These are not stocked in high quantities, but merely for the convenience of one-stop shopping. The real profit comes from selling the luxury items at full price to a consumer who is willing to pay for the store experience and the additional service as well as the added cache of a famous name. Basic sporting goods are unlikely to be the focus of the store -- instead the types of brands that are only available at high-end golf stores will be showcased.
Within the premium golfing market, of course, there may be some sales, and some competition within the segment locally. Stores may offer sales on notable luxury items at the end of the season, to clear their inventories, but the cache of the brand will help to ensure that this type of competition does not totally dilute the value and reputation of the item. Within luxury segments, manufactures must be careful to avoid brand dilution -- for example, if a high-end brand offers a lower-end version of its product line, it might unintentionally drive customers away, because the customers want the social as well as...
Some golf stores may avoid selling lower priced goods, even if they can sell at a larger volume, to ensure that customers that spend a great deal of money feel that the store suits their image and needs. Within the context of a luxury store, if the prices of the clubs, tees, and balls begin to drop and 'corrupt' the elite allure of the store, the core base of customers may be lured away. For some golfers, the ability to be able to afford to golf, and to pay premium prices at a specialty store may be part of the pleasure of the sport, and even exceed the pleasure of actually participating in the sport itself.
Works Cited
Kotler, Philip & Kevin Lane Keller. (2006). Marketing Management. Prentice Hall.
Marketing strategy. (2009). Quick MBA. Retrieved June 4, 2009 at http://www.quickmba.com/MarketingStrat.shtml
Moffatt, Michael. (2009). Income inelasticity of demand. About.com. Retrieved June 4, 2009 at http://economics.about.com/cs/micfrohelp/a/income_elast.htm
