Free Alpacas Newsletter- How to Profit from Alpaca Farming

Friday, December 09, 2005

[Alpacasite] EXCELLENT marketing lesson from a llama clothing retailer

Visiting the site (http://www.altiplanoinsulation.com) is very
interesting and validates some points I've made before.

If you look at his retail prices and correlate with his shipping
weight, you discover he is getting near $100 a pound for llama
fleece. It's also worth noting that he has retail outlets, who and
where they are. They are all outdoor specialty shops in up-scale
communities.

This guy did what we should all be doing or pushing AOBA, AFCNA,
etc. to do. He used the SPECIAL properties of the fleece to fill a
market need that the market didn't realize was there until he TOLD
them about it. He also goes to great pains to explain WHY his prices
are high without actually saying his prices are high.

It would be nice if the people tending the machines to make this
product were Americans but that is a totally unrealistic hope. Debi
Garvin (message # 105306) laments that he can't get his product from
the US but NO ONE in the textile industry is setting up new
production in the US. The labor is simply too expensive. Everyone
that is starting something new is doing it somewhere in Asia, the
current most popular country is China.

How can we make the best of this reality? Assume the basic rules of
economics won't get repealed no matter how hard we wish for them to
be. We need to increase the WORLDWIDE demand for fleece while
simultaneously educating the end consumer of the advantages of
products based upon the unique qualities of the fleece. If demand is
greater than supply the price will rise. If people substitute alpaca
fleece for some other material, demand will increase. We have to
deal with the reality of a glut of $2 an ounce fleece.

How about educating people that alpaca fleece is super strong when
compared to many other fibers? How about educating them that because
of the hollow fibers it refracts light in a unique way and is one of
the most "lustrous" fibers available?

Gee, super insulating, super strong, super soft, super shiny, this
sounds like a space age material doesn't it? Why would anyone want
wool or even cotton if they are properly educated in the wonderful
space age material properties of alpaca fleece. I realize that it's
a little absurd to expect the world to immediately convert to 90%
alpaca sweat shirts at $100 a piece.

But how much softer and more wear resistant would a sweat shirt be
with 10% alpaca fiber in it?
Will a sweat shirt that is that much better sell for a high enough
price that will it more than pays for the few dollars of fleece in
it?
How many tons of alpaca fiber would be consumed if 20% of the sweat
shirts in the world had 10% alpaca fibers?

How much warmer and lighter would a bedspread be if it contained a
few ounces of alpaca fiber?
How many tons would be consumed if 10% of every bedspread, blanket
or comforter in cold climates used 4 ounces of alpaca fiber?
How many tons would it take to put 2 ounces in 20% of the gloves and
mittens sold worldwide?

How many tons of fleece would be consumed if 10% if every cold
weather garment, blanket, sleeping bag, etc. sold worldwide had some
alpaca fleece in it?

How many tons would be consumed if every textile product where
superior wear resistance would command a premium price had some
alpaca blended in?

We don't know the answer to these questions. Why not?

THE BIG LESSON FROM ALTAPLANO INSULATION IS, EDUCATE THE END
CUSTOMER WHY THEY ARE PAYING A HIGHER PRICE FOR THE PRODUCT.

How much or the budget of all of the alpaca and llama associations
is spent educating the end consumer? How many total individuals
worldwide are being reached?

In the short term we can eat the proverbial elephant "one bite at a
time" by educating everyone in the United States that alpaca fleece
is THE premier insulating fiber. Marketing trends in the US have a
way of expanding throughout the world quite rapidly.

Why are we arguing about how best to get people to come to our
ranches and buy alpacas when we really should be figuring out how to
make every person in the world that is considered middle class or
better, in their respective culture, consume 2 ounces of alpaca
fiber a year?

Greystone Manor
Gary Epp

From: "Debi Garvin" <debi@...>
Date: Fri Dec 9, 2005 12:52 am
Subject: Re: [Alpacasite] Fiber Industry and the Future Alpaca
Industry debgarvin
Offline
Send Email

For those of you interested there is a great place in the US called
altiplano
insulations. This company makes vests, jackets, capes, and all types
of heavy
duty outerwear for the outdoor hiking backpacking community. He uses
100% llama
and his site stresses the advantages of llama over down and
synthetic. He
evidently has a very good thriving market and the best news is that
most of his
customers are non- llama people. They are the outdoors bunch -
hikers, etc.
His prices may be considered high by some, but everyone I know who
has purchased
his vests ot jackets just love them. So, here is an example of a
very viable,
profitable business specializing in llama fiber. The only problem he
has is
that he can't get the quantity in teh US, so last I heard he in
importing
everything from SA. It would be worth it for the folks interested in
a
commercial fiber market to chjeck it out - at www.altiplano
insulations. com.

Debi Garvin
Pacific Rim Consulting, Inc.
Cabernet Creek Farms
Home of 2005 MW male and HW female Western Regional Grand Champions

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