Equipment

Wedging a new path: Hopkins Golf VP on the company’s direction

Published

11 years ago

Apr 24, 2015

A few things Michael Breed said when I spoke with him got me thinking (dangerous, I know).

Golf Channel’s resident swing-fixer suggested all vendors are going to follow Hopkins Golf’s lead and sell primarily via the internet and we’ll see an environment of “direct buy across the board.” He felt the approach would be particularly effective with millennials and highlighted the fact that customization and a bevy of options will be the order of the day.

I spoke with Tim Walsh, Vice President of Sales for Hopkins, about Breed’s comments and was surprised to find out the company is presently shifting sales from online-only to the brick-and-mortar world of select pro shops and high-end distributors. And while sales through the company’s website will remain a key component, the approach was only meant to be the beginning of Hopkins’ sales strategy, not its totality.

Check out my conversation with Walsh below. Topics are in bold with Walsh’s replies beneath.

Greg Hopkins’ goal at the beginning

[Greg Hopkins] wanted to establish the company online first and then go to retail. He didn’t want to have the golf professional and the retailers pioneer the brand…a lot of advertising on the Golf Channel. Vijay Singh…he got a lot of his fellow players using the product. And he [Hopkins] did a great job: He sold 20,000 wedges in 15 months.

Vijay Singh’s 52-degree Hopkins wedge with a Heel Grind.

Greg took a unique approach. There really wasn’t anything unique available to the consumer as far as tour grinds and things like that. Most companies had three bounce offerings and that was it. So when Greg came out with this seven-grind system…everyone else took note.

The company’s new sales strategy, targets

We were looking at the challenges the golf retailer and the independent professional faced, and we wanted to address those challenges. And for us, it came down to three things…overdistribution of product…short life cycles…and shrinking margins.

We’re just going to be available in the green grass channels and select independent retailers. It’s kind of the same model you see with the high-end ski companies. We want to have a high-end, premium line and go head-to-head with top companies. We’re hoping to become the No. 2 player within the next 24 months, and we think that can happen based on what’s happening with some of the other companies in the wedge category.

We have all the key retailers now and some of the top golf courses in the country. We have a tight distribution model…life cycles are going to be similar to Titleist…two-to-three years.

And then on the margins side, this is important: If you look at what’s happening in golf, a lot of the big companies are operating in the red right now, and it’s very difficult for them to get out of it. So what they’re having to do is shrink the margins to the retailers, and they’re tightening up commissions for the reps.

Our model is very different. Greg basically knocked out a major layer. Our assembly plant is in the [Mira Loma UPS Distribution Center]. It’s a very large, beautiful tour department inside that facility. All our engraving machines are there. We have 15 UPS employees trained to build our clubs. What’s cool about that is, if on a day we only need 12 employees, the other three have duties within the building, so we only pay for the time they spend building our clubs. And when we go into the off-season, we don’t have to lay anybody off. And when we go in-season, we don’t have to gear up. So at the end of the day, our margins aren’t 45 points, which is the average for the larger companies, we’re over 70 percent. That enables us to give that back to our golf professionals and our retailers when everybody else is going in the opposite direction.

When Greg started originally, it was strictly online. Now that we’ve shifted to this new model, we’re going to have probably less than 15 percent of our business being online. But that portion of our business allows us to give…retailers those high margins.

The golf professional is really important to our success going forward. I launched a program just in the last couple of months where we’re partnering with every one of the PGA sections, and we’re going to donate three percent back to whatever initiative they choose…most of its going to be junior golf driven.

And it’s a boutique brand where not everyone’s going to have it. There’s nothing more frustrating to a golf professional than when someone comes in to demo their product and two days later they show up with clubs they bought at a big box.

How things will look at the retail level

At the retail level, we wanted to simplify this whole process. When a customer comes in and they look at all these different bounces and grinds, they don’t know what they’re doing and the sales associates are confused as well. So when you see our product in the shop, you’ll see a sole sticker…it’ll say exactly what the grind is, and then there’s a brief description of what that grind does. Then we created a display, and it’s strictly an informational display…with shots of each of the seven grinds with more of an in-depth overview of the grinds. So the customers can look at it an fit themselves into the right grind.

And we’re the only company that’s going to have a 30-day guarantee on the fit in the stores, not just online. It’s not on the shoulders of the golf professional at retail…we’ll take it back and we’ll send out the right one.

Grinds for all?

98 percent of golfers have never tried anything beyond a standard grind. And when they do, it can be game-changing, because the majority of golfers need more effective bounce. And we have some offerings that nobody else has. Our number-one SKU on the Champions Tour is the 60 Wide. Kenny Perry has used it…Bernard Langer…that’s the grind for anyone north of a 10 handicap. It makes it so easy to get out of the sand and the thick rough.

The issue in the past has been, those types of wedges are so ugly, you wouldn’t even put it in your bag…whether it’s an Alien or a Sure Out. But this one’s beautiful, and it’s really kind of taken on a life of its own.

When you look at what’s happened in drivers over the last few years…most golfers are playing too little loft and now they’re realizing it because TaylorMade and other have done a nice job of educating the customers…the same thing holds true in getting to the right grind…it really can be a game changer.

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Ben Alberstadt

Ben Alberstadt is the Editor-in-Chief at GolfWRX, where he’s led editorial direction and gear coverage since 2018. He first joined the site as a freelance writer in 2012 after years spent working in pro shops and bag rooms at both public and private golf courses, experiences that laid the foundation for his deep knowledge of equipment and all facets of this maddening game. Based in Philadelphia, Ben’s byline has also appeared on PGATour.com, Bleacher Report...and across numerous PGA DFS and fantasy golf platforms. Off the course, Ben is a committed cat rescuer and, of course, a passionate Philadelphia sports fan. Follow him on Instagram @benalberstadt.

