There is no real formula for calculating the true cost of using a certain bull. But make the wrong choice and it can be very costly for years to come. Even though the bull is only one animal he is 50% of the herd, and that makes any selection important.
From the standpoint of a seedstock producer, what increased value can a bull provide to seedstock sales?
From the commercial producer, the bottom line (PROFIT). What increased pounds of weight does it take to make up the difference on the price of the bull. How many seasons can you use the bull? Certainly more if you are using him as a terminal bull.
Seedstock producers range in size from small to large. If genetics are about the same or equal, does paying more for a comparable bull from a big name breeder make sense?
AI is a great way to go, but again look at what semen prices are. Many of the top bull are $30 or higher and if you have to purchase AI Certificates, factor in conception rates, labor rates, and a $4500 bull if he is really good isn't so expensive.
I have spoke to several extension people the last week or so and they are having a hard time with producers that are unwilling to pay over $1000 for a bull. They want top dollar for their calves when they sell, but are unwilling to pay to get the calves to command the price.