you can't always 'go cheaper'. You have to take your profit into consideration.

      Sure, you were selling more balls but were you making more money? How much time did it take you to find those balls, clean them up, find people to sell them to? At the time you were pretty young and pocket money is more important when you have all the time in the world but in the business world time is money.

      Digital products can be a bit different: books mainly. Software and services on the other hand the larger number of sales can be detrimental if you don't have the profit margin to support them. Charging a bit more to get the same turnover from less customers can be a better choice time wise.

      You also have to consider how you want to be positioned in the market. Great value I personally think is the best balance. YOu want customers who are happy to pay the price they are for the product they are getting. Pricing low can train your customer into only buying cheap products. This is fine if you can crank up the product creation and continually find buyers for those new products but a premium product often finds premium buyers. These buyers still want value for money but they don't shop on price. This allows you to spend the time to create amazing products that never dissapoint.

      Apple is one of the best examples I can think of that don't create products based on price. They focus on creating a quality product that the market is willing to pay for. Sure, you can find other phones for cheaper but what are the profit margins like? Will they be around in the long run?

      The Plasma/LCD (and other consumer electronic products) is one market where competitors tried to use price to increase sales. This race to the bottom left the companies with the biggest bank balance sitting at the top. Many long running large companies with superior products failed in this race because quality become secondary and they couldn't maintain the profit margins.

      I think you should focus on offering value for money in a market you can compete with and create unique selling points that are solely based on price.
      One of the points I meant to put across, and I think I "Sort of" did, was more about the VALUE For the $1. They knew they were getting a good deal. Not so much as JUST having the lowest price, but having the BEST value for the price that they pay.

      Caleb
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  • Profile picture of the author MaverickUK
    So you stole golf balls and sold them for a small fee? Or am I missing something lol.
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    • Profile picture of the author Caleb Spilchen
      Originally Posted by MaverickUK View Post

      So you stole golf balls and sold them for a small fee? Or am I missing something lol.
      It's not illegal to take golf balls out of a ditch dude.

      Caleb
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      • Profile picture of the author espe
        Originally Posted by Caleb Spilchen View Post

        It's not illegal to take golf balls out of a ditch dude.

        Caleb

        I dont think so.. but maybe you could have sold them at 2 dollars I mean it was still a great deal, you didnt even created them or manufactured them just got them from a ditch lol.
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        • Profile picture of the author Caleb Spilchen
          Originally Posted by espe View Post

          I dont think so.. but maybe you could have sold them at 2 dollars I mean it was still a great deal, you didnt even created them or manufactured them just got them from a ditch lol.
          I used to mark them up a bit, if I remember correctly. A dollar is really a guess of mine, I can't really remember.

          By the way, it's not a "Race to the bottom" That I was trying to describe. I was trying to go after being irresistable. I don't make a living selling stuff for a $1. I never did. I make a living selling stuff for a lot more money, and not being in a "Race to the bottom", but I try to create irresistable value - and thats what I felt this was an example of.

          Caleb
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  • Profile picture of the author George Tee
    My opinion is that decrease pricing is a good way to gain customers, provided if the customers know exactly what are the market prices and are price sensitive to it.

    When applying to digital products, it might not be the same. It depends on where you get your traffic from. For WSO, chances are the warriors know the price very well and to win them over, you can play with the pricing to gain the customers.

    But chances are, when you play with pricing to do so, you need strong backend to make tons of $$. Otherwise you may only be stuck to a certain level?
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  • Profile picture of the author George Tee
    My opinion is that decrease pricing is a good way to gain customers, provided if the customers know exactly what are the market prices and are price sensitive to it.

    When applying to digital products, it might not be the same. It depends on where you get your traffic from. For WSO, chances are the warriors know the price very well and to win them over, you can play with the pricing to gain the customers.

    But chances are, when you play with pricing to do so, you need strong backend to make tons of $$. Otherwise you may only be stuck to a certain level?
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  • Profile picture of the author Sparhawke
    It is a good plan, I would much rather sell 300 items at $7 than 50 at $10...
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    • Profile picture of the author ExRat
      Hi Sparhawke,

      Originally Posted by Sparhawke View Post

      It is a good plan, I would much rather sell 300 items at $7 than 50 at $10...
      With respect, this is possibly the same kind of short-sightedness as the lesson in the OP -

      I didn't so much mean as to say "race to the bottom" in price
      The key to long term profit online is often quoted as building a list of repeat buyers, in terms of the high cost of acquisition.