19 Comments

C Masty

Apr 30, 2015 at 4:27 pm

No Way Retail Channel was ever in the original plan. BS.

It’s a hail mary for revenues.

Reply Report comment
TT X

Apr 29, 2015 at 1:49 pm

No chance I’m buying that was his goal the entire time.

Reply Report comment
tbag

Apr 28, 2015 at 11:24 pm

Its sounds like a great plan. will offer options to average golfer. More of us than the pro, scratch players. I think it will be a great orportunity going forward.

Reply Report comment
thomas Bagwell

Apr 28, 2015 at 11:20 pm

How to order them, need help understanding different offerings. Contact info please

Reply Report comment
Ping Rat

Apr 28, 2015 at 7:15 pm

Yea hopkins is cutting edge with their grinds……Ping has only been doing this for years in their WRX department.

Reply Report comment
Dan

Apr 26, 2015 at 12:00 am

I have a simple solution for Hopkins to sell more club: the guy in your tv ads, take off that ugly, grandpa sweater vest. It makes your company look like a bunch of dated geezers. As a company selling a product, you want people to feel you are cutting edge, this dates you big time even if your co. is new

Reply Report comment
J

Apr 25, 2015 at 7:32 pm

Meh. Still Golf clubs put together by UPS. Assemble wedge, sort mail, repeat. No thanks. That is in no way, shape, or form the ” Tour Van ” experience he advertises.

Reply Report comment
- Ben
  
  Apr 26, 2015 at 3:31 pm
  
  Idk if you have a predisposition need to hate Hopkins or if you just hate improvement. But Hopkins partnered with UPS so that they could operate inside of their main sorting facility. This allows Hopkins to produce its components in separate locations but assemble their finished goods in the UPS facility. This essentially cuts out the middle man or the wholesaler from the products life cycle and allows for faster deliveries/returns. All of this means Hopkins is spending less money per club while maintaining the same level of quality. Meaning a lower price point for customers with the same quality standard. Educate yourself before you form an opinion.
  
  Reply Report comment
  - J
    
    Apr 27, 2015 at 12:41 am
    
    My opinion was fact. (A) Put together by UPS. (B) His marketing BS has been the ” Tour Van ” experience.
    
    If my tone indicates negativity when speaking facts, perhaps the ” experience ” is negative.
    
    Again, No Thanks of part time club builders, pre-ordered/ bulk ground heads, and Hopkins blatant BS calling any of it a ” Tour Van ” experience.
    
    By all means, continue to be condescending because I spoke facts. I’m sure Hopkins appreciates someone with your maturity level out putting your personal ” Stamp ” on the product and the experience.
    
    ” Educate myself ”
    
    Learn how to read.
    
    Reply Report comment
    - Carl
      
      Apr 27, 2015 at 12:32 pm
      
      why do you assume that a UPS employee is any less skilled than some guy/gal at titleist, taylor made or callaway? Do you really think bob vokey builds your wedge over at titleist.
      
      I have seen Titleist clubs show up 4 degrees off for lie angle
      Taylore Made clubs with 3 more degrees of loft than stamped
      
      Reply Report comment
The Pro

Apr 25, 2015 at 2:44 pm

HOPKINS is a Loser, wedges will never fly

Reply Report comment
- Jimmeh
  
  Apr 26, 2015 at 5:25 pm
  
  Have you tried them? I had a go with them yesterday at the Carlsbad spring demo day. Great fun playing about with all the grinds
  
  Reply Report comment
  - The ball
    
    Apr 29, 2015 at 11:19 am
    
    Well of course they are good clubs they are practically Cleveland wedges. From every perspective they look like complete copies. I wouldn’t be surprised if he took some files with him when he left Cleveland…
    
    Reply Report comment
Walter Pendleton

Apr 25, 2015 at 1:55 pm

Hopkin’s on-line webpage marketing program will continue to grow market share. The ex-CEO of G.E. Jack Welch once said, “it’s the business executive that can see around the corners of their industry that will become successful in tomorrow’s markets.” I like The Hopkins Team’s marketing strategy…it’s innovative and unique club design, cost saving logistics & manufacturing, a return to green-grass limited distribution and a strong web and advertising budget to promote to hi-end users that can afford to buyer their boutique wedges. It’s the wave of the future for golf start-ups. Big box manufacturers could learn a few business tricks from Hopkin’s Team. Iacocca would be proud! Wp

Reply Report comment
Geoff

Apr 25, 2015 at 1:34 pm

I purchased a 56 with the heel grind and love it! I had a custom grip and my kids names stamped on it. The stock shaft performs well around the green and on full shots. The feel of the face isn’t the softest, but definitely softer than a standard non carbon steel wedge.

Reply Report comment
Andy

Apr 25, 2015 at 9:43 am

No doubt Hopkins has marketing genius by the fact they are still kicking with brutal competition offering custom wedges galore. Yet remember reading about a Hopkins bust attempting to sponsor a failed mini tour.

May be time for Hopkins to jump into putters?

Reply Report comment
Roosterredneck

Apr 25, 2015 at 9:40 am

Yes, I want to hold it see it and swing it before I buy it.

Reply Report comment
Sebastien

Apr 25, 2015 at 6:39 am

Online is all nice to order but how can I try it, feel it before I buy it? Some products will always need a in person store location.

Reply Report comment
- Ben
  
  Apr 26, 2015 at 3:37 pm
  
  I bought a set of Hopkinds Wedges last year and that was my exact concern. After talking the a rep. he assured me that since they assemble in the UPS sorting facility, returns/delivery times were drastically shortened. They said if I didn’t like a wedge or even a customization, they’d do a free return and the corrected version would arrive within a week
  
  Reply Report comment

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GolfWRX Staff

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