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Change in business model

CHANGE IN BUSINESS MODEL

Let’s begin with a few questions.  Do you think Travis Mathew is arguably the most successful non-equipment golf apparel company currently?  Do you think they sold out to Callaway last week because they were tired of being successful and running their own show?  Maybe they preferred to report to new bosses in Carlsbad instead of Huntington Beach.  Oh, maybe they thought the cool SoCal vibe they worked so hard to perfect would be better off having an equipment company who has been horrible at their own clothes own them…yeah….that’s the ticket alright.

 

For those that are thinking about arguing for Peter Millar being the most successful golf apparel company that doesn’t make equipment, don’t bother.  They were acquired by the luxury goods company Compagnie Financiere Richemont in 2012 because I am certain that guys in North Carolina want to work for a Switzerland conglomerate.

 

Seems odd, since the majority of experts who have sounded off over our decision seem to think that marketing to everyone (like Travis Mathews…and Ogio did before they were bought…er, rescued by Callaway…whatever) is a sure fire strategy.  

 

What about Bonobos (they are even better because they make way more than just golf clothes….)? Think they were all dying to work for Walmart?  By the way, Bonobos raised $127M in venture capital only to have to go to work for Walmart.  Weird….because they tried to serve everyone, even those outside of golf.  

 

We also said goodbye to IJP recently….backed with major money and a very visible PGA Tour player.  They couldn’t even sell it, they just shut it down.  Seems odd, since they marketed to everyone.  Certainly “fashion forward” eh @jt_thebreakfastball 

 

Just for fun, go back 5 years on the PGA Show vendor list and look at all the clothing companies that are dead.  Go ahead…..we will wait…..

 

Back already?

 

We could have gone on and on with the graveyard of companies in the golf apparel sector.

 

Now, given what we know, add on top of that, we give 100% of our net profits to charity.  We exist to make solid golf apparel and then…wait for it….wait for it…..we give the money away.  Yep, we are pure evil alright.  Sounds horrible, doesn’t it?

 

No matter what you think of that business model, we can all agree that marketing to everyone takes major cash.  Just Google what Jason and Rory were paid to wear Nike.  

 

While we are on the bigs like Nike, no doubt the social media experts already know that what makes Nike, Adidas and Under Armour work is that they all make their real money outside of golf. 

 

That brings us back to 2GG.  We are a small.  In a small (and shrinking) market.  Nike and Adidas spend more in a month on marketing than Travis Mathews grosses in an entire year.  Get the picture on how small we are?  

 

Let’s pretend you are going to open your own golf apparel company.  It takes major money to spec and manufacture a line, then you gotta sign some pros, dump a bunch of money into marketing and then hope people buy your gear.  Now imagine that you can’t take on private equity partners, you can’t get a line of credit because, guess what….you are going to give all the proceeds to charity (for that, the trolls will kill you on social media).  Oh yeah, one more thing, you have to work for free and not take any money out of the business.  

 

We can't try and get bought because no one buys a company that gives its money away and that was never the point of 2GG.  The point was to create a revenue stream for charities and do it in the golf world because we love golf. 

 

One last thing if you are still here:  If you want to lecture us about our new model screwing the charities we give to then email us your tax returns for the last 4 years and if you gave more than us, or you personally own a company that gives more than us, we will invite you down to lecture us in person and maybe we can learn something from you.  If not, you could protest us by giving to Feed My Starving Children.  It costs about .25 per meal to feed a kid so dig deep and really show us how mad you are.

 

P.S.  We didn’t pull the only known cure for cancer off the market, we didn’t sell EpiPens for $600, we didn’t get long-putter anchoring reinstated or take away the remedy for slow play, we make golf polos for crying out loud.  We are certain that there are things in life worth getting upset over that are much more important than golf apparel.