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Max price on a Bull for commercial use
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<blockquote data-quote="Brute 23" data-source="post: 1675243" data-attributes="member: 6291"><p>I approach things a little bit different. I take the number of cows he will breed annually, multiple that by the minimum and maximum years in service. Then take the cost of the bull, subtract it from the salvage price and divide that by the first part.</p><p></p><p>As a formula:</p><p>(PP-SP)/(CBA×Y)</p><p>($5000-$2000)/(50×5)</p><p>$3000/250=$12 per calf</p><p></p><p>The question is can you afford $12 per calf in your budget? As I said, be sure to run the highs and lows. You can also run the cost per calf of a 5k bull vs a 2k bull and ask yourself if the higher priced bull can justify his cost per calf vs the lower priced bull.</p><p></p><p>Good bulls actually have a pretty decent resale if you dont run them in to the dirt.</p></blockquote><p></p>
[QUOTE="Brute 23, post: 1675243, member: 6291"] I approach things a little bit different. I take the number of cows he will breed annually, multiple that by the minimum and maximum years in service. Then take the cost of the bull, subtract it from the salvage price and divide that by the first part. As a formula: (PP-SP)/(CBA×Y) ($5000-$2000)/(50×5) $3000/250=$12 per calf The question is can you afford $12 per calf in your budget? As I said, be sure to run the highs and lows. You can also run the cost per calf of a 5k bull vs a 2k bull and ask yourself if the higher priced bull can justify his cost per calf vs the lower priced bull. Good bulls actually have a pretty decent resale if you dont run them in to the dirt. [/QUOTE]
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