Forums

Cost of Equipment, et al

• TyMacni 1,573 Posts

  Sat, Sep 13 2014 12:59 AM

  I realize this is not a new subject. I feel this way for all brands and products regarding cost. I enjoy WGT Very Much, but this particular instance really Hit me.

  Upon reviewing the New and improved version of a particular item, I went on site to post a review only to see someone had already done so as if they read my mind. So, I responded to Him and posted the following revtew (don't know if it will get posted there or here)

  TyMacni

  13 Sep 2014 @ 12:09 AM

  "Taylor R11 &R11S 3 Wood"

  Hello ********,

    PREFACE (please bear with me )- I am  a fan of Taylormade. I have 2 fantastic  drivers 1st is R1 TP 90 White w/ Aldila 65 Shaft(many rounds Ave over 300yrds. the day after I got it, I hit 2 320-330. then my longest of 357+. 2nd is R11S 9.5% consistently out performs it's 257yrd rating, and is Balls-on accurate. I have the Rocketballz 3 Rescue L26+. Great on the Fairway, and incredible from the rough. And lastly the Ghost Spider Putter L35+with which I am also very pleased.

  ALL THAT being said, I saw the RS11 compared to it's predecessor R11. UNfng believable.

  I just went on site to post a review of theR11S and saw yours' I agree 100%. It is almost word for word what I was going to say, (...so I am adding any way) 2 reviews may wake a  few buyers who, obviously are not doing due diligence!

    With the exception of 3 extra yards, the performance of is identical in every way. What IS NOT is the COST! (Unless someone wants to pay 100 Credits for each extra yard!!  With the cost of most ALL equipment, Balls, and accessories WELL Overpriced to begin with, this is Criminal!

    I am on a Fixed income after 32+yrs with my Company, and my Wife is very ill & on SSD after 29.5yrs with her Company. Even if I was Filthy Rich, I would still feel the same. I enjoy WGT very m much.                                                                                                                                                     I worked for a $85Billion Dollar a year Global Company, and Managed New Product worth several million $, so when just starting out I can understand,to a point, the need to generate income to cover development costs, overhead, and expenses. BUT with "over 10,000,000 Members" and 5yrs under the belt, I believe WGT should be able to reduce Cost by 50% and still make fair Margin. My company did. So does almost every business. (Flat Screens were $10-$12thousand , now bigger an better you can buy 5 or 6 for that.  New Technology Today is obsolete in 6

  months for improved product, and cost keep going down. (Even food products, cleaners, soft drinks, fast food, etc,etc are NEW and IMPROVED, Computers, Cellphones, watches, and cameras ,etc are "Throw-aways",. It's more cost effective to replace than repair.

     Thank you for listening while I wrote a Book to agree with what you said in 2 sentances.

• srellim234 2,077 Posts

  Sat, Sep 13 2014 1:44 PM

  I'm not going to argue whether things are expensive or not but there are a few things to keep in mind. 

  No one selling the product is concerned in any way with your income situation if sales are meeting their marketing targets. On a fixed income? WGT addresses that by allowing you to use time to buy items instead of cash ("free" credits).  Expensive car companies don't target your demographic; WGT might not be either.

  10,000,000 Members is really false advertising. I would hazard a guess that well over 9,000,000 of those are inactive, restarters or individuals with multiple accounts. Their claim of over "450 million rounds played" includes a large number of "rounds" which amount to only 9 shots taken as a complete round.

  My guess is that WGT is doing well financially but in no way can we automatically presume that they can easily afford to cut prices by 50%. It's a private company and as such they release no financial information to us.

• ApexPC 3,164 Posts

  Sat, Sep 13 2014 2:37 PM

  We can explore some areas that affect WGT's cost of doing business.

  1. The average software engineer pay in the San Francisco Bay area, which is where WGT is headquartered, is $100,000+ a year. Plus WGT has some not inexpensive employee perks - like 19 days of PTO + 13 paid holidays, and 100 % employer paid medical, dental & vision plans for employees & dependents. In 2012 a Forbes article said WGT had about 40 employees and a subsequent article elsewhere stated they were adding employees and wanted to increase to 50. 

  2. WGT Media claims 2.7M unique visitors per month -  71% of those visitors are males, with an average age of 44.6 years old, and an average household income of $75K.

  3. A 2012 Forbes article states the average paying player spends over $30 a month. What we don't know is how many of those 2.7M unique visitors are paying players. I suspect paying players account for a small minority of the 2.7M unique visitors per month. Also, most of those unique visitors don't become regular players.

  4. Office space is not inexpensive in the San Franciso Bay area. WGT Media has an office on Pine Street. WGT Media also has an office on Madison Avenue in New York New York, another high cost commercial real estate town.

  5. At one point someone in the forums indicated WGT leases server farm space from Datapipe, also a not inexpensive ongoing cost.

• alanti 10,564 Posts

  Sat, Sep 13 2014 3:35 PM

  Not a lot to add from what SR and Apex have said.

  But when I first found WGT it was only CTTH - twee with potential, but I left only to find the game a couple of years later. It had grown by virtue of the owners investing more money into the game.

  That is the key - investment and the game continues to grow by reinvesting money.

  Now we do not know how profitable the company is, my guess is it should be profitable, and if so I applaud WGT for getting it right - by taking that initial punt and succeeding.

  Had it failed how many players would parted cash to try and keep it going? (not to disimalar to PP asking for money to launch).

  Put quite simply, if prices are too high, people would not pay even if there is no viable oppostion (that is the key in setting a "market price").

  Is the company obliged to take a philanthropic stance, or what some people seem to think, a socialistic stance. NO - it is a company designed to make profts.

  I do agree that all new equipment does have improved attributes, whether a TV, Computer or golf club. But in WGT that will be negligible as equipment cannot improve dramatically as the game has become too easy as it is. And unlike your real items, the WGT clubs will never wear out, or deteriorate.

  Finally unlike most products, you can purchase items without sending real money via the "free credits" (depending on where you live). I cannot pay for my gas at the gas station in this manner, not go to a restaurant and ask if I can do a survey to pay for the meal - and you with time on your hands this seems like the ideal solution.

  It is a great game and personally, I think it is good value for the entertainment it gives me - but yes can be expensive but I have control over that, no-one else.

   

   

   

• SweetiePie 4,925 Posts

  Sat, Sep 13 2014 4:40 PM

  I assume it is helpful to be in the 90's with level. It is then one can gain ownership of the very top gear. The price of any item here may sting at first bite. At level 98, I have zero desire to change any of my clubs. I paid $40 for the L-96 putter, but that was many months & thousands of putts ago, so the $40, from that perspective is a paltry cost indeed. This is likewise true with all of the other clubs I have. I wish I could say the same thing about the $7 Nike balls I buy every other day.