Our early bookings on the lithium products, which are slightly more expensive than the standard battery products, are very good and they are actually ahead of where we thought they would be, so certainly there is a demand for a more stylish product that is easier to use.
So the new Freeway II is in demand?
It is starting to gain some energy. The trade feedback has been absolutely excellent. They love it.
And it comes in white, which is a bit of a departure.
The white model is going down a storm. We have looked at what has happened in other markets, such as the automotive industry, and for the first time in 20 years we are seeing all sorts of premium sports cars available in white, so it is really a fashionable colour. The brilliant white strikes a tune with a lot of people. It is eye-catching, it looks great in-store and it will stand out in a product display.
What are its RRPs?
The Freeway II starts at £449 and rises to £649 for the lithium battery, but when considering prices it is important to look at what PowaKaddy offers as a group, which is a one-stop solution for our trade partners. We have push trolleys starting upwards from £80; then we move into more exclusive BagBoy push trolleys at £129-199; then we have the Hill Billy brand which hits a price of point of £299, which is our entry level electric trolley; then we move into the PowaKaddy Freeway at £349, which has been around for eight or nine years - but we have re-styled it with new sports wheels and a lighter battery - and then we move into the new Freeway II range.
We have the answer for all golfers who don't want to carry bags. While we have to accept, like everyone else, that the economy is tough, there are a lot of people still playing golf and they do generally have more expendable income than people playing other sports, and if we can develop technologies that offer real benefits as opposed to trying to get away with offering just premium branding, we think we have a better chance than anyone else to convince people to invest in such products
How does the Preferential Stockists Programme reward retailers?
We are looking for retailers to stock different models through the range, and in return we are not expecting a depth of stock. The Preferential Stockists Programme basically covers the PowaKaddy and Hill Billy products, and our bag range. The programme offers retailers a quarterly rebate for stocking our products, as long as they maintain a minimum level. It has gone down a storm, we have had virtually no negative feedback, and I think it has come at the right time.
We have a very strong sales force of seven people for the UK and Ireland and because of that we can obviously make regular visits to our trade partners, so we can have a minimum stock criteria and our sales guys can work with retailers to maintain it. This ensures retailers are not overstocking on certain items, and when consumers walk into their shop they will see the full range, rather than just part of the price range.
Is the PSP for pro shops in particular?
We have three levels of package, and we wanted to make sure we did not disadvantage retailers who can only hold a small minority of stock. The minimum level only includes three electric trolleys, a couple of bags and a few accessories, and the pro gets rewarded for that. There are some retailers who want the best pricing but with no commitment, but I think retailers should show some commitment to manufacturers, and that is what we are asking for.
What about on-line?
Online retailing is definitely here to stay. We don't fight it like a lot of companies do, who put up placards saying, ‘we don't want to deal online'. We work with the online customers who display our brand and products in the right way.
Is the average age of the trolley user coming down?
Definitely. We have taken a lead role in this development since 2003, when our marketing campaigns helped to drive the average age down. Our marketing message was: "Serious players use PowaKaddy". Trolleys are now seen as game improvement tools. For golfers carrying their clubs who feel shattered after 16 holes - they wouldn't if they were using a trolley.
What are your expectations for the rest of 2009?
While we are not expecting to see market growth necessarily, we are expecting to take some market share back by supporting our retail partners much better. We have a great product base to deliver now so we are pretty bullish.
