Credit Crunch - Survive Or Thrive - Second Hand Golf Balls

In a market place with both increasing power to the consumer thanks to the internet

combined with economic instability, it should not come as any surprise to hear consumers are starting to make smarter decisions about spending their money. As the credit crunch sets in, businesses willing to diversify their product offerings are able to come out in front.

Some businesses have been able to see the current conditions as an opportunity. We are already seeing business product offerings change shape and form, to try and appeal to a smarter and less confident consumer. Many have coined this latest credit crunch as a time or either survive or thrive. A time or risk taking and business take overs, some companies will prosper and others will not be able to adapt to the new forces of what this credit crunch produces.

Opportunities? New markets? How does a credit crunch enable this? A good example on how this is taking form is increased number of companies selling second hand golf balls. All golfers will know the great feeling they get when they find a nice ball in the long rough or in the trees. It gives a sense of accomplishment. Most golfers will reuse this ball and be quite happy that they are playing with a free ball! Many regular weekly golfers will appreciate the cost of their game when they can lose 5 or 6 golf balls a round. Every golfer has a story of going to great lengths on the golf course, climbing through jungles or taking their shoes and socks off to fetch their ball. Who blames them when a top a the line Titleist Pro V can cost up to $10AUS in some pro shops.

As people are increasingly trying to save money, the demand for second hand golf balls has grown substantially. Many companies now sell second hand golf balls. This business model has a few variations, but one interesting model is where a company pays an annual fee to 'own' the rights to water hazards at a particular golf club. The partner company is allowed to dive for balls, usually scuba style, and collect the balls all year long. Increased water hazard courses can receive over $10,000 annually for the contract.

Typically higher income courses will attract bigger dive fees as the quality of golf balls will usually be better and have more return on investment. A company will then on-sell these balls, usually giving them a ball grading. Golfers have a wide range of needs for their golf balls, some prefer only perfect condition whereas others really don't care what color or condition their ball is in. Companies can grade their balls standard, near mint, mint and practice. Usually mint balls are perfect condition and can not be distinguished between a brand new ball.

Many second hand golf balls are basically brand new. Many golfers often cringe when they pull out a new ball only to hit it straight into the water. Mint second hand golf balls can often be 40% of some recommended retail prices for a product that looks and performs like brand new.

This is why Second hand golf balls are becoming more popular. Online sales mean that margins and costs are now less, and the consumer is starting to get a better deal. In the US, 4.6 million golfers played over 25 rounds in a year. Used golf balls are certainly not a small market. Business are starting to take advantage of the latest credit crunch and we are seeing more ebay stores and online businesses sell second hand golf balls. The demand is certainly visible with constant bids on all leading brand golf balls.

This is just one market that will be able to thrive in a volatile and uncertain market. There will be countless others.

by: Dave Smith

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