On the ball: making a name with someone else's, Chris Knott knew he could lose his shirt if his business got too big for its britches.

• Author: Pace, Lee
• Position: FEATURE - Occupation overview

Four years ago--when $300 golf rounds, $500 hotel rooms and $2,000 business suits rarely raised an eyebrow--Chris Knott fidgeted in his chair when industry confidants suggested he raise the prices of the shirts, sweaters, trousers and other accouterments in his Peter Millar line of clothing. "We had a very nice $95 knit shirt, and they were telling me to sell it for $125, $130, even higher. They said we could get it easily. But I just couldn't go there. It was a gut feeling."

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Knott, 44, has learned to trust his gut over the years because it has been right more often than not. It led him to start his company and eventually leave a gig as sales rep for clothing maker Burberry Ltd. He lifted the name "Peter Millar" from an antique lawn-bowling ball his mom gave him because he thought it and the ball gave him enough of a story to hang a marketing campaign on, and he's built it into one of the hottest brands in golf apparel. At the PGA Tour's BMW Championship in Chicago last September, 12% of the competitors wore shirts made by Cary-based Peter Millar LLC, second only to Adidas' 13%, according to Los Angeles-based Darrell Survey Co.

Though basic economic principle says prices rise with demand, Knott's conservative approach has worked. After he started the business in his garage nine years ago, it grew to nearly $10 million in sales by 2005 and expects to gross more than $30 million this year. Peter Millar clothing is available in just over a thousand stores, with a goal of maxing out at about 1,500 by the end of next year. Its bedrock is colorful cashmere sweaters and knit shirts, and it's been expanding offerings--from boxers to formal wear--in hopes of claiming a bigger share of every well-dressed man's closet.

But unless you shop at Nordstrom, you won't find Peter Millar in your favorite department store anytime soon. Knott, who focuses on design, and CEO Scott Mahoney have turned down $3 million orders because they think golf shops and other specialty stores are their best bets to protect their margins, cachet and focus.

It's not a wildly popular strategy for coping with a weak economy, Knott admits. "In these tough times, to not take a $3 million order--nobody is doing that, that I know of." But company executives worry about what will happen to their brand and their cozy niche if they get into a high-volume slugfest. "if you live for the minute," Mahoney says, "and you take that $3 million order without understanding...