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Bull price reasoning
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<blockquote data-quote="Angus Cowman" data-source="post: 622760" data-attributes="member: 8829"><p>the formula I have always used is </p><p>evry calf that bull throws is worth $50 so if I breed 25 cows per yr and use that bull for 4 breeding season </p><p>so it goes like this $50x25= $1250 pr yr x 4yrs =$5000 </p><p>I count the salvage price say $1500 as the up keep and maintence on that bull for 4yrs </p><p>I also lease some of my bulls out and I get $1200 for 90 days use so for a 4 yr period that is $4800 that bull didn't cost me anything I actually made money on him </p><p></p><p>$50 x25 hd =$1250x4yrs = $5000 +$4800 lease = $9800 +$1500 salvage =$11300 -$5000 purchase price=$6300 return on investment </p><p>this is based on purchasing a bull for $5000 the $per calf doesn't change if you give $3000 for the bull so if giving less you actually make more if you buy a quality bull </p><p></p><p>I have seen and my bull lease customers have seen a minimum increase in weaning weights of 50lbs and I have seen carcass premiums on the rail of over $$100 per hd </p><p></p><p>I run commercial black cows and I have no problem giving $5000 for a bull if I can see the returns on him a good bull will more than pay for himself even if your cows are not top end cows that bull should increase your profitability in their calves </p><p></p><p>I have one customer that buys my cull cows ( culled because of not fiiting my breeding window not because of inferiority) and he leases my bulls</p><p> with my bulls and his cows he seen a increase of 50lbs at weaning </p><p></p><p>with my cows and my bull he seen a increase of 50lbs of increase over his cows and my bulls </p><p>so it is easy to see that my bulls will work out at the prices I give</p></blockquote><p></p>
[QUOTE="Angus Cowman, post: 622760, member: 8829"] the formula I have always used is evry calf that bull throws is worth $50 so if I breed 25 cows per yr and use that bull for 4 breeding season so it goes like this $50x25= $1250 pr yr x 4yrs =$5000 I count the salvage price say $1500 as the up keep and maintence on that bull for 4yrs I also lease some of my bulls out and I get $1200 for 90 days use so for a 4 yr period that is $4800 that bull didn't cost me anything I actually made money on him $50 x25 hd =$1250x4yrs = $5000 +$4800 lease = $9800 +$1500 salvage =$11300 -$5000 purchase price=$6300 return on investment this is based on purchasing a bull for $5000 the $per calf doesn't change if you give $3000 for the bull so if giving less you actually make more if you buy a quality bull I have seen and my bull lease customers have seen a minimum increase in weaning weights of 50lbs and I have seen carcass premiums on the rail of over $$100 per hd I run commercial black cows and I have no problem giving $5000 for a bull if I can see the returns on him a good bull will more than pay for himself even if your cows are not top end cows that bull should increase your profitability in their calves I have one customer that buys my cull cows ( culled because of not fiiting my breeding window not because of inferiority) and he leases my bulls with my bulls and his cows he seen a increase of 50lbs at weaning with my cows and my bull he seen a increase of 50lbs of increase over his cows and my bulls so it is easy to see that my bulls will work out at the prices I give [/QUOTE]
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