Wedge Sales Up; Manufacturers Still Miserable

Ben Klayman of Reuters talks to Golfsmith CEO Martin Hanaka about the 22 percent bump in wedge sales as a result of the USGA's rule change. Naturally, this isn't enough.

The potential for sales of the wedges could be huge, said Hanaka, as most golfers carry three of the clubs, whose retail price has risen 9 percent from last year to about $100 each.

This is the first rule change leading to higher sales of golf equipment in more than two decades, he added.
Even if just 10 million of the 29 million American golfers buy three new wedges, the industry would gain $3 billion in sales.

"It's important for us to take advantage of these opportunities," said Hanaka, whose Austin, Texas-based company had about $345 million in sales in its last full fiscal year.

Yes, take advantage of the people, they love that! As the numbers are showing...

"People are playing fewer rounds," Hanaka said. "This recession has taken a big bite out of people's budgets and even the most avid golfers are managing their golf expenditures."

As far as the broader economy is concerned, he said he sees no cause for near-term optimism. "People are still very nervous, and discretionary big-ticket purchases will suffer."