Gene Parente - CEO @ Golf Laboratories

Welcome to another CEO Wisdom podcast. We have Gene Parente with us today. Gene is president at Golf Labs. It's an interesting company, to say the least. They make devices to measure data from golf clubs and golf balls. They even have a robot that they put on a golf field, and I saw it do a hole-in-one the other day. I was pretty impressed. So, Gene, welcome to the podcast. Tell us a bit more about yourself.

Thanks for having me, Charles. Uh, yeah, I've got kind of an interesting story. Um, it's the only job I've ever had. I started when I was 23 years old, straight out of college. To be totally honest, dumb as a box of rocks, didn't know anything. Started in the golf industry because my father had worked in the golf industry, and together we bought a machine from Titleist for $100 that was powered by a garage door spring. And I started testing with this. The industry was really small at the time. It was 1990. We started testing with this machine. The one thing about the machine though, it was consistent, even though it was this death trap that spun around and hit a golf ball, it was very consistent. So a couple years later, I started looking at the industry as a whole, and I realized that there was a potential to design a piece of equipment that could kind of revolutionize the industry. So I embarked without any engineering ability to build my own robot. I got together with a young engineer, laid out my vision. We created this servo-driven robot, and what makes it so unique is it can duplicate any golf swing, from the number one player in the world to someone who's just swung a club for the first time, and it's highly accurate and highly consistent. So what we were able to do is introduce this to the industry It's used by all the major manufacturers, the USGA and the RNA, which are the governing bodies of golf. And what it does is, if you want to design a club for a tour player, you can set it up for a tour player swing. If you want to design a club for a high handicap or a beginning golfer, you can set it up for that. So it has a lot of flexibility in the system from an adjustment standpoint, and it allows golfers to do different things. And then What we've done lately with it, and, you know, we can get into this, is we have created a data set in which we're able to analyze a player's swing not only from their biomechanical standpoint but also the equipment standpoint, and we can give them recommendations as to what's the best lesson type and what's the best equipment to pretty much maximize the enjoyment of the game.

Interesting. And how do you make money with this?

So the ways that we make money, uh, I have a testing service in which we charge a daily fee. We also sell the robots, sell 3 to 4 a year. It's kind of a niche product. But what I've been doing lately is monetizing the data that I have. I've got 20 years of data of testing of golf equipment. And the reason that becomes critical is this: In a vacuum, it's really tough to tell what you're doing as a player. But if you're swinging a club, say from 10 years ago, 5 years ago, 1 year ago, this year, because I've tested it, I can tie my test data to your swing characteristics, and then I can evaluate both and give recommendations. And no one else in the industry can do that. So what we've been doing is monetizing that data to work towards more of a fitting profile in which we can generate results or recommendations that are much better than what's in the industry right now. In the industry right now, you hit some shots, you have someone evaluate them that is good but doesn't have the knowledge and the, the simple library that, that we have as far as all the equipment is concerned.

Okay, so who pays? Is it the end consumer or is it the pro shop?

It's a pro shop, it's a retailer, it's, it's whoever's trying to utilize the system to maximize their ROI.

Okay, and it's just the data. So I, as the end customer, show up to the pro shop, I swing on a virtual machine, right? And then with your data, uh, that you've sold to the pro shop, what recommendations will they give me?

So, so what they'll give you is— what makes golf unique is that every golfer's swing is different. Every golfer is unique. Even, you know, the best players in the world, they all have slightly different variations as to how they come into the ball. And those variations matter because golf is a game that even a slower swinging player, they're still swinging at 80 miles an hour. Pros can swing up to 130 miles an hour, and tenths of a degree difference in line angle, loft angle, face angle have dramatic effects. So what we're able to do with this data set is we're able to personalize your specific swing, analyze that versus what's out there, and then give you recommendations for your specific swing. There's a lot of information in the golf industry, but the information hasn't been tailored to the individual golfer. You know, my analogy is you can read something, you know, Online, you could see what's recommended, but you really— it's, it's the difference between getting a custom suit and hearing that this is the best suit out there, and you go in and it's off the rack, but your body might be completely different than, you know, what the bulk of bodies are, and that's how they came up with the conclusion.

So the machine would just tell me like, uh, aim more towards that direction, try to To use your hips more? Like, what recommendations would it give me precisely?

Really, really good question. So golf comes down to physics, and the physics are how the club comes into impact, where it impacts, and what is the face angle in relation to impact. And so what that means is golfers swing on a plane. They can swing outside-in or inside-out. Some planes are more efficient than the other. Some impact positions are more efficient than the other. Some face angles are more efficient than the other. So we collect all of that data and look at the totality and say, hey, you're 3 degrees outside in. If you come 3 degrees inside out and change your path with the same impact position, you can get 20 yards more distance. And oh, by the way, once you do that, you need a new golf club because you completely change your swing. And here's a new golf club with your new swing that can give you another 12 yards. So total, you can get Up to 32 yards extra distance by combining a lesson and equipment. We're in an age of massive technology. There's technology in every field. In sports, there's a huge infusion of technology, specifically in golf. The technology is there. What isn't there and what we are providing is the analysis layer. So, you know, there's these things called launch monitors that measure all of this information when you come in and hit a golf shot. These launch monitors are great, but without the analysis, that's the equivalent of me having an MRI machine and pushing the button. I'm going to have an idea what— your spine looks a little crooked, but that's about it. I'm not going to be able to analyze that because I don't have that sophistication. That's a lot of golfers when they look at these launch monitor data because golf is really complicated from a physics standpoint. What we're able to do is simplify that and do so in a way that is relevant and digestible to the golfer.

