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Last Update: Monday April 6, 2020

Key Idea: Leverage Infrastructure to Create New Revenues

Today John Solheim's state-of-the art factory is used for more than making golf clubs.

Key Question:

A: 

Find ways to use what you have to create new revenue streams.  Ping is so good at machining parts to make golf clubs, it now machines parts for other manufacturers.

Q: When and why does this make sense?

A: Only when your core business is perfected and thriving. We imagine that part of the reason John Solheim proudly showed us equipment that is dedicated to making products for others is that he is personally challenged by these projects. He's been making golf clubs since he was thirteen years old. The company is strong and profitable so now he has branched out. Don't let John's success make this look so easy that you try it before you're ready. Another opposing theory is to stick to your knitting.

Think about it

What do you do for your current customers that you could do for others? What part of your talent and/or equipment could you deploy to easily add sales?

Clip from: Ping Golf with John Solheim, Karsten Manufacturing

Made in the USA:  Ping putters. Manufacturing is coming back.

How do I keep quality high? 

Phoenix, Arizona:  Innovators, by their very nature, are constantly going up against existing systems. The establishment. Sometimes their insights do not come by small increments, but by large leaps and then the renegades become outlaws!

If you are a golfer, you know Ping. It ranks at the top with Titleist, Spaulding, Calloway, Taylor-made-Adidas...  Yet , this business is still privately-held; and though the patriarch (and father) has died, his son, John, continues to build on all the lessons he learned as his engineering apprentice when they started this business.

Meet the Solheim family.  Like so many who redefine an entire industry, they were outlawed within it. They broke the rules. They created something totally new. Some people thought they were just crazy, until they began winning within their game. These renegades persevered. They negotiated, and today they are leaders within their industry and on their way to becoming a billion dollar business.

They began in a California garage in 1959. The sound of success here is "Ping"   and today John Solheim continues a tradition for excellence that began with with his father, Karsten.  Together they invented and began manufacturing  the Ping Golf Clubs.

Here you will see how a business constantly strives for a higher perfection.

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Ping Golf of Karsten Manufacturing

John Solheim, Chairman & CEO

2201 West Desert Cove
Phoenix, AZ 85029
6026875000

Visit our web site: http://www.pinggolf.com

Office: 6026875000

Business Classification:
Manufacturing

Year Founded: 1959

Leverage Infrastructure to Create New Revenues

MUSTAFA HIGHUNA: I'm Mustafa Highuna, director of research and testing. This is the Pingman, our mechanical golfer. A small change in--a small modification or a small improvement can mean a big innovation. Every time that you made a small modification, you open new doors, and for every door you open, you have 10 doors open, and it kept on going. So it's an infinite--trying to reach infinity, which you never can.

HATTIE: (Voiceover) Karsten Manufacturing has become so famous for precision in the making of golf clubs, others come to them when perfection is required.

JOHN: Now we're doing a lot of parts for Boeing. The accuracy--these machines will hold 2/10ths of 1,000th over six feet. We have one machine that will hold 40-millionths over six feet. And it's just--it's as accurate as the machine is.

HATTIE: (Voiceover) Did you hear what John said? He's illustrating Karsten's commitment to making anything they touch perfect.

JOHN: We don't have to answer to stockholders to meet a quarterly thing and that causes big industry to have to do things that really can hurt the brand and hurt you long-term. And we're not going to do that. We're going to take our time and then put it on the marketplace, give it a little bit of time to mature.

JOHN: If you build the best that there is, you know, you will always have people that want your product. If you're just a `me, too,' then you're not leading. So if you have that quality and you stand up and make sure you keep in the lead, that's going to keep the customers coming to you. But you've got to work hard to stay ahead.

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