Re: [AlpacaTalk] Marketing 101
Heather wrote:
"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."
Actually your math is off a bit. If the broker makes $3500 off a $13500 sale
his commission percentage is 26%. If he is able to get the full asking
price of $15,000 he has a commission rate of 33%. Percentage is calculate by
taking the profit amount divided by the total then multiplied by 100.
I am not a broker nor have I used a broker's services, however, in both of
these instances the seller always got their asking price and it was never
cut into with this arrangement and the seller did not have to pay additional
stud services to make their female more marketable. I would not have a
problem with the broker making $3500 to $5000 off a sale as long as I got
the price I wanted and my animal sold. If it was easy enough to sell
animals that you don't need a broker, then most likely you and your
customers will benefit as there would not be a third party to compensate.
Patty Mattingly
Nobella Alpacas
"Royal Treatment Reigns"
Leonardtown, MD
(240)925-6959
http://www.nobellaa
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posted by Chaddo at 8:57 AM
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