An interesting story developed in Augusta, Georgia this week and it had nothing to do with Augusta National or the Masters. You see, two golf shops in the area were offering discounts on golf clubs to members of the military as a thank you to those soldiers who decide to take up the game.

Karsten Manufacturing, the makers of PING golf clubs, were suppliers to both of these golf shops in the area. Upon finding out that the shops were offering discounts below their suggested retail prices, Karsten ended their supplying relationship with both of the shops. Karsten has a strict policy of price protection that is stipulated in their relationship with the shops it supplies with its equipment. In that policy, Karsten stipulates that while the golf shops technically buy the clubs from the manufacturer, and own them, that they cannot sell what they already own for less than what Karsten tells them.

You’re probably wondering how big of a discount that the two Georgia shops were offering. It was a staggering 10% to members of the military. I know, $15 off of a new putter, $40 off of a huge driver, and maybe $70 off of a set of custom fitted irons is a huge deal to the manufacturer. This is especially true when those discounts do not have an effect upon the accountants at Karsten – after all, they already made their money by selling the clubs to the golf shop. In essence, the golf shop is taking a hit on their bottom line by offering these discounts as a way to drum up some business in a military town.

Karsten, though, stood by their policy. They stated that they had a no-discount policy regardless of who the discount went to and that they have closed hundreds of accounts previously for any number of pricing taboos. Bill Gates, counsel for Karsten, said the policy was in effect to "defend the [PING] brand."

Now, here’s where the story gets interesting. Not but a few days later, after this story was revealed in the Augusta Chronicle, Karsten decided to take action. In an act of what business-schooled persons would tell you is "corporate citizenship," Karsten decided to implement their own mail-in rebate program that would allow members of the military to receive discounts after the purchase and the rebate would be based on a percentage of the purchase price (approximately 10% from what I can gather).

Karsten went on a PR assault, sending out some email messages and releasing a statement that said this program confirms their company’s commitment to the military and a bunch of other MBAspeak. In the Augusta Chronicle follow-up, counsel Gates said that, "We don't know what the retailer may be charging for the product. We want instead to provide the rebate from Ping directly. So it doesn't matter what they're charging out there."

If that’s not doublespeak, then I don’t know what it is. Let me get this right. Karsten cuts off its relationship with two golf shops that sell their equipment because they were charging a price that Karsten did not authorize. Yet, not one week later, Karsten reveals that the price a shop charges for their equipment is immaterial. Something is not right.

Here’s the truth of this whole debacle. Karsten took an opportunity to crack down on a couple of retailers that were trying to increase business with a good-natured discount. Karsten subsequently got bad press for doing so because the discount was to members of the military, who honestly deserve small discounts as a minimal thanks for their tremendous service and sacrifice for our national safety (even if you disagree with how the soldiers are deployed by the Commander In Chief). Then, in a perverse attempt to get its cake and eat it also, Karsten quickly concocted a discount program that would make them appear sensitive to and supportive of the military, as well as maintain their somewhat-rationale pricing policy.

Look, almost every golf manufacturer has a pretty strict pricing policy and I can be willing to concede that they have a right to enforce it. But, to claim that the policy is an attempt to "protect the brand" is biz-lingo for "protecting the bottom line." There is no need to be dishonest to the public like that. Simply be honest and most reasonable people will understand what is happening.

The worst part, though, is that Karsten has tried to capitalize off of a negative situation. I know that corporations have done far more ruthless things in an attempt to look good in the public eye, but this is golf we’re talking about here. Golf is a game of class, honesty, and friendship. It’s the social interaction, self-enforcement of the rules, and history of the game that promotes this culture. Yet, here comes corporate golf to ruin that reputation, or at least attempt to exploit it all in an attempt to maintain their bottom line and premium pricing on their products.

Of course, there is not much that can be done here except to exploit the truth. I know this is a small story, and does not impact many of you, but this should cause some outrage somewhere in you. Hopefully, it will outrage you enough to strongly consider something more than cc’s, loft, and shaft stiffness in your next golf club purchase. I’m not telling you to boycott Karsten’s equipment – I’m asking you to consider redefining "brand loyalty."

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