Manufacturer Perspective
Inflation Impacts Golf Shops
Like all retail markets, the golf industry has seen inflation drive up price points, though there might be less sticker shock because premium brand golf shirts long ago crossed the three-digit retail price threshold, according to Nicholson.
“I think consumers associate pricing with quality, and most of our members are willing to pay a higher price for brands they are familiar with,” he says. “It goes without saying, however, that it’s important to provide a balance of price points and products in the shop to appeal to all consumers.”
Wild Rock Golf Club at the Wilderness Resort in Wisconsin Dells, Wisconsin, finished the 2024 season with record sales, and PGA of America Director of Golf Pat Stein expects to raise those another 5 percent in 2025. Stein says the spring lines he has seen so far indicate a departure from bold prints toward more conservative looks, and customers willing to spend $100 on a shirt want to be able to wear it to for multiple activities beyond golf.
“I think people still are willing to pay for quality but I’m starting to see some push back on pricing,” he says. “I think people are starting to question if they really need to pay $100 for a quality polo, or if a $100 price tag makes it a quality polo.”
Costs have gone up dramatically at Philadelphia Cricket Club, according to Smith, who says while his margins haven’t increased, customers are paying significantly more for the same product than they did a few years ago.
“Unfortunately, inflation has hit golf shops with a vengeance,” he says. “We’re very careful about pushing it too far, as we don’t believe our customers have infinite price elasticity. While we selectively dabble in some higher-priced stuff – cashmere, for example – our bread and butter is to stick with traditional items.”
At the same time, Gates says Interlachen members appreciate quality and are often willing to invest in higher-end products when they see the value in craftsmanship, performance and longevity. In the last five years, she has noticed a decrease in price sensitivity, especially when the shop brings in premium products that align with member standards. For example, innovative technology in hard goods has been a major draw, and she is also seeing strong demand for exclusive apparel and accessories.
“Categories with noticeably higher price points – such as Dormie headcovers, KJUS layering for men and women, leather backpacks and travel gear from Links & Kings and Hudson Sutler, cashmere hoodies and crocodile belts from w.kleinberg – have performed exceptionally well,” Gates adds. “We feel this success demonstrates that demand remains strong when the quality is clear.”