I've found that for many people, consigning their sale animals is more comfortable (although probably not always more effective) than marketing them themselves. Many of the people who have gotten into the alpaca industry are people who didn't realize the degree to which marketing plays a role in a farm's success. Like you, they are people who love animals but who think of "selling" as something done by insurance or used car salesmen. (Picture here a heartfelt shudder!) Marketing is as important as husbandry when you're in the business of raising something that you plan to sell. However, many people are very uncomfortable with the marketing aspect, and end up wondering how to go about selling their production. So if you find you absolutely cannot (or don't want to) do your own marketing, here are a few thoughts:
I've taken many consignment animals, and frankly have sold as many (or more) consignment alpacas than my own. Most consignors have let themselves get into a position where they NEED to make a sale -- any sale -- to keep going, so they are willng to discount their stock significantly (which, of course, makes it easier for me to sell them). As a result, many of my sales have been of very inexpensive -- although not necessarily poor quality! -- consignment stock that earned me very little considering the work that goes into marketing. In a way, that works for me because it allows me to be an active marketer while developing my own breeding program! However, it's not necessarily the best thing for the consignor, which I always try to explain to folks who come to me to "fire sale" their stock. Neither of us make much money from this, but it does help keep consignors' herds from getting out of control size-wise.
You should understand that moving an animal usually (even under ordinary circumstances -- today may take longer!) takes about a year -- that's right, a year from consignment to sale! Marketing is much more than placing an ad on one of the Yahoo boards (although, of course, I do that as well and have had good results in some circumstances). Marketing means developing a web presence of some sort, but it must be a very visible presence. Marketing means having a good reputation for matching buyers with the right alpaca to get them closer to their breeding goals, not just the one they think they can afford. Marketing means keeping a good contact list that you can "work" when an animal is consigned (which includes other breeders, former clients, prospects who've been cultivating from shows or who've checked out other livestock on your sales list, etc.). Marketing means absolute honesty about the animals on your sales list (this is where most consignors get balky because they really don't WANT you to mention any flaws or disclose information that may be detrimental, and don't understand that it's the honesty and disclosure that attracts buyers in the first place. If you've ever received a Premier One catalog, you'll understand what I'm talking about here. I'd never do business with anyone else because PO tells you upfront the pros and cons of every potential purchase!). Marketing is hard work, but it can be creative and exciting when you find the right buyer for a listing!
I maintain an AlpacaNation website because it's easy to set up and maintain -- certainly easier than setting up one of my own, and relatively inexpensive given the degree of exposure I get. I like knowing that the people browsing AN are specifically interested in alpacas. It's not the only marketing website suitable, but out of my ~37 sales, I'd say three-quarters or more originated with an AN site visit. My farm is not on a highly trafficked highway, so I need the internet to draw people to visit us. I do lots of local/regional marketing as well, but I can't imagine how anyone sells regularly without a web presence (and given that the last 4 consignors I've dealt with had NO website, that is likely true). Most successful brokers are actively marketing on the internet because that's the broadest market for our production, consignments and services. I know that fees have risen in the past couple of years (I still charge only 10% but I know many brokers who charge 15 or 20%). However, since I currently have all I can handle on my consignment list (with 2 new suri herds being added shortly), I'm not planning on accepting any new consignments for quite some time. I prefer to keep my list to a manageable size, so that when a prospect calls, I'm not fumbling around in my memory wondering what the attributes of "so-and-so" are.
If you decide to consign any animals, make sure you have a clear arrangement with the broker so you know what your obligations are (gosh, if I could just get REALLY DECENT PHOTOS and large enough fiber samples, things would be so much easier!!!) Be sure you feel comfortable working with that farm, and make sure they have a good reputation in the industry, because they'll be "representing" your farm as well. Give them enough time to do their job, and work with them when they ask for resources. Work out a range of acceptable pricing for each animal you consign so the broker has some leeway to work with if he gets an inquiry. Make sure you're aware of the market values today and in the future, so you know you're neither short-changing yourself nor asking the impossible of the broker. Remember that a good broker is doing much more than just listing your stock on his/her website. He's essentially sharing his own contact and client list with you! If a sale is made, his client or contact becomes yours as well. That's nothing to sneeze at!
Judith Korff
LadySong Farm
Music to Your Wallet
Randolph, New York 14772
Cell: (716) 499-0383
From: Tom Talbott <ttalbott@maine.rr.com>
To: AlpacaTalk@yahoogroups.com
Sent: Sunday, June 28, 2009 4:05:06 PM
Subject: [AlpacaTalk] Brokers?
I know that this group is not for the selling of alpacas, but I would surely appreciate some advice on whether or not brokers are a viable option. I have 14 Suri girls, and 2 boys. While I enjoy so many aspects of this business, primarily the general care of the animals, I must reduce the size. Being up here in Maine, the market is very thin – selling is almost negligible with the exception of fiber boys here and there. Anyway, I could go on and make this a long email, but I'll just keep it to the main question – are brokers viable?
Any recommendations? Individual or group replies welcomed.
Thanks, Tom T
