As you know we set target prices to maintain a
As you know, we set target prices to maintain a gross margin on sales of 35 percent. On some products, such as our drivers, we have been able to achieve the target price. We have been able to achieve higher prices on our putters than a target 35 percent gross margin would dictate. But our wedges are a totally different story.
Our factory is among the most efficient in the world. I think that some foreign companies are dumping wedges in the U. S. market, driving down prices and unit sales. We’ve been reluctant to further cut our prices for fear of what this will do to our gross margins. Fortunately, we’ve been able to offset the decline in sales of wedges by significantly raising the price of our put-ters. We were pleasantly surprised when our customers readily accepted the price increases of our putters, and we haven’t experienced much reaction from our competitors on the putter price increases.

What advice would you offer JoeBell?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help