Launched in 1995 and shut down in 2002, Chipshot.com was an online golf shop that peaked at 200 employees and $35 million in annual revenue after having raised $50M. The company struggled to survive with a myriad of competitors and in navigating the 2001 Internet bubble bursting.
Chipshot.com attempted to develop a one-on-one rapport with consumers by taking a page from Dell Computer’s operations manual. The company was the only sporting goods site that made customized golf clubs, which cost roughly half that of rival brands. This build-to-order approach allowed Chipshot.com shoppers to handpick drivers, irons, wedges and putters based on playing ability, gender, physique and budget. Rotating graphics and detailed charts with expert commentary simplified the purchasing process, which took about a week from order to delivery.
A big challenge was managing inventory as the potential number of clubs they could manufacture was unlimited. Plus most of their customers were novices and first-time buyers, and, as they improve, there was the possibility they will move on to more well-known brands as opposed to the inexpensive brand-name equipment they sold. They were unable to sell to more seasoned golfers who like to try out equipment at shops, while bypassing the channel agitated golf club makers.
