Can't make money at this!

[Nesikep]

Just found this ad, can't be making a whole lot of money at it. $4.25/lb for 18 month old angus steers, ~550 lb hanging weight
http://vancouver.craigslist.ca/rds/grd/4641346533.html

If it was 1200 lb live at $1.66 = $2000
550 lb * 4.50 = 2337- slaughter, cut and wrap... guaranteed well under $2000.. with cut and wrap prices around here I'm going to guess about $1700


Should make for some happy consumers though.

 

[Aaron]

Guys like that are either retarded or lying.

 

[AllForage]

Money can be made in that scenario. It's all about inputs though.

The struggle of the direct marketer today is opportunity lost. Calves at 6 months sell for Grand or more. Or you hold onto them for another year and a half to squeeze 700 more. Issue is where do you push the customer out by being more expensive than the store? And if beef goes down again the direct marketer looks like a genius again while most are back to complaining. Just remember everybody is a genius in this market who have cattle to sell. But who is the real genius when the market drops and one owns their customer and price?

Also local processing can vary from 350 per head to over 700 depending on area.

 

[Nesikep]

OK, so he may be getting a customer base which could be good if prices fall.

In the mean time, he's not doing anyone else much of a favor if he sells for not much over the price of ground beef, and it's not about inputs here, its about being ignorant of the market.

Truth be told, seems like no one has a deep freeze anymore anyhow, so they probably still are going to have people hum and haw and say it's not worth buying a darned freezer, or could you just sell me 10 lbs and deliver it?

 

[AllForage]

In a business viewed over long term owning customers MATTERS! Go ahead and try roller coaster ing folks with the market. That's not how relationships are held. direct marketing and opportunity cost is a struggle.

Beef is not like LP, lots of other options and one can live without it.

Like I said, market is high but it is not for every type of animal.

Who cares if he undercuts someone with his 2 head. I have Craig's ads in my area still at 2 bucks per pound hanging. Craigslist is no place to gauge any market or trend.

 

[Nesikep]

I've sold at competitive prices before, and with a superior product, customers here have *ZERO* loyalty, and as such I don't feel any obligation to them, and the same seems to apply to hay.. I've seen what other ranches sell as horse hay, and it isn't a shade of what I have, nor is it organic, yet if I want to sell any, I'm pretty much stuck at darned near the same price.