Heather wrote:
" Well I'll take that kind of nothing every day,
thanks! Send 'em all my way!"
Heather, I'm with you! Also keeping in mind that a
Broker is able to fold together packages that include
his own stock. The availability of such
diversity/packages make for happier clients who return
for more.
Blue Skies
Jennifer Powers
Aero Ranch Suri Alpacas
Browns Valley CA
530-741-2376
--- Heather Zeleny <alpacatalk@westwindalpacas.com>
wrote:
> 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/Broker/General Good Guy Just Helping
> Out has a great deal
> 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 (18µ 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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