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Cost vs Value
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Whiteboy
Reg. Jul 2012
Posted 2019-03-15 3:41 PM (#7425023)
Subject: Cost vs Value


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I recently saw a post on FB about a stallion owner explaining the costs of stallion ownership.  They were obviously frustrated about mare owners asking for free or discounted breeds.  While I fully understand the stallion owners frustration, I also wanted to touch on the other side of the coin.  Just because you spent "$10,000" on something doesn't mean it is worth "$10,000" to anybody else. Every stallion owners needs to know their cost, but nobody else really cares.  

If stallion owners aren't offering value that is consistent with their inputs, they wont be stallion owners for long.  Do the mare owners find value beyond what they are paying for a breed?  Also, a stallion owner that is unwilling to negotiate on a breed fee is walking away from a paying customer.  That is fine if the mare doesn't fit what you are trying to produce.  But to walk away from real money and a "partner" just because that mare owner is only willing to pay 50% of your listed breed fee...doesn't make very much sense to me.  

I see the same thing when pricing foals.  Everybody buying wants a discount, everybody selling wants a premium.  So before you "deserve" at least as much as you put into the foal, think about what you are really offering.  What has the mare done?  What have you done with the foal? Is the foal a real looker?

I recently walked from a purchase negotiation because the seller and I were both unwilling to find a price we were both happy with.  I couldn't understand why the seller was so unwilling to negotiate.  Perhaps the seller didn't think I offered what they felt the colt needed.  That is fine, but if it was only to hold out for a few a little more money, then I think they are crazy.  Often the relationship with someone that strongly believes in your program is worth more that the additional money.  This industry revolves around relationships, and when sellers (stallion owners & mare owners) make it only about the money, they may not be in business long.  



Edited by Whiteboy 2019-03-15 3:42 PM
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aqhabarrelchic1
Reg. Apr 2005
Posted 2019-03-15 3:48 PM (#7425025 - in reply to #7425023)
Subject: RE: Cost vs Value


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I saw that post and thought the same thing. It doesnt matter how much you spend on your stud if the public doesnt believe that they are worth the stud fee you will be sitting on a stud that no one wants to breed to. also if your stud isnt getting the mares you want you have to breed to what your stud is attracting or go buy a bunch of mares and prove them that way. and you dont have to pay 25k for a stallion prospect if you know what your looking at

 



Edited by aqhabarrelchic1 2019-03-15 3:51 PM
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MOGirl07
Reg. Feb 2012
Posted 2019-03-15 4:48 PM (#7425030 - in reply to #7425023)
Subject: RE: Cost vs Value



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I think this applies to selling older horses too. Just because you have all this money in them doesn't make them worth what someone is asking. We all have large vet bills, feed bills, hay bills, and I recently saw a post on FB (although I don't believe it was this one you're referring to, Whiteboy) basically stating that horses cost so much because people have so much money in them in care. Nope. You don't get to add up every cost you have in a horse and add it to their price tag when you go to sell. 

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Whiteboy
Reg. Jul 2012
Posted 2019-03-15 5:03 PM (#7425032 - in reply to #7425030)
Subject: RE: Cost vs Value


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MOGirl07 - 2019-03-15 4:48 PM


I think this applies to selling older horses too. Just because you have all this money in them doesn't make them worth what someone is asking. We all have large vet bills, feed bills, hay bills, and I recently saw a post on FB (although I don't believe it was this one you're referring to, Whiteboy) basically stating that horses cost so much because people have so much money in them in care. Nope. You don't get to add up every cost you have in a horse and add it to their price tag when you go to sell. 


Don't get me wrong.  I'd love it if it worked that way.  Could you imagine recouping all the feed and vet bills??  

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scwebster
Reg. Mar 2013
Posted 2019-03-18 1:12 PM (#7425164 - in reply to #7425023)
Subject: RE: Cost vs Value



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I'd like to read the post if someone wants to PM me and tell me where to find it.

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Nateracer
Reg. Feb 2008
Posted 2019-03-18 2:05 PM (#7425168 - in reply to #7425023)
Subject: RE: Cost vs Value



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Very true and agree with you.  

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Whiteboy
Reg. Jul 2012
Posted 2019-03-18 2:35 PM (#7425169 - in reply to #7425164)
Subject: RE: Cost vs Value


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scwebster - 2019-03-18 1:12 PM


I'd like to read the post if someone wants to PM me and tell me where to find it.


I'll see if I can find it.  

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MOGirl07
Reg. Feb 2012
Posted 2019-03-18 2:38 PM (#7425170 - in reply to #7425032)
Subject: RE: Cost vs Value



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Whiteboy - 2019-03-15 5:03 PM


MOGirl07 - 2019-03-15 4:48 PM


I think this applies to selling older horses too. Just because you have all this money in them doesn't make them worth what someone is asking. We all have large vet bills, feed bills, hay bills, and I recently saw a post on FB (although I don't believe it was this one you're referring to, Whiteboy) basically stating that horses cost so much because people have so much money in them in care. Nope. You don't get to add up every cost you have in a horse and add it to their price tag when you go to sell. 



Don't get me wrong.  I'd love it if it worked that way.  Could you imagine recouping all the feed and vet bills??  


Oh yeah, it would be lovely! But then, a 16 year old plus horse would go for a lot more than say 10 year old of the same caliber, and there would be no market for the older horses bc of the astronomically increased pricing. And we all know the laws of supply and demand.

 

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