Advertisement
Help Keep Boards Alive. Support us by going ad free today. See here: https://subscriptions.boards.ie/.
https://www.boards.ie/group/1878-subscribers-forum

Private Group for paid up members of Boards.ie. Join the club.
Hi all, please see this major site announcement: https://www.boards.ie/discussion/2058427594/boards-ie-2026

Margin for golf/sports stores online and offline

  • 14-09-2012 12:11PM
    #1
    kiers47
    Closed Accounts Posts: 3,564 ✭✭✭


    Was just wondering. Does anyone have any insight into what margins are on equipment and clothing for companies online and offline.

    I think online companies like Amazon/Pixmania work on roughly a 20% margin (obviously depending on the product)
    My guestimate is that offline sports stores work on perhaps a 30-40% margin. But just a guess.

    But just wondering what it would be for golfing gear and if anyone had any insider info on this?

    Just curious really!!


Comments

  • #2
    rrpc
    Closed Accounts Posts: 9,244 ✭✭✭rrpc


    kiers47 wrote: »
    Was just wondering. Does anyone have any insight into what margins are on equipment and clothing for companies online and offline.

    I think online companies like Amazon/Pixmania work on roughly a 20% margin (obviously depending on the product)
    My guestimate is that offline sports stores work on perhaps a 30-40% margin. But just a guess.

    But just wondering what it would be for golfing gear and if anyone had any insider info on this?

    Just curious really!!
    It's not a straight across the board margin with retailers. Certain products will have higher margins than others and there will be loss-leaders (really items with a small margin) and others with huge margins.

    I know that some products (especially the cheaper ones) can carry many hundreds of precent mark ups. Think cables such as CAT5 patch leads or HDMI cables etc. which will be typically bought for prices in cents and sold for euros!

    Nobody in retail will have an across the board 20% margin, they wouldn't stay in business long!

    Online retailers like Amazon and Pixmania are in reality drop-shops; they don't carry stock, but just place an order to their suppliers when they get one from an online customer. They use very sophisticated software which can automatically evaluate supplier prices and stock levels before an order is placed.


  • #3
    kiers47
    Closed Accounts Posts: 3,564 ✭✭✭kiers47


    rrpc wrote: »
    It's not a straight across the board margin with retailers. Certain products will have higher margins than others and there will be loss-leaders (really items with a small margin) and others with huge margins.

    I know that some products (especially the cheaper ones) can carry many hundreds of precent mark ups. Think cables such as CAT5 patch leads or HDMI cables etc. which will be typically bought for prices in cents and sold for euros!

    Nobody in retail will have an across the board 20% margin, they wouldn't stay in business long!

    Online retailers like Amazon and Pixmania are in reality drop-shops; they don't carry stock, but just place an order to their suppliers when they get one from an online customer. They use very sophisticated software which can automatically evaluate supplier prices and stock levels before an order is placed.


    I understand it is not as easy as having the same margin across the board was just a general example.

    I also understand that amazon are drop shops.

    Was just wondering what the mark up was on clubs/balls etc..


  • #4
    G1032
    Registered Users, Registered Users 2 Posts: 7,627 ✭✭✭G1032


    kiers47 wrote: »
    I understand it is not as easy as having the same margin across the board was just a general example.

    I also understand that amazon are drop shops.

    Was just wondering what the mark up was on clubs/balls etc..


    I've heard from before from a friend who works in a golf shop that the mark up on sets of irons is huge. 150 - 200%**
    On the other hand a golf store isn't going to sell a set of irons everyday.

    Not sure what the mark up on balls are.

    They'd also make plenty money on reselling drivers/3 woods etc. They get recycled quite a bit.

    ** - Before anyone goes off on one demanding evidence of the mark up claims, I don't have any actual documented proof. Just something I heard in a casual conversation with a guy working in a golf shop.


  • #5
    stringy
    Registered Users, Registered Users 2 Posts: 652 ✭✭✭stringy


    having worked in a golf shop briefly, I can say that they make their money on clothes and shoes, massive mark up.

    Equipment doesn't have a very high mark up. E.g. the latest driver has about a 20-25% mark up.

    however proVs are sold just above cost.


  • #6
    Golfgraffix
    Registered Users, Registered Users 2 Posts: 1,938 ✭✭✭Golfgraffix


    Markup or Margin, two very different things. Online retailers will have a much better margin as it accounts for overheads which will obviously be lowers than stores


  • Advertisement
  • #7
    rrpc
    Closed Accounts Posts: 9,244 ✭✭✭rrpc


    Golfgraffix wrote: »
    Markup or Margin, two very different things. Online retailers will have a much better margin as it accounts for overheads which will obviously be lowers than stores
    Not in fact correct. Markup is the percentage that is applied to the cost price of an item to give the sales price, margin is the percentage of the selling price that is profit.

    Therefore, a 100% markup is the same as a 50% margin.

    There's also gross margin and net margin, net margin is what you described above, gross margin is what I'm talking about and since every retailer will have different cost bases, gross margin (or markup) is the best comparative.


Advertisement
Advertisement