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Saturday, August 02, 2008

Re: [AlpacaTalk] Marketing 101

Of course everyone's agreement can be whatever they decide upon. Out
here where I live, the standard is that the broker receives 10%
commission if the animal stays in the possession and care of the owner.
If the animal moves to the broker's farm, and then the broker feeds and
cares for the animal, the commission is then 15% to cover the broker's
additional costs and labor. Or, the owner pays agisting on their animal
and a 10% commission.

Of course the seller/owner will always have to approve any final sales
price, and then the broker receives their commission as a percentage of
the total sales price. So it's in both the owner and the broker's best
interest to get the highest possible sales price. In the
"wholesale/retail" arrangement, the owner gets nothing more then the
wholesale price, no matter what the retail price ends up being.

Your arrangement sounds like what I'm used to seeing. The buyer
approves the sale, receive full payment from buyer, they then pay the
broker their commission.

Heather

On Aug 2, 2008, at 10:38 AM, Gary Simpson wrote:

> Hi.
> I have a question. Is the broker just bringing you a buyer, or does
> he have the animals on his farm providing feed, vet care, etc...?
> I have a couple of consignment animals and provide that level of care.
> The agreement is that if an animal sells for asking price, I receive
> x amount of commission.
> If the animal sells for less, than the owner has to sign off on that
> and I receive the same commission percentage.
> The buyer pays the owner, not me. So the owner knows exactly what the
> animal is going for.
> I believe this sort of arrangement makes sure everyone is in the loop
> on what is being sold at what price.
> Does this sound correct to you?
> Gary

[Non-text portions of this message have been removed]

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