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Date Posted: 10:14:33 06/20/00 Tue
Author: Peter
Subject: Re: SA Marketing
In reply to: Doug 's message, "Re: SA Marketing" on 07:49:02 06/20/00 Tue

> Peter, tell me more about Snake Eyes. They appear to
> be more of a components company, now. But, they sold
> fully assembled clubs at one time, didn't they?

Snake Eyes originally came out with forged blades ("Forged by Smith & Wesson"). Beautiful clubs.

I don't know what went wrong but they could not make a go of it. I don't know if they went chapter 11 or not, but the next thing I see is Golfsmith selling Snake Eyes components but not the forged (except for wedges) but a cast clubhead. Part of the Golfsmith pitch to clubmakers was that they could now sell custom assembled clubs with a recognizable (and upscale) brand.

I agree that a company needs to keep a single 'type' focus to be successful.

I somewhat agree about NG clubs vs. others. For me it is less an issue of price vs. an issue of preference. I play forged blades and have no concern about performance problems. I have lots of golf clubs (too many) including a set of 'test' 5 irons covering many brands (I have a NG Corp 3 wood but no irons). Still have not found anything I prefer to my Golfsmith and Wilson FG-51 forged blades. Including a set of Mizuno MP29s I have.

I think the KEY to NG being successful as a club company is the HOOK of the need for specialized equipment to go with the technique. I think that is why the patent angle is played up though I have my doubts about whether some of their clubs actually meet the patent specs despite being stamped with the patent number.

If you view their other activities as efforts to develop well qualified prospects for a product with possibly 50-70% gross margin and these other aspects are self supporting (through fees...), then the business model is not so bad.

Peter

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