      If you are building that list, then a lower amount of sales to customers willing to pay a higher price is not always such a bad thing in the long term.
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  • Profile picture of the author davidtong
    I really enjoyed the story, and I won't exclusively say that price-war tactics doesn't work but let me put in my 2C based on my experience about price and buyer's mindset.

    Some Key Points

    1) Quality of competition - The assumption that $3 vs. $1 is flawed because you're comparing brand new vs. used. That's like "I'm sure I'll sell a 2010 BMW M5 easier because the 2011 M5 cost 20K more!"...
    2) Your profit margin requirements
    3) Perceived value of your product.

    With your example, you're basically selling, for the lack of a better word - junk with value. Junk being the fact that you have virtually no up-front cost other than to scavenge the said items. There's no difference between pro-grade golf balls and recycling beer bottles. You picked up things that others left behind to sell. Those beer bottles may fetch you a dime in recycling credit, but you don't get the beer, right?

    A lot of recyclers do the same thing with appliances, they scour for refs, washing machines, etc in dumpster lots and picks them up, do the required repairs and sell it for a profit.

    Stigma of Low Price

    Going for low prices indicate a couple of things for the most part:

    1) You have a really good acquisition process such as big discount from your suppliers, in your case, bad golfers slicing their balls.
    2) Your product is cheap (they are since they're used). Most pro-grade, soft-cover balls don't wear that well, a couple of bad hits can tear the jacket.
    3) Your competition is the pro-shop only, which sells brand new items at retail price. Now what if there's another kid in town doing the same thing and sells his scavenged golf balls for 80cents?

    Personal experience tells me that just like Apple, if you market and package things a certain way and target only your preferred demographics, they'll come to you REPEATEDLY even if you're priced higher than 90% of your competitors. A lot of people don't like CHEAP, price is not a main consideration unless they know there's little value to the product they'll purchase.

    Keeping price low sets a LIMIT on how high your margins can be and limits your profit potential unless you get more VOLUME...

    I understand that your example was merely for a kid looking to make extra bucks, and I HONESTLY admire youngsters who think that way and actually take action, but such tactics will not work long term unless you're like Walmart and have the leverage to play the volume game.

    My Case Study

    To give you an example, my partners and I own a chain of auto-detailing stores in the Philippines. Now the city is literally filled with car wash shops spaced less than 1KM apart. No exaggeration! You cannot go through a block without seeing a make-shift car wash around.

    They all work with the assumption that with such a high concentration of cars in the city, and the amount of dust/dirt that floats around, there will always be someone coming in for a wash.

    Practically all the shops back in the early 2000s started with a Php200/wash price point, then more and more shops popped up and today, the average rate drops to P80/wash!

    Factor in rent, labor, time, supplies, that's a crazy low margin to work with.

    Tons of these hole-in-the-wall stores closed down. Some thought about ADDING detailing services to increase income since detailing services, unlike car washes, charge in the hundreds, if not thousands per job.

    The funny thing was, they're still copying each other and trying to beat each other's DETAILING prices! The normal paint detail price started at around P2,000/car, then now it's down to P1,000/car, and even the bigger stores are doing the same thing!

    Our store started with one targeted goal, to be the only PROFESSIONAL DETAILING shop in the metro and car washes are merely "we have to do it anyway to render our main services".

    We offered detailing services at 30% higher price point than any shop out there, even our car washes rate are hovered around P200-P400/wash, for example, and for the last 5 years, we still do not have a direct competitor and our customers keep coming back despite our price increases.

    In my experience, selling quality and image is more profitable than operating on price wars alone. I strongly feel that customers who shop by price point only are low-value customers that you'll have a hard time retaining for future repeat sales. In short - short-term potentials only.

    You'll work so hard if you keep chasing volumes all the time, and when it comes to physical products, you're bound to hit a brick wall when someone finds a more efficient way to get volume orders (like Walmart, or a bigger scale - China) to beat you down.
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  • Profile picture of the author lacraiger
    its called lowballing the market... not a good strategy because it wont last...
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  • Profile picture of the author vok
    I don't tend to participate in pricing wars. I imagine it's great fun, but I like to keep prices high and over deliver on high value.
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  • Profile picture of the author GoldenGlovez
    OP having the lowest price is not the only way to guarantee better sales than your competitors. In fact, it can actually hurt you in the long run for multiple reasons. When it comes to the consumer you have many different types; people who want a deal, people who want quality and people who want both (as an example).

