Cadi’s Most Frequently Asked Questions from Investors
Cadi has received many questions about our StartEngine raise and our efforts to become the leader of sporting goods retail. Named The World’s First Autonomous Golf Retailer by Yahoo! Finance, and most recently mentioned in Forbes, Cadi’s is already propelling towards our goal of raising the maximum to continue our mission.
Here we aim to answer several frequently asked questions to provide clarity regarding customer and investor inquiries to provide deeper insight into Cadi’s capital raise.
Why would a golf course want to have a Cadi Kiosk onsite?
Golf courses are always seeking opportunities to make additional revenue and offer a better experience for golfers. Dating back to the early 2000s, public golf courses have gotten out of selling golf equipment because they could not compete with the emergence of big box retailers followed by the internet.
It’s a pain to hold inventory and train new people to sell with limited resources. They are overwhelmed by their main business of selling rounds and golf balls. They don’t hold all club selections, and golf companies are not willing to offer price discounts based on the amount of products they sell.
What Cadi does is utilize the power of multiple golf courses to get better pricing. The service we offer is an add-on to the golf course. We can bring more golfers to the facility, and use our technology to promote other experiences on the golf course like teachings or fittings. We bring an expertise in logistics and can offer all of the selection needed to sell. It’s a perfect partnership between what the golf course offers and what Cadi can sell.
What clubs/products do you offer and what is the selection?
Cadi is a marketplace that offers an almost unlimited selection and spec of golf clubs. A user can access our marketplace 24/7 from their mobile phone or computer.
Anything that is not currently in the kiosk can be delivered to the kiosk or sent to the users address. Our kiosk is built modularly, and can be expanded to as many clubs as we need. Our initial kiosk focuses primarily on drivers and putters.
How does the kiosk work?
The way the kiosk works is the user has two options. They can shop our mobile marketplace and with our kiosk. Users who do not shop on the mobile app visit one of our golf courses with a kiosk, walk up to it and engage the touch screen. There users will see a catalog of available items. They can search for club types they want to try, and the kiosk will simultaneously use artificial intelligence to give different options to try based on their game and specs. The user chooses the time duration – It will start at six hours and goes to two days. During that time you can try and exchange the club for no cost. You could try every single club in the kiosk if you wanted.
How do you prevent theft?
The technology behind Cadi is patent pending. The IP is based on the way our products are tracked. The technology of Cadi is actually sensors on the club. When a user searches the catalog and finds a club they want to demo, you either sign in or create an account, and swipe your credit card. The kiosk then gives you the club, or clubs that you choose and you are free to take them for as long as you like. If you love the club you can keep it and you’ll be charged for not returning it. If you want to return it, you bring it back to the kiosk, put the club next to the screen and scan the tag. The welcome screen will then prompt you to put the club back into the locker, recognize the club has been returned, and the demo fee will be tracked through your account.
Is your autonomous technology going to take away jobs?
No. The golf courses are already limited in resources and people working the golf courses do not sell much product at all. We are actually creating jobs because there are a number of people that are needed to manage each kiosk territory. We think we are increasing traffic onto the golf course, which will add more lessons, fittings, and potentially could increase the hirings needed on a golf course. Cadi will add jobs, not take away any jobs.
Where are you installing kiosks and what is your growth plan?
Cadi launched the first version one kiosks for market testing in 2019, in Orlando, Florida at one of our partner courses, then in the summer moved to Southern California. We plan to relaunch in 2021 based on the markets we think have the highest potential, then plan on installing enough kiosks to compete in that chosen market. Another way Cadi will scale is by working with course management companies, who manage up to 600 different courses at a given time. Cadi has partnered with several golf management companies, and has 63+ letters of intent. Cadi plans to explore entertainment markets like Topgolf as well.
What brands do you offer?
Cadi works with the latest and greatest products from the top brands such as TaylorMade, Titleist, Cobra, Callaway, Scotty Cameron, Odyssey, and more.
Are there left handed options in the kiosks? Do you offer Extra Stiff Shafts? Do you offer women’s clubs?
First, our Co-Founder Matt Ahrens is left handed, so we always look after the lefties. One of our missions is to make the game of golf more inclusive, and because of our autonomous retail, we can include every golf segment and offer selection for them. On our marketplace and in our kiosks, we always make sure to offer the extra stiff shafts and other limited specs as well as women’s clubs;
When golfers try your clubs do they buy from the kiosk?
The goal of the kiosk and Cadi in general is to become the largest retailer in golf and sporting goods. We want people to buy products from our kiosk and online marketplace. During testing, 33% of users purchased the club they tried on the course. The power of being able to try on the golf course allows you to see actual results of every swing, so there’s a large percentage of instant gratification purchases!
You have two options when you use the kiosk. You can either purchase the club that you tried at a discounted price through our dynamic pricing system, or you can purchase a brand new one at full price.
What makes you different from other retailers? Are you offering more competitive prices than other retailers?
Cadi is one of the only brands that really allows you to try before you buy on the golf course. We offer a large selection with all specs. We use technology to make sure you’re getting the right club based on your skill level and specs. We offer expedited shipping to your address, and additionally offer the added convenience of location on your local course. Our demoed clubs are offered at competitive prices, resulting in a better customer experience all around.
What is equity crowdfunding? What is regulation CF?
Equity crowdfunding allows startups and private companies to raise capital from the crowd through the sale of securities like equity, debt, revenue share and more.
Anyone, regardless of wealth, can invest in private businesses, not just the ones trading on stock exchanges, and they can do so online.
Regulation crowdfunding allows companies to raise up to $1.07M each year, every year.
What is my expected Return on Investment?
Our goal is to pay dividends in the future however they will be based on the company’s future profits and success. During the immediate future all company profits will be used to fuel the company’s growth objectives.
Please look for updates in your email as well as on our website at cadikiosk.com.
What’s the investment and how am I involved in the process?
An early-growth company or startup raises capital on platforms like StartEngine. You invest in the business because you see a future where that business is profitable and successful.
Investing in startups means you’re getting in early before the company IPOs. If the business does well and grows, you can make money on your investment in the future.
When you invest in companies on StartEngine, you become a partial owner in the business.
We appreciate any and all feedback from investors and customers alike and encourage you to ask any questions you may have! We invite you to visit our website, our StartEngine page, or our Instagram, Facebook, or LinkedIn accounts to stay up to date on all Cadi progress.