So you integrate with the virtual golfing software, right? Is that—

Well, we integrate with an analysis or a data capture software. So without data capture, we're just looking at a shot and trying to interpret it. But the data capture, that's what's really revolutionized the game. It's the same system. If you've ever seen an indoor simulator where you hit into a screen and the ball flies virtually, it's using the same technology. That's all data that is powering that. We're using the data differently. Instead of creating, you know, a good-looking shot that's flying down the fairway at Pebble Beach, we're taking all that data and saying, how can we make you a better player? How can we improve your equipment once you become a better player?

Okay, but I'm still looking at an interface, right? As the consumer, where do I get my suggestions? Is it with the screen on the virtual golfing thing? Is it the rep that's with me that's telling me something? Like, what's my interface? Is it a chat interface? And really, really, I can look and be like, oh, okay, I'm so confused about that.

Really good question. So, uh, for our first iteration that we're rolling out It's, uh, it's— this is a B2B play, so you always have to have someone who is an expert who can analyze or run this software because it's a little sophisticated. Our next phase of rollout is going to be more of a user— golfer, uh, consumer user-friendly that will be basically like an ATM. You'll just press a button, go to the next screen, press a button, have selections, and that will have a very gooey UI. that will be very accessible. For the first version that we're releasing for enterprise users, that's a little bit more sophisticated because they have a, you know, quite frankly, a better skill set than the average player, understanding terminology, understanding the physics. What they don't have, and this is what we provide, is, you know, this is the beauty of information now. We can give you a totality of a proprietary information source, as opposed to you can be the best fitter in the world, but your, your knowledge is probably going to be maybe 20, 30 clubs max. I can do that by a multiple of 10 or 100 and, and really expand the universe and allow access to a lot more information that makes you a better and more efficient fitter.

Okay, so in summary, right, like if I go to a pro shop, there's a rep with a computer right next to me, right?

Yep.

And he's telling, he's reading the data and telling me like, look, you should do this, you should do that.

Yep.

Based on this, you should go with this club.

Yep.

How far are you from just like a, the UX? That seems very doable to take all that data and just feed it to a chatbot and that chatbot would automatically send you recommendations of clubs to buy. and then integrate on golf simulators commercially, personally, right? Like integrate with the major software brands there and just give the consumer the, the right club and the right recommendations while they're just out there having fun on the simulator.

You got it, my man. You could be my PR guy. You're, you're, you're getting it. That's, that's what it is. What it— the ultimate goal is For the user, and this is what makes technology succeed, in my opinion. Technology succeeds when you don't have to think about it, when it just provides a solution. The classic company in this, without a doubt, that everybody follows and everybody models is Apple because their technology just works. You have no idea how it works, but it just works. Suddenly, it's integrated in your life in a way that it's making your life more efficient, more effective, And also more enjoyable. That's the ultimate goal, as you said, that this is all running in the background. As soon as you're ready— you're not going to buy a golf club every day, every month, but maybe you buy one every year. Maybe you buy a new ball every, you know, 2 to 3 months. Maybe you buy a new wedge. It's always in the background. So when you are interested or when you want to be evaluated, it can pop up and provide you that information.

Got it. Okay, so right now, yes, building that prototype is a priority. The, the cash cow of the company is like the, the existing model that you have with the Pro Shop. Is that growing? Like, give me a day-to-day in your CEO life.

So day-to-day right now, um, I'm partnering with a launch monitor company that, uh, I, I can't quite disclose all of the information right now, but here's what I've learned about business and What I've learned, you know, in my time in golf and technology, sometimes partnering and standing on the shoulders of giants is much better than doing it on your own. And taking someone who has a distribution network already in place and then being able to add a layer onto that that makes them a better player in the industry and also adds a value-added proposition that differentiates them from the marketplace is much more effective than trying to create something from scratch. So what I'm doing and what we're going to be rolling out in 2027 is a complete product. And you nailed it. You actually nailed the vision. And the vision is not having even a UI, not having to, you know, understand or work through it. It's having that information collecting in the background and then being able to generate that in a way that is very accessible to the user when they want to experiment with new equipment.

Right. Do you have a team to program that new app to life?

