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Working business plan?

Fri, Aug 20 2021 12:33 AM (26 replies)
  • HackWilson1930
    1,437 Posts
    Fri, Apr 6 2018 6:10 AM

    The WGT business plan is a mix of being a platform for advertisers and in app purchases. For us on the outside, with no access to profit and loss numbers, how these two prongs function is completely dark. The product that WGT sells to us, the end user, has a relatively low cost to them. However we are not privy to licensing contracts that WGT has in place with companies such as Nike, or Callaway, or the USGA, or even the individual golf courses. This licensing cost of doing business must be passed on to someone. 

    The percentage of revenue that is derived from each of these  income streams makes an impact on what WGT does in presenting the game to us. Obviously some users make purchases of branded equipment using credits that have been acquired from WGT. How those credits are acquired by the user is also a piece of this puzzle. 

    We only guess that the biweekly clashes have an impact on the bottom line, but we have no real idea. It makes sense that a clash will create some income for WGT. But is it necessary to be profitable? Or is it like up sizing at a fast food restaurant?  Up sizing is not necessary but does add a small percent to the company's existing profit. Does a clash only add a small percent to the bottom line?

    As consumers we all make decisions  about how we will spend our money as well as our time. We come to this site so we have already decided something about our time. We also have immediately become targets for the first prong of  the business plan. If we use the "free" credit option, we are never very aware of the second prong as we make our in app purchases with our "free" credits. My guess is that the advertisers make this a profitable company with the cash customers adding the "gravy". Of course, this is just speculation.

  • Borat74
    2,797 Posts
    Fri, Apr 6 2018 3:00 PM

    Hey hack

    I started using max balls last september as i knew the nike balls lvl 90 were going to disappear at some point,so had to find a replacement ball that wouldnt disappear and thought this was a good idea,as for your point above i think the clashes were a larger profit than people think,i was in the Georgian for a short while and when i was there the winning scores were around 230-250,000 points(i think its about half that now)so im presuming some profit has been lost as there is not really a challenger who can stump up that many points now or who arent willing to stump up them scores then the percentage for the clashesmaybe at an all time low(im not sure)??

  • YankeeJim
    25,827 Posts
    Fri, Apr 6 2018 4:29 PM

    The clash is just another line item under sales. Nothing to be read into it, it generates revenue just like equipment and all the other trinkets they invent. Income-whatever generates it is the business plan.

  • AlaskanDame
    19,550 Posts
    Fri, Apr 6 2018 5:27 PM

    MKALER:

     As far as I can see there's nothing to be gained from playing Turf War. Am I right in thinking that you don't get anything for being top of that leaderboard?

    At least with the Clashes you do get something back, even if it is just passes for yourself, tee markers and course builders for the the club. 

    The club winning a turf war is supposed to get a course builder (plus 2000 coins for each person who played).  

  • Luckystar5
    1,641 Posts
    Fri, Apr 6 2018 5:36 PM

    AlaskanDame:

    MKALER:

     As far as I can see there's nothing to be gained from playing Turf War. Am I right in thinking that you don't get anything for being top of that leaderboard?

    At least with the Clashes you do get something back, even if it is just passes for yourself, tee markers and course builders for the the club. 

    The club winning a turf war is supposed to get a course builder (plus 2000 coins for each person who played).  

    You recieve an extra superpass for the clashs, and an added amount of club xps

  • pmm711
    5,709 Posts
    Fri, Apr 6 2018 7:59 PM

    Their business plan has to do with “entertainment” and NOT about “Creating & maintaining the best simulated golf game”...which by the way it could be.  Of course they’re also trying to stay viable...so the stupid s-hit they do on the game must generate some sort of profit...although I truly wonder who is buying their bullchit.

    If you really want to see what they’re after then go to a TopGolf Driving Range...arcade golf at ridiculously high prices.  

  • AlaskanDame
    19,550 Posts
    Fri, Apr 6 2018 8:29 PM

    Luckystar5:

    AlaskanDame:

    MKALER:

     As far as I can see there's nothing to be gained from playing Turf War. Am I right in thinking that you don't get anything for being top of that leaderboard?

    At least with the Clashes you do get something back, even if it is just passes for yourself, tee markers and course builders for the the club. 

    The club winning a turf war is supposed to get a course builder (plus 2000 coins for each person who played).  

    You recieve an extra superpass for the clashs, and an added amount of club xps

    Yes, I stand corrected.  My confusion arose/arises because my club (after winning the turf war) actually had one LESS super pass for this Clash than it usually gets.  wgt backwards, as usual, perhaps.

  • HackWilson1930
    1,437 Posts
    Sat, Apr 7 2018 4:11 AM

    pmm711: Remember that WGT is a division Topgolf. They are separate entities with different goals. Yes, WGT answers to Topgolf and adds income and, hopefully, profit to Topgolf's bottom line, but it operates independently. 

    Topgolf's mission is very different from WGT's as is their business plan. Our concern as WGT's end users, is what Topgolf plans to do with WGT. 

    WGT is part of Topgolf Media led by YuChiang Cheng, who co-founded WGT. In his profile, Topgolf says this:

     At Topgolf Media, YuChiang and his team tap their gaming, entertainment and tech expertise to create meaningful, shared digital moments for the Topgolf community. Through the use of technology, Topgolf Media further enhances in-venue golf games, apps and virtual experiences. In addition, the company supports the Topgolf experience with strategic partnerships, sponsorships and digital content.

    It would seem that Topgolf may be using more and more digital content at their venues. Going forward, we can only guess how all of this will effect us.

  • gonfission
    2,246 Posts
    Sat, Apr 7 2018 11:17 AM

    pmm711:

    .although I truly wonder who is buying their bullchit.

    I play twice a month now, maybe. However, I see a lot of those white "Premier" icons next to players names. Apparently, their gambit paid off, on that chum bucket

    HackWilson1930:
    Yes, WGT answers to Topgolf and adds income and, hopefully, profit to Topgolf's bottom line, but it operates independently. 

    I have maintained from the beginning that Topgolf, bought WGT, as a tax offset, for their huge facilities. A successful company, at the end of the year, needs to show losses, or pay excruciating taxes on profits, made by the higher earner.

    In the road construction business, bidding federal work, the gravel pit, the heavy equipment doing the work, trucking companies, asphalt plants, are all different businesses. All owned by one entity.

    Each, normally has a minority as CEO, to win bids, and look competitive, as different businesses. At the end of the year, the trucking part of it all, is the major loss cost factor.

    The gravel pit rent’s the trucks, the heavy equipment companies rent the trucks, the asphalt plant rents the trucks. Trucks fall apart as they drive down the roads, need lots of repairs. End of year, all businesses claim losses on the trucking business.

    That loss is covered by the other companies’ profit, as to not be singularly taxed as one entity.

    Business loophole 101

    I don’t suggest anyone run into the trucking business. To be successful, one must have at least 15 – 20 running every day. A company near me has over 500 on the roads.

    Registrations, overweight permits alone, cost him over a million a year, before he hauls one ton of material.

    Topgolf has a plan. In the cold weather WGT is banking coin. In both warm, and cold, Topgolf is producing bank.

    Profits need to go somewhere. They sure aren't going to the PC version of development anymore.

    ☢-----------------<*{{{{{-(

  • YankeeJim
    25,827 Posts
    Sat, Apr 7 2018 11:53 AM

    gonfission:
    I see a lot of those white "Premier" icons next to players names

    I do, too, and it knocks me out. I totally don't get it.

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