In celebration for this past Labor Day weekend, I decided to address a sticky question for many clubmakers – what to charge for your services. Here are some tips that will help you establish your pricing strategy.
When you own a clubmaking shop, it seems like that everybody is your friend. For professional clubmakers, they need to be professional by posting your pricing up front either on a wall chart or in some type of price list that is available to your customers. You don’t want to be in a position where you are constantly haggling over pricing with a potential customer. Remember many of your customers will be professionals as well such as physicians, attorneys, electricians and plumbers. When was the last time you haggled pricing with these professionals? That’s what I thought. So be fair, tough and consistent on your pricing policies.
Determine if your pricing should be flat rate or hourly
For routine repairs, like re-gripping or re-shafting, consider charging a flat fee over the cost of the components. For instance, for re-gripping on a retail level charge $3.50 over the retail cost of the grip or for re-shafting $20.00 over the retail cost of the shaft might be a reasonable fee. Retail cost is what the average person can find in component catalogs or on their websites. This method is more efficient than figuring a certain percentage or margin you need to make.
Plus don’t forget in certain cases like Callaway clubs, you may need specific replacement ferrules that are more costly than a run of the mill ferrule. A specialty ferrule is a component as well. This will need to be factored into the price otherwise it will start to eat into your profits.
For basic services like lie / loft alteration on irons and wedges, you can also use flat rate like $4.50 per club. However, for miscellaneous repairs such as removing a broken shaft from the hosel, using a flat hourly rate may be a good way to charge for your services. You might run into situations where you might not know how long or how complicated a task make be. For instance, you make task on the task of removing the ball bearing from a certain Ping putter or hosel pin on an older Hogan iron you haven’t experienced before. By charging an hourly rate you protect yourself from unforeseen problems.
Price your services fairly for yourself and your market
Lastly, remember to price your services fairly based on your competition in your immediate area as well as your skill level and reputation. On one hand you don’t want to under-value your services where you feel like you are working like a dog for nothing. On the other you don’t want to over-price your services either that you wonder why the phone is not ringing or traffic is slow in your shop.
Making the customer aware of what club repair will cost upfront can only serve to make it a more pleasurable experience that should produce return business as well as word-of-mouth advertising for your shop.