Quality means You Dont Get Callaway Golf Clubs Cheap
Callaway golf clubs are the most popular brand of golfing equipment in the U.S., gaining greater sales in the annual $3 billion market than famous competitors like Macgregor, Spalding and Wilson. Additionally, Callaway golf clubs lay claim to the single most popular golf club on the planet – the “Big Bertha” driver. Introduced to the golfing world in the early 90s, this revolutionary club helped Callaway grow quickly. The company now owns one-third of the U.S. golf equipment market far outselling it nearest competitor. Callaway golf clubs are not the only items the company sells. Callaway also manufactures golf balls and licenses apparel through clothing company Ashworth, Inc.
The rise to become the premier golf equipment manufacturer started when company founder Ely Callaway, semi-retired at the age of 60, bought a small golf equipment company in California name Hickory Stick. So, in 1984, Callaway started this small company on the road toward becoming the most successful golf business in America. With a modest $400,000 investment, Callaway took charge of the fledgling company himself, devising a strategy combining new research toward development of new and innovative products.
The first was a uniquely designed item that removed a great deal of club neck while extending the shaft through the clubhead. Christened the S2H2 – Short Straight Hollow Hosel, Callaway’s new design produced outstanding sales results. Golfers throughout the country responded favorably to the heavy-weighted clubhead with a low center of gravity. Sales went through the roof. The company hit $5 million in 1988 and a year later doubled to $10.5 million. Sales continue to skyrocket for the company, doubling once again in 199o and by 1991 the company recorded $54.7 million in sales – 150 percent increase.
This was just the beginning.
In 1991, Callaway introduced his oversized driver dubbed “Big Bertha,” adding to the rising fame of Callaway golf clubs. The driver took its name from a famous World War I artillery gun manufactured by the German armament company Krupp. That gun was named for the company heiress Berth Krupp.
Callaway’s innovative driver design distributed weight around the entire perimeter of the head increasing the “sweet spot” area that allowed average golfers more distance and better control while affording a little striking “forgiveness.” Sales of the new club were phenomenal as golfers throughout the country rushed to add this innovative driver to their bags.
In 1992, Callaway took his company public and with stock sales providing expansion capital, he set out on a rapidly growing phase of research and new product development that took a $20 per share offering to $54 within a year. With sales passing $225 million in 1993, Callaway shot to the No. 1 golf equipment revenue industry leader.
Following on the success of the Big Bertha driver, Callaway introduced a completely new line of irons employing the same technological innovations for which the woods were acclaimed. The clubs weren’t cheap, either. In fact, you don’t often find Callaway golf clubs cheap, and these were about 20 percent more expensive than their nearest premium golf club competitor. The price tag for a set of nine irons and three woods – at a suggested retail sting of $2,300 – didn’t repel the loyal horde of golfing consumers who happily laid down a small investment to own Callaway golf clubs. So much so that by the end of ’94, company sales shot up to $449 million. People don’t care to get Callaway golf clubs cheap. They’re worth the price tag.
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