Prediction: Callaway Dominates Golf Club Sales in 2010

Early in Callaway’s History

Back in the mid 80’s Callaway was just getting started and they wanted to develop a product that could instantly brand their company and make a name for themselves in the golf world. But…they needed someone and something to do that for them.

The “SOMEONE” ended up being the most influential golf club designer of my era. The designers name is Dick De La Cruz, and he has created, designed, and patented a large portion of the biggest hits in golf for the past 20 years.

The “SOMETHING” they found was one of De La Cruz’s many accomplishments in golf club design, it was called the S2H2 System (Short, Straight, Hollow, Hosel) developed back in 1988 for Callaway. This patented Callaway Golf system shortened the length of the hosel, allowing weight to be moved lower and to the more useful perimeter area of the clubhead.

Success of the S2H2 System

Since ’88 Callaway has used the S2H2 system on all their drivers and irons. But 2008 has shown that Callaway might be re-thinking the system and where they want to be in the future. For years Callaway has owned the mid-high handicap industry when it comes to equipment sales. But they struggled somewhat getting their product in the hands of the better golfers. But by the looks of it, companies like Titleist might be in for a rude awakening if Callaway continues the 2008 trend of offering both no-hosel and hosel designs. Many of the lower handicap players that preferred the more traditional top line and hosel shapes could have another option in the golf seasons ahead.

The shift in Callaway’s business model was first seen with the release of Callaway’s first square head, the Callaway FT-i. It only had a mini-hosel but it was a start. Later, came the Callaway FT Hybrid which had a full hosel! This would have been big news in the golf world but Callaway snuck it in the backdoor not wanting to ruffle too many feathers of the golfers that were responsible for their success. The recent increase in requests from touring pros might have been what convinced the decision makers at Callaway that they might be able to grab a bigger piece of the pie when it comes to golf club sales.

Why Does a Hosel Make a Difference in Golf Club Sales?

The reason: It is because a longer hosel alters the “center of gravity” of a golf club. The S2H2 system allowed more weight to be pushed to both the sole and the perimeter of their clubs. This was a major advantage for the higher handicap and Callaway reaped the benefits, but many pros prefer a more traditional feel, and they never felt quite comfortable playing a club that really was never designed for them. But they can remedy this by simply adding a hosel back to their designs, it gives both a more traditional look and feel for the lower handicapper. Crazy to think this little bit of added metal could make a difference I know, but just watch in the next couple years. You can already see it now actually, Callaway is making more clubs aimed at the lower handicapper as we speak (forged Irons, forged Wedges, hosels, tour authentic gear, and more).

Domination in 2010?

So be on the look out for more hosels at Callaway but don’t expect to hear about it in the news. The last thing they want to do is make the golfer that is responsible for the success (higher handicapper) feel like they are alienating them and going to only make clubs for the guys in the short grass. I truly believe that if Callaway can just marry the two business models side-by-side that by 2010 they will not only dominate the game-improvement market but also the player’s club market as well.