Cadi's Strategic Partnership with the City of Seattle: Unlocking Prosperity

Seattle holds a special place in Cadi's heart. The decision to partner with the City of Seattle signifies an opportunity that could potentially benefit us all. With a population exceeding 3.8 million people, Seattle and its surrounding counties form an economic powerhouse. What sets Seattle apart is its unique blend of golf courses and the city's unwavering commitment to parks and recreation.

The Seattle market is predominantly overseen by two entities. First, there's Premier Golf Management, a subsidiary of Troon, and second, Oki Golf, a management company founded by a former Microsoft employee. Premier Golf expertly manages 11 courses, including the five that serve Seattle and Bellevue exclusively. These five courses alone provide Cadi with the means to fulfill orders for the 2.3 million residents of Seattle. Such an opportunity, where we can effectively penetrate an entire market through just two relationships, is indeed exceptional.

Success in Seattle carries even more significant implications. It opens the doors to 700 additional courses within the Troon network. As we speak, our second kiosk is en route to the area, underlining our commitment to this thriving region.

However, our introduction to the Seattle market has not been without challenges. We find ourselves battling 25 years of entrenched purchasing behavior at golf courses nationwide. The retail experience at golf courses, including Seattle, has been nothing short of toxic. Public golfers seldom visit the course to make purchases. There's a palpable lack of trust and comfort in both the facilities and the staff.

Why is this the case?

Lack of Consumer Trust: Prices are perceived as exorbitant due to the sale of overpriced golf ball sleeves, tees, and gloves. Disconnect from e-commerce and a reluctance to offer discounts have eroded consumer trust.

Inadequate Staff and Inventory: The overall experience falls short, with a dearth of attentive staff and limited product selection. Golfers seek a sense of comfort that is often missing.

Golfers Come for Golf and Fun: Golfers predominantly come to golf courses for practice, leisure, and the joy of the game, not necessarily to buy clubs. Shifting this mindset requires education and time.

Changes in Golf Brands' Approach: Original equipment manufacturers shifted their support towards big-box retailers, transforming many golf courses into fitting models. Public courses found themselves at a disadvantage in this changing landscape.

None of these challenges are new or surprising to Cadi. We're determined to rewrite this narrative, and many golfers have already experienced the difference we bring. We stand apart from traditional pro shops by focusing on consumer education. Since our launch, it started slow, but has seen modest uptick, with 15 users in the past week.

One of our primary challenges is encouraging users to utilize the kiosk as intended. Most users tend to select a driver and unlock it for a 6-hour trial but often do not exchange it to try different brands or specifications. This leads to lower sales conversions and an overall non-competitive experience. Most users do not know you can purchase the club at a 30% discount. In fact, we do no care if they buy or not. We are seeking usage.

To address this, we are revamping our email messaging and introducing test messaging to create a more interactive user experience. We remain committed to making progress and continuous improvement.

As always, Go Cadi!

Tyler G

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