Fwd: [AlpacaTalk] Marketing 101
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Heather
Heather Zeleny
White Lotus Alpacas
(formerly West Wind Alpacas)
Eugene, OR
541.895.0964
Holistic Farm and Elite Fleece
http://www.alpacana
http://tech.
Begin forwarded message:
> From: Heather Zeleny <alpacatalk@westwind
> Date: August 1, 2008 11:18:08 PM PDT
> To: AlpacaTalk@yahoogro
> Subject: [AlpacaTalk] Marketing 101
> Reply-To: AlpacaTalk@yahoogro
>
> So after writing an off-list reply to someone regarding the stinky pile
> I stepped in recently, I finally figured out what my problem was.
> It'll
> take awhile to flesh it all out for everyone, so bear with me.
>
> So, say down on their luck Alpaca Breeder A has some alpacas to sell.
> Entrepreneur/
> to help out Breeder A. Broker will take Breeder A's alpaca/s on
> consignment. He will market them, keep them bred, feed and perform all
> necessary care for them on his farm. What is Breeder A's bottom dollar
> for alpaca X? Ok, we've decided that. So these alpacas actually have a
> greater market value, probably. The example put to me was 50%, or
> more,
> difference in those figures. So Broker works and works, breeds the
> open
> dam to his sire... includes another free breed after delivery of the
> cria.
>
> Finally a buyer comes along. Let's say he/she buys Alpaca X. Broker
> has
> invested so much time and effort, and services of his sire/s, that his
> final profit is next to nothing. But actually, he has seen 1/3 of the
> sales price of these animals go into his own pocket. Let's use easy
> round numbers, that were offered as an example. Breeder A wants no
> less
> than $10k for Alpaca X. Market value may be easily $15k. Broker
> markets
> Alpaca X for $15k. Makes sure she's bred (to his sire). He controls
> care and feeding, vet care, etc. Say we finally get a buyer, who can't
> afford more than $13.5k. I'm not sure how the contract reads between
> Breeder and Broker, but say Breeder actually receives the $10k they
> required. Broker then receives $3.5k for his efforts. Well that looks
> like a 35% commission to me. If he'd gotten he full $15k price, that
> would have been a realization of a 50% commission.
>
> Oh, he's given free breedings to his personally owned sire! Which he
> claims are worth $2k each! So now he's actually lost money because he
> gave away for free those two breedings to his sire. Not to mention all
> the time and effort of marketing this female alpaca. But he did get a
> check for $3500, no? I can claim that breedings to my own multi-blue
> ribbon winning son of a famous rose grey sire are worth a bajillion
> dollars, but until I get that for one breeding, it's not necessarily
> true. In fact, I'll happily take $500 per breed for each of my boys
> right now. Seriously.
>
> Gentle readers, marketing is part of the business. Farm visits and
> mentoring are part of the business. Free breedings are part of the
> business. Helping site barns and fencelines are part of the business.
> You don't lose profit my providing those services, you hopefully gain
> clients and partnerships. Hand-holding and answering frantic calls are
> part of the business. You never lose on good service.
>
> Some years ago, I sold a dam for a certain price. I included a son of
> hers (18ยต at 2 years and incredibly silky fiber) for free as a deal
> sweetener. We also included a free breedback for the dam. Did I lose
> money? Maybe, actually. :) But I have a client who still calls and
> recommends us to other breeders, everyone she knows. And how much work
> would that boy have gotten on my farm? Not much. Plus I would have had
> to feed him and scoop his poop for all these years. Did that free
> breedback cost us anything? Not really. So we've saved money actually,
> and lots of poop scooping. :) Plus I did reserve breedings to the boy.
> So everyone's happy.
>
> So that's my take on this issue. I don't want to upset anyone, but the
> math as explained to me by Broker Guy just didn't make sense. So I did
> the math and figures don't lie. How can a buyer pay $13.5 for an
> animal, seller gets $10k... broker gets $3.5k yet claims he makes
> nothing? Well I'll take that kind of nothing every day, thanks! Send
> 'em all my way!
>
>
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posted by Chaddo at 11:28 PM
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