During his morning strolls around Twin Oaks Golf Course in San Marcos, Tom Kettering constantly sees the remnants of misfortune.

Proof of poor golf swings is everywhere: a yanked tee shot on the first hole, a sliced fairway wood on No. 2, a misjudged approach shot that flew off the club's toe and into the briars at No. 5. The proof is in the number of abandoned golf balls he finds -- about 125 a week, by his calculation.

Since the 69-year-old retiree isn't a golfer, the day's take never ends up his golf bag. But because he's a reseller of these stranded rolling rocks, cash does end up his wallet.

"There's always a home for them, even the ugly ones," said Kettering, who nets anywhere from 3 cents to $1 a ball in the secondhand market. "There are all kinds of one-of-a-kinds."

While Kettering will never become rich recycling golf balls -- he says he does it more as a hobby and to get some exercise -- he is contributing to a sector of the golf market that is booming, to the tune of $200 million annually.

According to GolfWorld magazine, more than 2.5 billion golf balls are lost in action each year in the United States. To put that in perspective, a ball maker at Maxfli once said 1 billion balls could wrap around the earth if lined up dimple to dimple.

The tally is based on rounds played -- 570 million, according to the National Golf Foundation -- and number of balls lost per round, which industry experts say ranges from three to six. Since industry reports indicate that golfers buy approximately 600 million new balls annually, that leaves the door wide open for the recycled market.

"The big manufacturers, to stay in business, they're consistently changing everything a little bit to keep the prices up high, and that will always create a market for us in the secondary market because people want to get a deal," said Chuck Patrick, co-owner of ADS Golf Inc., a used ball and custom club fitting shop in San Marcos.

The company began as a mom-and-pop operation in the 1990s, selling secondhand balls out of oversized cardboard boxes. ADS now services a wide cross-section of the industry, including driving ranges, golf course shops and Joe Golfer, who comes in looking for a discounted Pro V1s. Patrick also imports 75,000 blank white balls from China and sells them to companies in the custom-logo business.

He said ADS sells more than 350,000 balls a year.

"We can move every ball in here," said Patrick, who bought the business in 2001 and has since moved to a newer 2,700-square-foot facility off Twin Oaks Valley Road in San Marcos.

What's driving the market?

While most golf ball manufacturers cringe at the sight of their inventory being resold -- often at half the cost -- there are those who argue that golf ball makers, ironically, are helping drive the secondary market because of the technology behind the modern ball. Golf balls are being made better and, as a result, they're lasting longer.

"There's a lot of good product on the market today," said Dean Snell, senior director of golf ball research and development at TaylorMade-adidas Golf. "The performance of the golf ball has stepped up so much from 10 years ago."

But the Internet is likely the biggest reason for industry growth. A Google search for "secondhand balls" results in more than 2 million hits, with many Web sites claiming to be the No. 1 golf thrift store in cyberspace.

Robb Osinski is co-founder of Performance Indicator, a Massachusetts-based company that applies chemicals to new golf balls, causing a change in color and removal of all ball markings after prolonged exposure to water. It's an attempt to discourage recycled balls from penetrating the market and putting quality control back in the hands of ball manufacturers.

Osinski and his partner, Bob Winskowicz, started their business in 1997 and have seen the market explode over the past decade.

"The used-ball market is more sophisticated and is a greater competitive force than ever before," Osinski said. "When we started, there were zero used-ball entities on the Internet. In 1998, there were two. In '99, there were 25. Today, there are over 1,000. It doesn't take a brain surgeon to figure out this value proposition."

Although the Internet has raised the profile of the secondary market, its backbone is places like ADS Golf, with its reliable group of sellers arriving at the back door and loyal customer base coming through the front door.

On both sides, Patrick gets a good feel for the strength of the marketplace. He deals with about six individual resellers regularly because he knows they'll bring him plenty of premium balls, which "drive your profit in this business."

"They bring them in banana boxes and seed bags," said Patrick, adding that one reseller turns in 3,000 to 4,000 balls each month. "They even bring them in suitcases and trunks."

At the front of the store, the choices are seemingly unlimited. From a 35-cent "crystal" ball to a $2 Pro V1x, it's all there for the taking in clear plastic bins. High-end balls from Titleist, Callaway and TaylorMade are sold individually and by the dozen. Customers can buy a dozen Pro V1x balls for $28, which is $30 below the suggested retail price.

Deals like that keep Patrick busy.

"We get doctors and lawyers coming in here, guys who belong to Rancho Santa Fe Country Club and pay for a private golf membership, but they come over here to get their balls," said Patrick, a member of Escondido Country Club. "We also get a lot of seniors on fixed incomes, and juniors who can't afford to play new high-end balls. This allows them to do it."

Not a perfect system

ADS Golf, like most used-ball shops, categorizes its inventory into three tiers: premium, second quality and third quality. The quality of each ball is in the eye of the beholder. But Patrick has been doing this for so long that he can spot a like-new premium Pro V1 "from a mile away."

"It's an eyeball situation," Patrick said. "It's not a perfect system, but it's as close as you can get."

That imperfection is what irks many manufacturers about the secondhand market.

