It depends on how seriously one takes the sport.
Back in the day I spent quite a bit on tennis racquets. To the uninitiated one racquet looks and feels pretty much like another but when you factor in things like string size and characteristics, stiffness/flexibility, balance, size of sweet spot, and several other characteristics the difference is huge. A $50 racquet from the rack at Wal-Mart vs. a $500 one from Tennis Warehouse can mean a difference like night and day. They may LOOK similar but the resemblance ends there.
I have no doubt that those differences exist in golf clubs as well. But my game would have to be significantly better than it is, before more expensive clubs would be of any significance at all. Besides I've gotten three holes-in-one with a 7-iron that was part of a $250 set I purchased some eight years ago. I'm a believer.
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