bigbull338
Well-known member
sale barn owners buying cows or feeder calves is nothing new.as long as they arnt just sitting back picking up bargins they know they can make money on.
A little dissatisfied with the sale barn today.
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Rafter S
Well-known member
bigbull338":19feyase said:
So they should just sit back and let someone else buy them for less money? Who does that help? And what's wrong with them buying cattle they can make money on?
bigbull338
Well-known member
the bottomline is all classes of cattle buyers are there to fill their orders as cheaply as they can.and saddly that gets done with some types of cattle unless some1 there really wants them.i havent been to more than 5 sales in 15yrs.but i used to go alot before then.wich ment i knew the buyers and what they bought.i could probly go to any sale barn now probly 5 times and id then know the buyers where and what they buy.all you have todo is sitt back watch and learn.Rafter S":ixh39k06 said:
M.Magis
Well-known member
I'm not sure I understand how that answers the question. What's wrong with a sale barn owner buying cattle he thinks he can make money on? Who buys cattle that they expect to lose money on?bigbull338":v7ba4niz said:
I think some owners buy a lot of the cattle that are down in the money to try and get them a little closer to what the good ones are bringing so they don't get customers complaining as much. At one sale one time a guy came in and started yelling and calling the owner a crook because he had bought the guys thin old breds a month earlier and then put them on a self feeder for a month and they made 600 per head. The guy thought the owner was cheating him out of his money.
skyhightree1
Well-known member
Ojp6":20y81rcy said:
Owner wasn't cheating him he could have done the same... This is where I would say Don't hate the player hate the game... IMO the barn owner did nothing but teach the fool how to not leave $ on the table.
Rafter S
Well-known member
Ojp6":344eqh7i said:
I've done business with people like that guy a time or two. Nobody is supposed to make money except him, and it makes him mad if they do.
Yeah everybody knew the owner did that with old thin cows and he usually kept them right there at the barn on good feed until the next special sale. Sometimes they made a bunch but sometimes they wouldn't gain much and would lose money. I think it was a matter of the guy not understanding that a lot of people don't want to take a risk on them old cows that are really thin. An old cow with some meat on it is a lot less risk.
You've got two sides to the coin. You gotta keep the buyers and the sellers happy. It has the potential to tick off both groups. Personally, it doesn't bother me. If I'm buying, I've got in mind what I'm going to pay. If im selling, I've got in mind what it should bring.
prairietrail45
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The barn owner near me will buy cattle sometimes too. He doesn't usually bid or buy the better cows, but if a decent cow comes in and no one is bidding where the ring man started her, he will start the bid. Sometimes he will buy the junk animals that the order buyers won't touch and he does sometimes buy calves, but again he is usually just bidding on the lower dollar animals most likely to help them bring a better price to make the seller happy.
There is another barn I go to every once in a while to watch, the owner will buy quite a few of the calves that come in and several of the cows. Usually they are poorer quality or just thin animals. I've gone back the next week and he will be trying to re-sell the same animals.
There is another barn I go to every once in a while to watch, the owner will buy quite a few of the calves that come in and several of the cows. Usually they are poorer quality or just thin animals. I've gone back the next week and he will be trying to re-sell the same animals.
denvermartinfarms
Well-known member
Nothing wrong with it, you wouldn't like a barn where the owner didn't buy.
Tim/South
Well-known member
The main sale barn I go to has a pretty neat deal. All year long the barn owner buys good looking heifers. He out bids the market to get them. He then places them with several local farmers to raise. In the fall he has a Keeping Kind heifer sale. He splits the profit with the farmer who tended to them. Also, if he is bidding on a heifer and another farmer bids in, he will back off and let the farmer buy the heifer. They are already above meat price and it makes the seller happy. Plus it keeps a lot of good heifers from the processor.
fenceman
Well-known member
Exactly, it benefits the seller, and thats whos paying the commission.Tim/South":pps1pt70 said:
denvermartinfarms
Well-known member
Most often people believe that if the owner is buying, then the auctioneer will try to miss other bids and or try to favor the owner who is paying him. To someone un educated about the Salebarn business that makes sense, but in reality it's not so, I'm not saying it's never happened, but it's not the way it works in genarel. If you feel that is happening, then say something or don't go back to that sale.
bird dog
Well-known member
I am mixed on the deal. I have seen it on packer cows where the owner was bidding and the auctioneer seemed to drop the hammer quicker when he had the high bid. In other cases it is much to the advantage of the seller that someone will put in a floor when nobody wants an animal.