    There are many consumers who will look at a higher price tag as higher quality (Take Apple computers for example). Also, when it comes to online marketing and creating a list of consumers for your product; do you want people 50 people that will buy a $40 product or 25 people that will buy a $80 product? I will take the higher paying consumer any day. Instead of focusing on lowering prices people should focus on increasing quality.
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  • Profile picture of the author cardine
    I'm confused, where did you get all these Pro V1's from so that you could sell them?


    Also I think your lesson is wrong. I'm not allowed to post links yet, but Google 'How I doubled the price of my software product and sold ten times as many copies.' There is something called perceived value. When something costs more people assume it is better, and when something costs less people assume it is worse. In fact, if you offered many consumer two identical products that cost different prices, many consumers will choose the more expensive product because they assume it's better.
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    • Profile picture of the author Richard Van
      Originally Posted by cardine View Post

      I'm confused, where did you get all these Pro V1's from so that you could sell them?
      He said in the OP, he picked them up on his local golf course.

      I also think you miss the point. The golf balls cost $3 in the shops, he sells them for $1. How can he increase the percieved value of the golf ball?

      Or are you suggesting he sells the balls at $4 when they can buy them for less in the shops? Better still can you explain how you'd increase the perceived value of the golf ball so you could sell the same ball for more than they sell for in the shops?

      if you offered many consumer two identical products that cost different prices, many consumers will choose the more expensive product because they assume it's better.
      Ok, picture this. You just went to the golf club and bought some nice balls for 3 bucks. When you were playing golf, some 12 year old came up and said "hey mister, I see your using "whatever" golf balls. Wanna buy these for just $1"

      Are you saying you wouldn't because you'd assume the ones in the shop were better because they cost more even though you can see they're the same make?

      Strange.
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      • Profile picture of the author cardine
        Originally Posted by Richard Van View Post

        Ok, picture this. You just went to the golf club and bought some nice balls for 3 bucks. When you were playing golf, some 12 year old came up and said "hey mister, I see your using "whatever" golf balls. Wanna buy these for just $1"

        Are you saying you wouldn't because you'd assume the ones in the shop were better because they cost more even though you can see they're the same make?

        Strange.
        You're missing his point. He used that as an example, and then made the following conclusion:
        Ex. If everyone is selling a guide about "X Topic" for $9.95. Sell yours for $7, be the best deal on the marketplace. You'll get more sales... And you'll be the inresistable source for the best deal.

        His entire point was to always try to be the cheapest provider. Maybe it doesn't matter for pro v1 golf balls, but for almost everything else, especially a product that you create, it matters a lot.
        Let me put it this way. If somebody sells a way to make $2000/day for $7, you'd probably think 'if this guy makes $2000/day, why would he be selling his secrets for $7'? However if somebody sold a way to make $2000/day for $20,000, you might be more likely to believe that he will be giving away actual secrets.

        And plus, if somebody can up to me trying to sell ProV1 balls, the first thing I'd think is that he's either selling damaged balls (Titleist sells a ball called the 'x out', which are literally Pro V1's that were slightly damaged), or that they were counterfeit. Because it is so cheap, the first thing I'd think is 'this seems to good to be true, what's the catch?'
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        • Profile picture of the author Richard Van
          Originally Posted by cardine View Post

          You're missing his point. He used that as an example, and then made the following conclusion:
          Ex. If everyone is selling a guide about "X Topic" for $9.95. Sell yours for $7, be the best deal on the marketplace. You'll get more sales... And you'll be the inresistable source for the best deal.

          His entire point was to always try to be the cheapest provider. Maybe it doesn't matter for pro v1 golf balls, but for almost everything else, especially a product that you create, it matters a lot.

          And plus, if somebody can up to me trying to sell ProV1 balls, the first thing I'd think is that he's either selling damaged balls (Titleist sells a ball called the 'x out', which are literally Pro V1's that were slightly damaged), or that they were counterfeit.
          Thanks but I didn't miss any point Caleb made. I was just responding to your question...

          I'm confused, where did you get all these Pro V1's from so that you could sell them?
          I wrongly assumed that since you didn't know where he got the balls from you hadn't even read the OP properly.

          I was also making the point that some people would buy the cheaper balls. Most people could rather quickly see if a ball was damaged and I don't come across many golf ball counterfeiters between the ages of 10 and 12 on my local golf course.

          If somebody sells a way to make $2000/day for $7, you'd probably think 'if this guy makes $2000/day, why would he be selling his secrets for $7'? However if somebody sold a way to make $2000/day for $20,000, you might be more likely to believe that he will be giving away actual secrets
          Yes, you might. You might not though. That's my point. Some people like bargains, some people like cheap and some people look at the same course that's on sale for $7 on one site and $20,000 on another saite and pay the 20k.

