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Bull price reasoning
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<blockquote data-quote="Willow Springs" data-source="post: 623926" data-attributes="member: 9002"><p>When looking at what I will pay for a bull I just follow a formula:</p><p></p><p>$2000 purchase price-1200 salvage+1000 upkeep=$2800/(3 years x 30 calves/year)= $31/calf from the bull</p><p></p><p>$3000 = $42/calf</p><p>$5000 = $53/calf</p><p>$10,000 = $109/calf</p><p></p><p>Basically I do this to remind myself that really there is very little difference between a $2000 bull and $5000 bull when you break it down per calf. In our country $2000 bulls are usually bottom end and the $5000 might be the sale topper with $3000 being about average. Over the long run the $5000 bull only cost you $22 per calf more, and if you do some homework will probably add more value than that $22. This is especially true if you have a Purebred herd; sons/daughters from the better bulls are hopefully worth more, you may be able to re-market the bull as a four or five year old for more than cull price, etc.</p><p></p><p>There is more risk when you buy the more expensive bull (death, injury, not as good a bull as you thought), but buying bulls becasue they are cheap won't always be profitable either. I do agree that you can find some very good bulls by looking around at the smaller breeders herds for very reasonable prices; flashy promotion costs money.</p></blockquote><p></p>
[QUOTE="Willow Springs, post: 623926, member: 9002"] When looking at what I will pay for a bull I just follow a formula: $2000 purchase price-1200 salvage+1000 upkeep=$2800/(3 years x 30 calves/year)= $31/calf from the bull $3000 = $42/calf $5000 = $53/calf $10,000 = $109/calf Basically I do this to remind myself that really there is very little difference between a $2000 bull and $5000 bull when you break it down per calf. In our country $2000 bulls are usually bottom end and the $5000 might be the sale topper with $3000 being about average. Over the long run the $5000 bull only cost you $22 per calf more, and if you do some homework will probably add more value than that $22. This is especially true if you have a Purebred herd; sons/daughters from the better bulls are hopefully worth more, you may be able to re-market the bull as a four or five year old for more than cull price, etc. There is more risk when you buy the more expensive bull (death, injury, not as good a bull as you thought), but buying bulls becasue they are cheap won't always be profitable either. I do agree that you can find some very good bulls by looking around at the smaller breeders herds for very reasonable prices; flashy promotion costs money. [/QUOTE]
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