A few years back I went to a large special sale that lasted way into the evening. Most of the crowd had left and there were not enough buyers left for the remaining cattle even though they were decent quality. The sale barn owner would not let them go off for less than they were worth. He had to buy most of the last 50 cows. I gained a lot of respect for the man that day and it changed my thinking on sale barn owners bidding on cows.
A few years back I went to a large special sale that lasted way into the evening. Most of the crowd had left and there were not enough buyers left for the remaining cattle even though they were decent quality. The sale barn owner would not let them go off for less than they were worth. He had to buy most of the last 50 cows. I gained a lot of respect for the man that day and it changed my thinking on sale barn owners bidding on cows.
1982vett
Well-known member
bird dog":36hg5z59 said:
When it gets down to two people...and one shakes his head no....why should he wait to "drop the hammer"? Cattle auctions are fast pace environment around here. The buyers are at a sale just about everyday. They don't need 5 seconds to decide if they want to bid again. :2cents:
denvermartinfarms
Well-known member
1982vett":7x18mcm7 said:
Exactly! Especially on killer cows, you pretty much always have the buyers for them and know about what kind of cows each buys, if there's 2 bidding and one drops out it's time to charge the cow to the other buyer. If your talking about take home cows where you may have people there trying to buy who aren't as experienced at the Salebarn, then there needs to be a look around there barn after the last bid to make sure.
Yeah kill cows they usually only have two or three guys to look at before they sell them. My dad used to buy for Cargill and JBS and a lot of the sales he went to it was just him and one other guy on everything but heiferettes. And generally everybody tries to get through them in a hurry. I was at a bred sale yesterday and they had a bunch of heifers and heifer pairs and the owner put a 3,000 dollar bottom on the pairs and 2,500 on the close up breds. I know some owners at smaller sales around home will come look at your cattle and guarantee you a price on them just to give you a good reason to bring them there instead of taking them to a big sale. I've seen an owner get hung with them because of a guarantee a few times.
a lot of time the barn owners have an order or multiple orders. sometimes the auctioneer will handle one or more of those orders from the block. also, if for example, there are some bred cows consigned and the seller has a floor of say, $2,000 on them, the auctioneer may bid against other bidders to get them to the floor to see where the live money takes them.
also, as denver mentioned, the horror stories about auction barns are comical. game get played at times at auctions, no doubt. that said, I've come to the conclusion that 95%+ of the horror stories about counterfeit auctioneers and games being played can be chalked up to spectators who dont know very much but think they know a lot and are confused by what they see and the speed at which it happens and sellers whose "fancy #1 feeder steers, just ask them, they'll tell you all about them and show you pictures" are really half way plain backyard knot heads that sold for exactly what the were worth which happened to be $25/cwt. less than the draft of truly good feeders ahead of them.
also, as denver mentioned, the horror stories about auction barns are comical. game get played at times at auctions, no doubt. that said, I've come to the conclusion that 95%+ of the horror stories about counterfeit auctioneers and games being played can be chalked up to spectators who dont know very much but think they know a lot and are confused by what they see and the speed at which it happens and sellers whose "fancy #1 feeder steers, just ask them, they'll tell you all about them and show you pictures" are really half way plain backyard knot heads that sold for exactly what the were worth which happened to be $25/cwt. less than the draft of truly good feeders ahead of them.
denvermartinfarms
Well-known member
Yes, your right JS. I often see people at sales who think they are seeing something wrong happening, just because they don't understand what they are seeing well enough to know what's acctually going on.
