The two most frequently asked questions are: what is “slide” and what is “shrink”. As you have noticed, the heavier the cattle are, the less they bring on a per pound basis. Since the “base weight” is just an estimate of what the cattle will weigh on the day of delivery, the slide is the method by which the price per hundred weight can be lowered if the cattle weigh more than projected at delivery. If the slide is 4 cents, then the hundred weight price will be reduced 4 cents for each pound the cattle average over the base weight. (Example: Cattle sell for $100/cwt with a base weight of 700 lbs and a 4 cent slide. On the day of delivery they average 710 lbs or 10 lbs into the slide. Ten pounds x 4 cents = 40 cents. One hundred dollars minus 40 cents = $99.60, so the new price on the cattle is $99.60 per hundred weight.)
The “shrink” is an established standard within the cattle industry to adjust for the stomach content in the animals when weighing. Since the buyer doesn’t want to pay for that, the actual weight of the cattle is adjusted by the amount of the “shrink”. (Example: A load of cattle are weighed with a 2% shrink. The “pay weight” will be 98% of the actual weight of the cattle.) All cattle sold on Superior are sold F.O.B. the seller’s farm or ranch, so the buyer will send his trucks to get the cattle. The Superior representative will coordinate with the buyer and seller to set up the delivery date and inform the buyer where to have his trucks and at what time.
And when they're given a dollar amount back, like they say 5 dollars back, what does that mean.