Posted 5/7/2012 17:07 (#2373441 - in reply to #2373388) Subject: RE: Bull Prices - Please Explain
Thanks, I like your explanation, and it is the closest to what my understanding was that I have seen.
I have only been raising registered stock for about 4 years now, still with a commercial herd to take care. And I, like yourself, sale straight off the farm. When either my Dad or I was in the market for new herd bulls we always hated going and seeing all of these bulls that have been overfed their whole life only to get one home and watch him drop, what appeared, to be half his weight when he got to our farm. For that reason, I strictly raise my cows to be as productive as possible off of grass. That said, when I start figuring up the asking price for my bulls, I have always started with cull price, add on all expenses (AI, meds, etc.), and then add on my profit. Every time I have done this, I have never came anywhere close to the prices I see bulls going for in the sales around me. I have attributed that since I am new to this market that I will have years to build a reputation, and so far have just been happy with being able to make a profit and with having a satisfied customer.
So to sum up my view and your response. The value of the bulls you sale and the bulls I sale would be relatively comparable, the difference would come from marketing and reputation?
I know these questions may have seemed trivial to most people, but I am sure there are others out there who wonder the same thing I do, because I have had this same question almost every time I see a post on someone buying a bull.
With regards to the carrier issue, he is not a carrier of anything, and according to the Angus site, has had no carriers in his history. I know he was a steal the day I bought him, that was the reason I bought him.