Bob Parsons Says Next PXG's Will "Cost A Lot More"

Thanks to reader Steve for Scott Bordow's AZCentral.com profile of Bob Parsons and PXG. If you've been following the story of this premium--$5000 for a set--clubmaker, the story and quotes will sound familiar. Except the last one.

Discussing the future, Parsons says the next generation PXG's will actually cost more.

"We’re working on a process that has never been done before and is incredibly expensive," Parsons said. "Our next set of clubs are going to cost a lot more."

I'm not sure if this is a statement about the actual cost of the clubs, or a cost passed along by signing tour players, or simply Parsons' sense that there is an audience wealthy enough to pay even more. But it's fascinating!

Comments

[VKM]

Growing that game for the rich lol.

[Center Cut]

I got an iPhone 7 for work. Personally, I use a Motorla G. About $500 difference in price, both do the same job, and depending on where Iam and the conditions I use them in, one or the other is better at some things than the other, and sometimes vice-versa.

Go figure.

[Manku]

I believe Bob Parsons has done his homework on Velben goods....

Smart man!

[munihack]

There have been a lot of discussions online about PXG, his business model etc. Playing mostly munis I have only come across one set of the clubs. The guy who owned them was very happy he got them. The reality is the top pros all get gear customized for their swings, aesthetics and personalities- think Bubba's pink driver. Rather than Ferrari as a comparison I think a more appropriate item is a tailor made suit. For a certain group the price is not an issue. They want what they want. That is PXG's market. For them the price of the clubs are what they are. They want what they want and PXG gives it to them. In golf you can't buy a game, but you can purchase confidence- at least until the "suit" goes out of style.

[Jupiter]

It just seems ridiculous to me. If you can't hit the ball where you want to with an $800 set of irons how will a $5k set help you? Unless they have an on and off switch and hit the ball without my assistance they're probably not worth $5k. But that's just my opinion.

Just because you can afford them... it doesn't mean that you should buy them.

[JRP]

Does PXG make money?

[KPK]

Reminds me of the former Pro at Pinehurst, "Padge", who told management the green fee was way too cheap at #2, and pushed them to raise it so that it made the golf course special. I loved Padge, cool guy. But they've never gone back to common man prices. The connection between Parsons and Padge is perception. His clubs might not be any better than PING or Callaway, but people sure do think they are.

[PA PLAYA]

I guess "fascinating" could be one description. But I personally favor "out of touch with reality and closing shop by the end of 2018" as a more poignant description.

LOL...

[Benseattle]

I agree with Munihack in that many people will pay anything if it's for something they really want. IF they have the money, I actually did see the owner of a set of PXG clubs at nearby Bellevue Muni. We talked and it turns out his guy was a truck driver with a wife who worked at Microsoft... go figure. Still, while I begrudge no one anything, it will be interesting to see if anybody says "I changed to PXG clubs and they made me a better golfer." It goes back to the old saying: "How much does a used car cost? Whatever someone is willing to pay for it. "

[Schlasser]

VKM: It's not Bob Parsons job to "grow the game" for anyone.

[Chico]

Benseattle. I've sold some of my most expensive gear to some of my least well off members- kind of a status symbol attempt I suppose. I have two members here with them. One can certainly afford them- the other is a delivery driver!

[Original AG]

Marketing 101. Perception is reality.

[KCW]

If there is a niche for people who want to pay more why not let them? It's like saying I have a car that can get me from A to B so why is anyone buying that Porsche or my car can go just as fast and I paid $5k.

[Godin]

Swatch watches probably keep better time than most Rolex's. Just like Rolex the folks at PXG are marketing a luxury good that just happens to be in the form of a set of golf clubs.

@Jupiter, at certain levels of wealth folks stop sweating the price tag associated with various purchases. Most PXG buyers are probably at a point where $5k for a set of clubs just isn't a blip on their cost of ownership radar screen, and they probably sell to a few posers too.

