Post by Richie3Jack on Oct 10, 2013 12:49:28 GMT -5
Article on Scratch Golf and their new headquarters in Michigan by MyGolfSpy.
www.mygolfspy.com/scratch-golf-10-years-later/
There were some other things I wished the article had touched upon, like Scratch's attempt to get a forging house in Chicago in order to specialize orders more quickly. What happened? Why did that exactly fail? Will they make future attempts to getting supplied by a US forging house?
The move to Michigan is interesting. IIRC, Tennessee gives pretty handsome tax breaks to businesses. I know Michigan is hurting for business so I wonder if the combination of moving back home for Ari Techner was the driving force or perhaps the state of Michigan also gave some tax breaks and was the lower rent enough (I'm assuming) forced them to go with the idea to move to Michigan.
The golf equipment industry is a difficult one to be in if you're not a major OEM. A few years ago the component companies were rising in popularity because of the ability to customize. The OEM's changed that by offering more customization and using gimmicks that the public perceived as 'custom fitting.' That perception narrowed the gap between what a company like Taylor Made could offer for a real custom fitting than what KZG or Wishon could offer in a custom fitting.
In the end, the attempt to go to big box retail may work out for them. Sure they have gotten away from it, but it helps get the name out there. It's just a question if the cost was worth the possible new customers it brought in.
It appears to me that if you want to start a club company, the safest way is to start off with putters and wedges. But the only way to become a major player is to get into the driver market. The issue is that has the highest risk if you enter that market. I enjoyed the article, I just wish they would have delved more into the aspect of setbacks the little guys have and what has to be done to move a little guy into a major OEM.
3JACK
www.mygolfspy.com/scratch-golf-10-years-later/
There were some other things I wished the article had touched upon, like Scratch's attempt to get a forging house in Chicago in order to specialize orders more quickly. What happened? Why did that exactly fail? Will they make future attempts to getting supplied by a US forging house?
The move to Michigan is interesting. IIRC, Tennessee gives pretty handsome tax breaks to businesses. I know Michigan is hurting for business so I wonder if the combination of moving back home for Ari Techner was the driving force or perhaps the state of Michigan also gave some tax breaks and was the lower rent enough (I'm assuming) forced them to go with the idea to move to Michigan.
The golf equipment industry is a difficult one to be in if you're not a major OEM. A few years ago the component companies were rising in popularity because of the ability to customize. The OEM's changed that by offering more customization and using gimmicks that the public perceived as 'custom fitting.' That perception narrowed the gap between what a company like Taylor Made could offer for a real custom fitting than what KZG or Wishon could offer in a custom fitting.
In the end, the attempt to go to big box retail may work out for them. Sure they have gotten away from it, but it helps get the name out there. It's just a question if the cost was worth the possible new customers it brought in.
It appears to me that if you want to start a club company, the safest way is to start off with putters and wedges. But the only way to become a major player is to get into the driver market. The issue is that has the highest risk if you enter that market. I enjoyed the article, I just wish they would have delved more into the aspect of setbacks the little guys have and what has to be done to move a little guy into a major OEM.
3JACK