          There's no rule here, you just test to see what works in whatever situation you're in.
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  • Profile picture of the author North Star
    Hi Caleb,

    I do agree that keeping prices low is very important but quality cannot be under estimated. I know plenty of cheap shops but i won't go and buy anything because the quality is so low. you had no over heads and 100% which meant you could vary on your price. It can work but only in certain industries.
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  • Profile picture of the author Crucible151
    When I was 16 or so I was big into trading cards. I would buy them off other kids for 50% or less of whatever I could sell them on eBay for. I was totally guilty of the "price war" thing too. Since, I decided that was the easiest, and best way to move product, and I was still making the mark up that I wanted.

    Though, usually they would be an auction. So, I would start the price below whatever the cheapest listing was for that particular item. The final price almost always ended up being higher than those original items I was trying to under cut though.

    I can see how price cutting devalues an industry. Which it would if I was selling a new product like the actual packs, but the individual cards had a big audience with a lot less competition. It was too time consuming, and too much inventory for the big pro stores to stock every individual card.
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  • Profile picture of the author Ansar Pasha
    Banned
    Awesome post Caleb!

    Just shows that entrepreneurs start young

    I also used to sell stuff from this auction site in NZ, buying stuff from Ebay. People used to pay fairly high prices for electronics and novelty items, so I acted as a "middleman". Anyway, these ideas continued to come in high school and eventually I gave the job of managing it to sister for $10 a day lol

    Ansar
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  • Profile picture of the author Aussie_Al
    Oh yeah Caleb - I forgot to mention - when I was growing up I was not allowed any where near the golf course - some kids had died being hit in the head by golf balls and my parents would have killed me if they heard I was anywhere near there!
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    • Profile picture of the author Caleb Spilchen
      Originally Posted by Aussie_Al View Post

      Oh yeah Caleb - I forgot to mention - when I was growing up I was not allowed any where near the golf course - some kids had died being hit in the head by golf balls and my parents would have killed me if they heard I was anywhere near there!
      Wow.

      Do they not yell FOUR in Australia?

      I might do a little story about competition too. One day, I actually met my "competition" while I was picking up balls. I can tell you, he didn't like that "Some kid" was stealing his business.

      Peace

      Caleb
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      Canadian Expat Living in Medellin, Colombia

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      • Profile picture of the author mattlaclear
        Originally Posted by Caleb Spilchen View Post

        Wow.

        Do they not yell FOUR in Australia?

        I might do a little story about competition too. One day, I actually met my "competition" while I was picking up balls. I can tell you, he didn't like that "Some kid" was stealing his business.

        Peace

        Caleb
        Actually it's: Fore

        As in beware!
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  • Profile picture of the author yukon
    Banned
    Bottom line is, OP had a 100% markup on those golf balls.

    Before anyone says "Well yea, but his time is also worth money", you can look at it another way. I'm sure Caleb got a decent workout collecting golf balls considering the perimeter of a golf course would translate into a lot of walking (exercise).

    So, he got free exercise while earning money from a 100% markup, not a bad return regardless of the individual golf ball price.
    Signature
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  • Profile picture of the author magnates
    Originally Posted by Mike Grant View Post

    Your marketing strategy should never focus on price point. As a consultant, this is one of the biggest mistakes most brick and mortars make that hurt their bottom line.
    I couldn't agree more . You lower your prices if you don't know what you are worth .

    If you have something that works like a miracle , would you sell for it pennies?


    How are you suppose to be rich if you selling at $1 . You might not get a lot of refunds but it is just a lot of work selling a million $1 product compared to forurty $25k product and giving the best value for their

    What is the point of being an expert in your niche if you are only going to compete with beginners on price ?
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  • Profile picture of the author JamesGw
    You can't always have lower prices, especially for physical products. You were able to offer lower prices on the golf balls because you essentially stole them / got them for free. This isn't the case in the real world. Sure, you can sell info guides for less, but that's about it. And believe me, cutting into your price margins to beat out your competition can definitely work (look at Walmart), BUT that's not always the best way to go about things.

    I think it's better to offer a very good service and charge a crapload for it. This is called prestige pricing and allows you to make more money with less work overall. It's better for smaller businesses IMO.
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  • Profile picture of the author mattlaclear
    If I was the owner of the course I would of worked a deal out with you to buy them all from you. Would f been a no brainer for them to work like that with you. That way they could o resold them for $2 and still walk away with a profit.
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