@JRP, absolutely NFW the company makes money. For Parsons this is a hobby, he doesn't care if it makes money. At his level of wealth buying golf courses and starting a club manufacturing business are the same as purchasing a set of PXG irons for others, not a blip on his cost of ownership radar screen.

[The Ghost of Perry Maxwell]

As JRP says, do they make money? Or like when will Parsons get tired of writing checks, no way this thing makes money.

[John C]

Tulip bulbs - 21st century style

[Caddy kev]

The 7 iron I demoed was just my old ping s59 with some rivets. Waste of money if you ask me, but to each his own.

[Godin]

@Perry,

Bob Parsons could write a $100,000 check every day, 7 days per week, for the next 20 years, and it wouldn't exhaust 1/3rd of his net worth (and this assumes no appreciation of the balance during that time).

[Jordan Caron]

If he can get it, why not. Look at cars as an example. My Nissan Altima looks nice and does what I want it to. An Audi will do the same thing but is more luxurious and thus higher priced. I would love an Audi but don't think the extra $40K is worth it. Neither do I think an extra $3k for a set of PXG's is worth it.

There is a market for PXG no doubt. It's small but it's there.

[Keane Darren Storm]

Bob Parsons set is only for big money.
And his work only for those who have a lot of money.
No money, no set.

[WJ]

Back in November I played with the GM of a club outside Seattle as well as the head pro of another club in the area. The subject of PXG came up and the GM said they did a demo day and sold about $30K worth of clubs. Then about 75% of the orders were delivered wrong, from wrong shafts to grips not being put on properly. They had so much trouble getting them right that they closed their account with PXG.

Chico, that truck driver with a wife working at microsoft could be very wealthy, depending on how long she has worked there.

[Press Agent]

PA Playa, I'll bet you that Parsons will definitely NOT close shop by 2018.

[Tom Morris]

My next set of clubs will come from The St Andrews Golf Company, I want real clubs for a real game and a little bit of history built into them.

You will not be disappointed with clubs from this maker - they instill the game within each club made, just wonderful, perhaps a duplicate set to wall mount within a cabinet for my old age.

If you get a chance take the factory tour and watch craftsmen at work, it’s good for your golfing soul (depending, of course if you have one).

[The Ghost of Perry Maxwell]

@Godin

True...I've seen fortunes blown out of the water with logic like that. If the nest egg has issues, then it becomes a real issue. Depending on his liquidity-might be an issue, might not. I've seen his types lose their mind wring checks in losing ventures. As @jordan said there is a market, very small. A Dr friend of mine bought a bag of PXG last summer, he's very proud of them. I'll say this, PXG is doing something different then the rest, still not sure what their 'edge' is. I saw TV ads on FoxNews for PXG the other day, hmmmm.

[PA PLAYA]

@ Press Agent, I hope you're correct. I sincerely hope Parsons enjoys long-term success, never been one of those who needs a safe space while screaming, "oh my god, how can they! Think of the children!"

I just don't see much of a market opportunity outside of the true 1-percenters, of which I almost qualify for, but not quite.

I'm still living in reality, I guess, just happy I can afford my private club membership whilst sending the daughter to college. I do dabble in new irons every 2-3 years, whether needed or not... driver and putter - no thanks. Can't be that much better. Hybrids and fairway woods? Might be a game-changer. I'd be willing to fork over a grand to hit an 18º hybrid 220 yards on a rope every time. Definite game changer. But... something about Indians and Arrows kicks my ass every time.

Cheers!

[Godin]

@Perry,

There was no "logic" in my statement, it was simply made to illustrate how incredibly large the pile of cash that constitutes $2.4 billion really is. Bob's dalliance with PXG is truly rounding error as it relates to his personal fortune and it is nothing more than a hobby for him. Your kidding yourself if you think PXG will ever create any "issues" whatsoever for Bob, liquidity or otherwise.