Auction

[Triple D]

On that TV auction on RFD, what are they talking about when they say something like "with a four dollar slide, " or a set dollar amount back, like seven dollars or whatever back on the lot.
Thanks

 

[Jogeephus]

The slide comes in when you are selling based on an average or guestimated weight. When it comes down to pick up and they weigh 850 rather than the 800 you bid on then it is adjusted downward to compensate for the additional weight.

 

[Triple D]

Ok, thanks. So if they're given a say 8 cent slide is that 8 cents per pound? And when they're given a dollar amount back, like they say 5 dollars back, what does that mean. I don't really care cuz I don't buy or sell that way, I'm just curious. I just haul em to the barn and they send me a check.
Thanks again

 

[Jogeephus]

Its kinda confusing at first but when you stop and think about it, it makes sense.

Here is an example of how it all works in a Superior sale. I think this will explain it better than I can.

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.

http://www.rfdtv.com/auctions.asp

 

[Triple D]

Thanks again, that post explains it all.

 

[irked]

good explanation from jogeephus for shrink and slide. for your other question:

And when they're given a dollar amount back, like they say 5 dollars back, what does that mean.

this applies to split loads of cattle that contain both steers and heifers. the selling price given is for the steers. the heifers go on the same load for x dollars below or "back" of the steer price. (a real aggravation if you're weighing on the truck because it requires an extra trip to the scales. in other words, weigh empty, load steers, weigh, go back to load heifers, weigh again.)

 

[Triple D]

Thanks irked, I was wondering about that but what you say makes sense. Thank you all for the explanation.