Snell, one of the engineers who developed the Pro V1, said there's a huge unknown factor with used balls. He pointed out that manufacturers spend millions of dollars and thousands of man hours in research and development on measuring and testing aerodynamics and velocity to ensure that golf balls fly the way they're designed to fly. Blemishes, scratches and even discoloration can negatively affect a ball's performance.

"We've seen balls drop 2-3 miles per hour in ball speed just sitting on the shelf for six to nine months," Snell said, pointing to moisture that penetrates a ball's cover. "If you find balls that are faded or look old, you're definitely giving up some kind of performance. If the paint comes off the golf ball, you've changed the aerodynamic properties significantly."

Added Osinski: "If you buy a dozen used Pro V1s, each ball is performing at different standards. That randomness really hurts the golfer. It's like Forrest Gump and his box of chocolates -- you just don't know what's inside."

Snell also said customers should be aware of balls that are repainted to look newer.

"That's not the golf ball that you think you bought," he said. "If someone throws one or two coats of paint on it to make it look good, there's no chance that ball has the performance it was built for. It can make the ball travel 7 to 10 yards higher, which is not good. With wind, it can result in a shot that's 20-30 yards shorter.

"You know when sometimes you see balls that nose-dive or do things that are out of the ordinary? That means you have unevenness on the ball, and that's all due to the cover."

Balls found in lakes are the biggest unknown, Snell said, adding that many may become illegal because of the amount of water weight the ball has taken on.

Patrick learned his lesson with lake balls several years ago when he broke into the business.

"The diver selling them would put peroxide on the balls so they looked bright white, but then in two weeks they were yellow again," he said.

Patrick said he doesn't buy balls from lakes anymore, and none are repainted -- only washed.

Most PGA Tour pros, Snell said, will keep a ball in play for only one or two holes. While most recreational golfers can't afford that practice, Snell cautioned that using discount balls affects their game more than they realize. Assuming golfers are trying to lower their scores, saving a few bucks on balls might not be worth it.

"Do you want to go buy something that's out of spec, flies higher, has a lower velocity, who knows if it's even legal, and performance is undetermined because there's nobody testing it, just to play a specific ball and save $20?" Snell asked. "I think that's a big mistake.

"If you're buying a dozen TaylorMade TPs or Pro V1s for $40, you're buying it for a reason -- the technology, the performance, it's been validated by tour players. Now if you walk into a shop and pay $20, you really don't know the value that you got. You don't know where it's been, how long it's been out, if it's been underwater for two weeks or two months. You have no idea what you're buying."

Others counter that recycled balls aren't as bad as manufacturers make them out to be.

"Technology has improved so much that (used-ball companies) can almost make them new again," said Dave Doerr, the director of golf at La Costa Resort and Spa. "I've hit reclaimed balls, and they were fine."

Snell said golfers looking to save money can purchase new balls that aren't as expensive as the top brands.

"At least then you know you're getting performance that is new and fresh, made to spec and not altered or reblasted," he said.

While many golfers agree that they're sacrificing performance by playing a used ball, some believe it's not enough to hurt their game or influence their buying habits.

"They're all about the same to me," said Bruce Prestwich, a 20-handicapper from Carlsbad. "I'll give it three of four nicks. It has to take a hard left turn on a straight putt before I'll say goodbye to it."

Prestwich, 73, estimates that of the 16 balls in his bag, only five are new. He rarely buys new balls and usually plays with ones he finds.

"I don't think there's much of a difference," said Prestwich, a member of the Encinitas Ranch men's club. "There are some guys who won't play anything except a Titleist. I've never understood that. I'll play anything. I have no shame."

While manufacturers might roll their eyes at Prestwich, guys like Patrick want to give him a hearty handshake. It's such golfers who are driving this business, after all.

"We're serving a niche that's not being met by the new ball manufacturers," Patrick said. "There's a bona-fide need for it."

Contact staff writer Marc Figueroa at marcfig@aol.com.

Here's a look at the new and used price of major brand golf balls, as sold by the dozen:

Ball&nbspNew*&nbspUsed**

Titleist Pro V1 $45.95 $26

Titleist Pro V1x $45.95 $28

Callaway HX Tour 56 $39.99 $27

Callaway HX Hot $24.99 $16.95

TaylorMade TP Red $39.99 $24

Maxfli Noodle $15.99 $9

Pinnacle $14.95 $6.50

*Golf Mart price

**ADS Golf Inc. price

The sorting game

The second-hand ball market isn't an exact science. So how do re-sellers determine a premium ball versus a low-grade one It's all in the eye of the beholder. But here are standard categories that many used-ball shops, including ADS Golf Inc. in San Marcos,use as a guide:

Premium: Look new with no cuts, scratches, blemishes or pen marks.

Price range per ball: 75 cents-$2

Second quality: Slightly blemished balls, may have slight scuff or some discoloration.

Price range: 40 cents-$1.50

Third quality: Primarily practice balls with "road rash" from cart paths, brownish in color with scuffs and blemishes.

Price range: 15-60 cents

*ADS Golf Inc. store prices