Pricing bulls for sale

[tamarack]

I raise pb shorthorn cattle selling bulls to comercial herds how do other breeders price their bulls to sell off farm some i talk to say a good bull should be the price of 3 steers for yearlings.What would they price the 2yr olds? I look in the papers and the prices are any where from 1500 to 2500.any responses would be appricated . Tamarack

 

[Aaron]

I raise pb shorthorn cattle selling bulls to comercial herds how do other breeders price their bulls to sell off farm some i talk to say a good bull should be the price of 3 steers for yearlings.What would they price the 2yr olds? I look in the papers and the prices are any where from 1500 to 2500.any responses would be appricated . Tamarack

You need to adjust your prices for your local area, as well as your own break-even, in order to stay competitive. For a 2 year old, that may be anywhere from 1500 to 2500. I personally wouldn't sell a 2 year old for less than 1800, although you should be compensated for the risk and time you take in raising such age of bulls, so $2000 is a very fair asking price. :cowboy:

 

[Jeanne - Simme Valley]

We price our bull calves (still on the cow) at $1.50/lb plus $150. This is based on their weight on our scales after weaning & precondition.
Yearlings ready to use would be $1500 - $2500, 2 year olds $2000-$3500.
These would be top quality registered purebred Simmentals. We only keep about the top 5-10% of our calves as bull quality. We just cut 9 newborns Saturday based on BW.

 

[Roan]

Yes like Jeannie said they need to be good bulls, not just bulls that should have been steers. Also need to be TH free, birth weight also important in shorties. I have a good bull calf this year that is going to be a steer d/t birth weight. So price depends on what you have to offer.

 

[tamarack]

Yes i agree all the bulls are either tested or proved th free by pedigree and any over 100lbs are cut they are good bulls just depends what people want every bull is different as are the people who buy them.

 

[Willow Springs]

The only way to price bulls is to know what they cost you to raise. In my opinion you will erode your equity selling $2000 2 year olds. That is barely enough for yearlings in most operations. You have to use your own numbers, and they will vary depending on local feed sources and prices nut heres a general example from my area this fall:

Value of bull calf in Fall = 650 lbs @ $1.10/lb = $715
Vaccinations, tags, wormers, semen test = $75
Registration & Transfer costs = $30
Feed from Dec 1st - June 1st; will vary depending on when bulls are sold; Hay 3 cents/lb & Pellets 9 cents/lb bulls fed to gain 2.5-3 lbs/day = $210
Bedding (if needed) = $20

You are sitting at $1050 break even at this point. Other things to consider:

-Yardage & Labour; 2 year olds are especially hard on facilities. even if you only spend 15 minutes a day to feed 10 bulls and pay yourself $20 an hour the labour would equate to $90/bull (for a 6 month period) plus any tractor hours and hours you spend fixing things or handling the bulls.
-Advertising cost? If you have 10 bulls to sell, a line ad. in a local newspaper for a few months can easily cost $20/bull.
-Delivery Costs? Are you going to deliver; most people in our area would want a discount if they have to pick-up.
-Are you going to have any appreciation items or days for your customers?
-What about the bulls that don't make the cut after feeding all winter, either hurting themselves or failing semen tests or just not turning out they way you thought? They usually lose you money versus having sold them in the fall as a steer.
- What about opportunity cost or interest on the money that you are using to raise these bulls. Interest is pretty low right now, but even so most farm lines of credit are still 4-5%. Thats another $50/year for every $1000 you invest in the project.
-What about the cows that you have to raise the bulls? They aren't commercial cows form the auction market. How much do you need to make on top of each bull to pay for Purebred Cows?

Everything that I just put down has to be paid just to BREAK EVEN. Absolute bottom price on a yearling for me would be about $1800, but I need to average higher or else I should've just sold them all down the road in the fall and sold the PB cows as well.

 

[Frankie]

I raise pb shorthorn cattle selling bulls to comercial herds how do other breeders price their bulls to sell off farm some i talk to say a good bull should be the price of 3 steers for yearlings.What would they price the 2yr olds? I look in the papers and the prices are any where from 1500 to 2500.any responses would be appricated . Tamarack

IMO, if you're selling locally, you need to know what similar bulls are selling for in that area. It doesn't matter much what you have in them. The buyer doesn't care if you feed them from the day they're born or how much you could have sold them for as weaners. They will pay what they must to get the bull they want.

Pricing bulls is hard. We like to sell ours through auctions and let the buyers evaluate them and set the price. Usually we like that price; sometimes not so much.

 

[Willow Springs]

IMO, if you're selling locally, you need to know what similar bulls are selling for in that area. It doesn't matter much what you have in them. The buyer doesn't care if you feed them from the day they're born or how much you could have sold them for as weaners.

What do you mean it doesn't matter what you have in them? That is one of the most mind blowing statements I've heard on this site, and there have been many. If you sell at a loss why would you even be in the business? It's no wonder agriculture is in a shambles with business sense like that.