Ping cancels accounts with local golf stores(For military discounts)

Augusta Chronicle ^ | 09-28-06 | By David Westin

[rollo tomasi]

Think how many people on here would be going out and buying Ping clubs if the shops were offering discounts to gay people and Ping told them to stop.

If there was any definition of a straw man, this would be it. First, how would a sales person know who was a homosexual? Second, an active duty military golfer would have a military I.D.

If Ping wants this so be it, to me in a time of war it would be appropriate for people to help the military people out. Ping has every right but I guess Ping does not understand the goodwill of this store owner.

[Glenn]

to me in a time of war it would be appropriate for people to help the military people out

I come from a long line of career military men who made pin money buying cheap and selling just a little cheap from a few continents. Is it really such a big deal they can't buy clubs to resell in Seoul?

[untrained skeptic]

Good for these guys (the shop owners), F Ping, and F the Narc who notified Ping.

I suspect customers had to send in receipts when requesting some kind of warranty coverage. If they've decided to check those receipts against their pricing policy, the discounts would become obvious without someone being a narc.

However, I agree with the sentiment.

[untrained skeptic]

Karsten Manufacturing (Ping) also appears to make some other products according to Yahoo Finance.

Karsten also supplies parts for the Patriot missile and to the helicopter industry.

http://biz.yahoo.com/ic/46/46982.html

This seems like a foolish decision by a company that supplies materials to the defense industry.

I suspect this is going to come back an bite them hard.

[Dixie Yooper]

"Cobra - better and cheaper"

Cheaper anyway. Greg Norman, former owner doesn't even play them anymore. Ping, Cobra and Callaway have, for the last 25 years, been the leaders of "fad equipment golf". Back in the late 1930's, the Golf Gods handed down the perfect iron design to a few chosen companys which are Wilson, MacGreger, Acushnet(Titlest) and Spaulding. Today 95% of the tour players around the world, still use these blade style forged steel irons from these manufacturers or a few others like Mizuno or Hogan. The players that don't use them are paid handsomely to use a cast iron club like Ping or Cobra. Cast iron is best used as a frying pan.

[MMcC]

I'm sure I'm going to get creamed for this, but Ping has every right to do this, and they have been doing it for years. It makes a nice sob story that the guy discounted to military, but the bottom line is he broke his agreement with Ping.

Whether or not you agree with their decision is one thing, but they have every right to make it and they have been VERY successful with it so far. Ping is a private company with the most loyal customers in the industry... this isn't going to hurt them at all.

[HIDEK6]

This will cost Ping far more in the negative publicity it generates than the piddly amount they were losing in the discounts to military.

Ping was losing zero money. The retailer was discounting his profit.

Ping gets their money when the store pays their invoice.

[tfecw]

"I suspect customers had to send in receipts when requesting some kind of warranty coverage."

Ahh i see, good call!

[MortMan]

This will cost Ping far more in the negative publicity it generates than the piddly amount they were losing in the discounts to military.

That's the screwy part... Ping didn't lose any money. The store buys at wholesale from Ping, and subsequently owns the merchandise. The store then discounts 10% off of the retail price, which cuts into the store's profit.

Ping loses no money, unless they get stupid and pull the accounts.

Of course, they got stupid (and apparently got stuck)!

[toddlintown]

I think you're right. The military aspect of this is a red herring.

[CPOSharky]

Ping putter, 30 years. Wadded it up and launched it into the back 40.

[gumboyaya]

Blades - but first you have to hit them. Thats why 95% of us do not use them something to do with the sweet spot.

[Bloody Sam Roberts]

I'm sure I'm going to get creamed for this, but Ping has every right to do this, and they have been doing it for years. It makes a nice sob story that the guy discounted to military, but the bottom line is he broke his agreement with Ping.

I agree. That was my first reaction too. Ping's action has nothing to do with discounts to military personnel.
It has everything to do with discounts that are in conflict with Ping's stated policy.

[SeeRushToldU_So]

Ping putter, 30 years. Wadded it up and launched it into the back 40.

I hope you called Ping after you pitched your putter.

[Phsstpok]

No, restricting the prices that a reseller can sell a product that they have already purchased from the manufacturer or wholesaler is illegal price fixing.

See the court cases between 42nd Street Photo and IBM and Apple in the mid 80s. IBM and Apple lost, though 42nd St. photo ended up getting nailed for criminal violations in some of the scams they put together to get around IBM and Apples other pricing set ups (both had their own discounts to sell to schools, 42nd st photo set up a Hassidic "school" with no students, but tons of Apple and IBM PCs at the discount and then resold them through their stores).

The key is that the manufacturer had sold the items already. They can control the price only if they retain ownership until the retail sale. That's why it has to be and unwritten agreement. It's illegal.

[Phsstpok]

somehow my reply to you got posted to me as a response to my original message, not your post.

Please see my post 55

This is how it was taught to me at B school back in the early 70s and my memory of the court rulings in the 80s.  It may have changed since, but I don't think so. 

[over3Owithabrain]

It has everything to do with discounts that are in conflict with Ping's stated policy.

It's their policy and they can do what they want. But if they cannot bend that policy for the military, without whose protection they wouldn't have a business, then we can vote with our wallet and our feet. No Ping for me and anyone I can convince!

[HamiltonJay]

A traitor PING....

Gotta love it... They are free to do it, but the publicity backlash from this is going to hurt them far more than their desire to ensure that their products NEVER sell at a discount....

Gotta maintain that mythos that we are actually something more than a Golf club....

Idiots.

[Bloody Sam Roberts]

But if they cannot bend that policy for the military, without whose protection they wouldn't have a business, then we can vote with our wallet and our feet. No Ping for me and anyone I can convince!

I agree with that as well.

Reminds me of the old bureaucratic adage, "There's no reason for it. It's just our policy."

[over3Owithabrain]

Yeah, I worked for some big banks in my younger days. I HATED when I knew I could do something simple for a customer that would help them and also increase their loyalty, but was restrained by "policy".

That's why I work for myself now and am much freer and happier!