WIRED On PXG: Parsons Predicts $60 Million Annual Run Rate
/Wired's Mark McClusky reviews Bob Parson's PXG clubs and comes away impressed by the irons, not so much by other clubs in the bag.
The story features an extensive look at how the clubs came together, what motivates Parson and how things have been going for the luxury upstart.
The company has grown to 70 people, and Parsons says the response has been beyond what he had hoped. He predicts that the company will finish the year at a $60 million annual run rate. The challenge will be to continue to innovate, and fight a market that’s usually driven by an annual set of new gear to entice golfers to spend more.
“We don’t have a product cycle,” says Parsons. “Our product cycle is that we have to make sure that we have breakthroughs in performance. When we do, we’ll release something new. Who knows when that will be with our irons?” Until then, he’ll sell the same model.
It's noteworthy that Parson cites the annual run rate while also putting down the concept of product cycles. I'm sure you money gurus out there can help us novices better understand his comments.
The story also features this put-down of the annual PGA Show.
“I don’t really compete with the other club companies,” he says. “They have a big trade show in Orlando each year, and we don’t go to that. We don’t go for the same reason that Ferrari doesn’t go to the Detroit Auto Show. They build the absolute best thing they can, and then put a price on it. We’re both in the luxury market.”