CASE STUDY 3: Championship Golf Course
When purchasing accessories for retail operations, the golf industry has long been using traditional avenues. Primarily, this means selecting merchandise from a industry vendors catalogue. There is very little price competition between these largely scaled companies, which creates an illusion that there is no alternative.
When evaluating the buying practices of large national retailers in other industries, a more cost effective method can be found. These retailers purchase a high volume item directly from the manufacturer, as opposed to purchasing from an intermediary. This allows for a significantly discounted price. By applying this model to the golf accessory market, the opportunity to save on cost of goods becomes apparent.
Having hosted multiple PGA Championships, this particular Mavric client is arguably the greatest championship course in the United States. It offers two courses of dynamic contrast and world-class prestige, and was looking for a partner who could:
• Maintain or exceed the current quality of its logoed products, while reducing the cost of goods
• Be involved in the process from start to finish, which included having the ability and support to develop new products
• Provide a high level of customer service
Shortly after the initial meeting with Mavric, it was apparent that Mavric was the right team for the job. Starting from product creation, Mavric was highly involved in the details of each accessory design. Prompt, accurate, and efficient service was provided during changes made to any of the product designs.
The benefits realized by Mavric’s major Golf Retail client were:
• Each product received met all quality checks, and in many cases, exceeded the quality of like products that were carried previously
• Cost savings ranged from 30%-50% on the majority of products, and reached as high as 70%
• Net result of the above had a real impact on bottom line revenues
With thousands of design houses to choose from, finding and vetting a vendor can be a daunting task. Many of these design houses fall short in consistently producing on trend designs, some fail in manufacturing quality goods, while others find it challenging to deliver products to the correct location on time. Failure at any of these points results in loss of potential revenue. Mavric has solidified its position in the industry by developing a service model that brings transparency and first class service to a marketplace that often times lacks those core values.
Increasingly, retail buyers are looking to their vendors to take a more active role in the design of new products. Mavric offers fresh perspectives and on trend designs for retails no matter what phase of design they may be in.
Each client is a partner, and the goal of that partnership is to create successful products. Mavric achieves this success through respect of each client’s unique goals, quality manufacturing, and of course, on time delivery.
“Mavric Inc. is a key partner of ours. Not only do they provide us with an assortment of quality products at a price point that’s allowing us to capture higher margins; it’s their attention to detail, customer service and delivery of product that are why we enjoy doing business with them.”
-Director of Operations, Championship Golf Course