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Beating a Dead Horse -- Hillcreek
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<blockquote data-quote="Brandonm2" data-source="post: 282143" data-attributes="member: 2095"><p>Doc, the OVERWHELMING majority of seedstock operations in this country LOSE money! The average life expectancy for a seedstock operation is SEVEN years. Those that make money do a large part of their business selling high $$$ stock too those getting in the business that are doomed too failure. Granted, you are correct about advertising. Most farms you never hear of.....until they have their inevitable dispersal sale. But also by the same token you have to have enough volume too justify running an ad every month. IF you spend $45,000 on advertising and marketing you had better be moving AT LEAST ten times that in volume to swallow the advertising expense. I stand by my original point: seedstock do NOT have any intrinsic value above the price of commodity beef. The rest of it is ALL promotion. In college, I had a friend who had a reg. Charolais cow they paid ~$2000 for at a dispersal who earlier in her life had once sold for $110,000 cow. The hundrend thousand cow was a running joke. Nice cow (if awfully BIG), but nothing I couldn't purchase from a dozen Char breeders (at the time) for $2500 (OR LESS). Especially in the world of AI, today's $57,000 cow is tomorrow's old news. I don't doubt for ten seconds that some people CAN make money off of their $57,000 cow purchase; but I have a hunch that for every one that sells $400,000++ worth of progeny ten end up LOSING money. I think a lot of our skepticism is also based on who this is. IF LA4Angus or Jake or McGinley or SEC or Frankie or even Mntman had just bought a $57,000 Angus cow we would say congratulations and GOOD LUCK and assume that they have a plan. Hill on the other hand just went in and out of the Hereford business faster than most of us change boots.</p></blockquote><p></p>
[QUOTE="Brandonm2, post: 282143, member: 2095"] Doc, the OVERWHELMING majority of seedstock operations in this country LOSE money! The average life expectancy for a seedstock operation is SEVEN years. Those that make money do a large part of their business selling high $$$ stock too those getting in the business that are doomed too failure. Granted, you are correct about advertising. Most farms you never hear of.....until they have their inevitable dispersal sale. But also by the same token you have to have enough volume too justify running an ad every month. IF you spend $45,000 on advertising and marketing you had better be moving AT LEAST ten times that in volume to swallow the advertising expense. I stand by my original point: seedstock do NOT have any intrinsic value above the price of commodity beef. The rest of it is ALL promotion. In college, I had a friend who had a reg. Charolais cow they paid ~$2000 for at a dispersal who earlier in her life had once sold for $110,000 cow. The hundrend thousand cow was a running joke. Nice cow (if awfully BIG), but nothing I couldn't purchase from a dozen Char breeders (at the time) for $2500 (OR LESS). Especially in the world of AI, today's $57,000 cow is tomorrow's old news. I don't doubt for ten seconds that some people CAN make money off of their $57,000 cow purchase; but I have a hunch that for every one that sells $400,000++ worth of progeny ten end up LOSING money. I think a lot of our skepticism is also based on who this is. IF LA4Angus or Jake or McGinley or SEC or Frankie or even Mntman had just bought a $57,000 Angus cow we would say congratulations and GOOD LUCK and assume that they have a plan. Hill on the other hand just went in and out of the Hereford business faster than most of us change boots. [/QUOTE]
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