You know what's interesting? I'll tell you this. One of my barriers to entry in my whole career has been relying on others to execute visions that I've had. You know, I'm a small operator, I do well, but whenever I've enacted software engineers, whenever I've had graphic designers, web designers, I've always hit roadblocks because it's been very difficult. You have a vision as an entrepreneur, and getting others to see that vision and, more importantly, optimize that vision within a cost and timeframe. The last year, but 6 months with AI, has completely blown those barriers. It has never been a better time to be an entrepreneur. What I know about programming, you can put into a thimble, and yet I'm creating and doing things that would have required a team of engineers. I mean, just to give you an idea, the project that I'm working on right now, I, I have done 10 times what I had a team of engineers 3 or 4 years ago that took $500,000 and never came to market. It is It is the best time hands down in this industry if you are an entrepreneur to be able to create, without a doubt, because the tools are all there right in front of you.

Yeah, yeah, I fully agree with that. Tell me about that big robot of yours. What was that project about? Like, uh, was it a partnership as well? Was it yours?

Uh, that's, that's ours. So, so that, um, was born out of a commercial that we did, uh, called Rory vs. a Robot. And it was the first kind of viral hit that we did with a golf robot. Rory McIlroy is a PGA Tour player. He's the number 1 player in the world. And, uh, it was kind of a lighthearted European, uh, commercial. And it, you know, at the time it went viral. It had like 20 million hits. It was featured all over the world. And then we realized that there was an opportunity for entertainment, so we designed this mobile robot, and we've utilized the mobile robot. We made a hole-in-one in 2016 at the Waste Management Open. We've competed against Stephen Curry, who's an NBA superstar. We've competed against all of these athletes, and people are fascinated by robotics, and they're fascinated by golf. And when you combine the two, it makes for some real entertainment. And we have an audiovisual component that allows people to interact with the robot, and it creates a human-like approach to the robot. So we've been very successful in that from an entertainment standpoint. It's not a main money driver for us, but it's a great branding exercise that allows us to get our robotics into entertainment spaces and really kind of highlight what our skill level is.

Yeah, it's crazy ad. Like for the record, I loved it. I loved every part of it, especially the humor, right? Like the trying talking. Yeah, was so good. So well done. How much did you invested in that ad?

So we got paid for that, believe it or not. I mean, they they they paid us. You know who paid you?

The PGA?

The European PGA. So Sachi and Sachi was the ad company out of London. And they, uh, they footed the bill for the whole thing, uh, to promote the, the PGA. So it was an amazing— it was an amazing marketing piece for us. But yeah, we actually got paid to, uh, to, to do it.

Man, that's crazy. And the robot you owned, what's the cost of a robot like that?

We're probably at least, at least $1 million, $1.5 million into it, you know, through all the iterations. It's, it's a pretty cool piece of kit. It's, uh, It's powered by lithium-ion batteries, and so it's it's like the biggest remote control toy you've ever seen. You can drive it down a golf course. You can hit any shots on a golf course. It can putt. We went over to Korea during the pandemic and competed against Se Ri Park, who's one of the top female golfers in the world, and did a skills challenge. It's it's funny. It's it's. Every year, you know, we get 2 or 3 requests to do all these really cool things, usually with professional athletes or golfers, um, for, for content. And, you know, since the, uh, pandemic, golf has exploded. It's almost tripled in, in, uh, participation. And what happened was, which was really fascinating, nobody saw— golf has become cool again. And it became cool because You know, I call them the youngins, all the 20 to 30 set. They had nothing to do during the pandemic and they all took up golf and they all started playing golf and they all started recording content. And so, uh, to give you an idea, we did a segment for MrBeast that had 140 million views of, um, the robot, you know, versus a human. Uh, people are fascinated by the robots. They're fascinated by all robots, but especially a golf robot. Because it's so hard to hit a golf ball, and when you see it done well, it really is entertaining.

What about, yeah, other partnerships like that? Are you in charge of that, like reaching out to MrBeast or the PGA? Like, who is in charge of that, and how has that profited your companies over the year, the partnerships?

So the interesting thing is most of them find me. I mean, we're We're a very big fish in a small pond. We have we have a one-off product. No one else has anything like it. So we do market ourselves, but more importantly, whenever there's you know someone has an idea and we get pitched ideas all the time, and fortunately we are allowed to be selective because of that. The the one main partnership that I do have that is another kind of driving force for my business. I'm a contributor to Golf Digest. Golf Digest is the biggest media. Publication in the industry. And through that, I'm able to provide the same source of information that I was talking about for the fitting software to the end user via media. And so that's been really effective, not only from a financial standpoint but also from an information and marketing standpoint, to get the data out there and And to allow the average golfer to kind of understand what's going on, how the robot works, and more importantly, how it can benefit them. I love that.

Well, thanks for being on, Gene. Where can people find out more about you?

So you can go to golflabs.com, or one word, I'm @golflaboratories on Instagram. And, uh, My LinkedIn is at Golf Laboratories as well. And yeah, we're— we mostly deal with businesses, but we also deal with individuals. We also actually, believe it or not, we fit tour players as well. So we, we've got a wide array of specialties that, that we work on.

I love it. That was Gene and Charles for another