onecowfarms
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i have been approched about taking over our local sale barn i am sure there are a few that run sales barns on here what are the plus and minus on this biz thanks
running salebarn +/-
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johndeereboy
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Where abouts are you located? Have you seen the paperwork? (their tax statements, and profits)
I have always dreamed of running a salebarn. Sounds like fun
I have always dreamed of running a salebarn. Sounds like fun
onecowfarms1
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no not yet the guy who owns it just wants the fools that rent out
I don't know about the money side-
But I know you have to be a real good diplomat(at least around here).
Somehow you have to make the buyers feel like they are the MOST important link.
And at the same time you have to make the sellers think they are the MOST important link.
And on top of that you have to make the big players feel like they are more important than the little players.
And you have to make the little players feel like they are at least as important as the big players.
Talk about Soap Operas
But I know you have to be a real good diplomat(at least around here).
Somehow you have to make the buyers feel like they are the MOST important link.
And at the same time you have to make the sellers think they are the MOST important link.
And on top of that you have to make the big players feel like they are more important than the little players.
And you have to make the little players feel like they are at least as important as the big players.
Talk about Soap Operas
The sheer fact that you are asking about them is probably not enough knowledge on your part to jump right in.
You need to be a real cattleman, you need to know how to draw customers and buyers at the same time, you need to know how to how to market cattle. You need to be willing to sort cattle in the ring for the big buyers who want to take stockers out of a pen, and you need to be able to calculate on the fly whether or not a pair is worth more as a pair or split up. Whether a bred cow is worth more buy the head than weighed up for slaughter. Finding a balance of getting yours sellers their absolute top dollar and your buyers a "good deal" is what its all about. Knowing cattle markets and how they will flucuate with the seasons is also very important.
The owner of the local sale yard here is in the ring and he knows the markets and if things are going to low he will bid them up because he knows if there is no buyer out there that he can make profit himself but still get the seller a good price.
I am not saying that it cannot be learned but I am saying a good sale barn is not just some old cow sale. Make it a meeting palce where people will come and gather. Dont take in terminally sick animals. Know how to look at cattle condition and talk them up when they walk in a ring. Know how to MARKET CATTLE!!!
Ounce again I do not know your situation or even you, here are just some things that I think would help you run a successful sale barn.
Good luck, There is money it in I am sure, but you need to market and draw people. The more cattle people bring to you and the bigger you get the more buyers will come and the more money. knowing people around your area and the type of operations they run will help in talking them up, if a seller knows that you will talk him up and get him a premium then you will have his business forever.
You need to be a real cattleman, you need to know how to draw customers and buyers at the same time, you need to know how to how to market cattle. You need to be willing to sort cattle in the ring for the big buyers who want to take stockers out of a pen, and you need to be able to calculate on the fly whether or not a pair is worth more as a pair or split up. Whether a bred cow is worth more buy the head than weighed up for slaughter. Finding a balance of getting yours sellers their absolute top dollar and your buyers a "good deal" is what its all about. Knowing cattle markets and how they will flucuate with the seasons is also very important.
The owner of the local sale yard here is in the ring and he knows the markets and if things are going to low he will bid them up because he knows if there is no buyer out there that he can make profit himself but still get the seller a good price.
I am not saying that it cannot be learned but I am saying a good sale barn is not just some old cow sale. Make it a meeting palce where people will come and gather. Dont take in terminally sick animals. Know how to look at cattle condition and talk them up when they walk in a ring. Know how to MARKET CATTLE!!!
Ounce again I do not know your situation or even you, here are just some things that I think would help you run a successful sale barn.
Good luck, There is money it in I am sure, but you need to market and draw people. The more cattle people bring to you and the bigger you get the more buyers will come and the more money. knowing people around your area and the type of operations they run will help in talking them up, if a seller knows that you will talk him up and get him a premium then you will have his business forever.
One of the best sale barn operators I know never use the word DISCOUNT. There is no such word at a good sale barn sometimes cattle will bring less money than others but it had nothing to do with a discount. They just brought less money.
larryshoat
Well-known member
Very well said .Howdyjabo":11u8xx5b said:I don't know about the money side-
But I know you have to be a real good diplomat(at least around here).
Somehow you have to make the buyers feel like they are the MOST important link.
And at the same time you have to make the sellers think they are the MOST important link.
And on top of that you have to make the big players feel like they are more important than the little players.
And you have to make the little players feel like they are at least as important as the big players.
Talk about Soap Operas
Larry
Bullbuyer
Well-known member
Be honest, make sure the checks clear the bank and don't let anybody run over you! Keep the place relatively clean especially the restrooms and if you have food, make sure the kitchen stays in good order.
onecowfarms1
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pretty much everthing you have posted was my ides on running it real good diplomat(is probley the #1 thing and cleaning up the place we have had some long talks about how we would run it its down to just pulling the trigger thank for your insight into this
Caustic Burno
Well-known member
traks44":1335y9h4 said:
Amen on the Cattleman and thats all I have to say about that.
stocky
Well-known member
Traks says it very well.
There are two things that are above all:
Have access to money to buy every head that day if necessary. Buyers will sit there and try to break the market during a sale. The set in price is what you will pay and never back up and sell for less. If an animal is set in at a certain price and no one bids and the auctioneer backs off to a lower price, then the auction's word is no good. That owner will not have the trust of the sellers and the buyers will not bid, they will wait for a lower price.
Equally important is have BUYERS. BUYERS make the market. If you have BUYERS, you will be able to get the cattle. You will need to have buyers for every animal who are not present at the sale. The buyers at the sale outbid the ones you have in your pocket.
If you have the buyers, be prepared to run the country 7 days a week trying to convince sellers to bring their cattle to you. If you do not have the cattle the buyers want, you will not keep the buyers. Know what the buyer wants and make sure you have something there that he typically buys, even if you have to buy it yourself ahead of time and bring it.
Be prepared to deal with the sellers the way they want to deal. This may mean buying their cattle on the farm, guaranteeing them a set in price, guaranteeing them an average price on their check, providing free transportation for their cattle, selling their cattle at a certain time or in a certain manner, or a variety of other things. You are a salesman, you can negotiate with the seller in order to get the cattle in your barn and then, make sure you keep your word.
It is very time consuming, you will make money at times and you will lose money at times. There are alot of other things like service, cleanliness, the cafe, parking, etc. but you wont be in business long enough to worry about them if you dont have the BUYERS and if you dont have access to the money to handle the market.
Best of luck in your decision.
There are two things that are above all:
Have access to money to buy every head that day if necessary. Buyers will sit there and try to break the market during a sale. The set in price is what you will pay and never back up and sell for less. If an animal is set in at a certain price and no one bids and the auctioneer backs off to a lower price, then the auction's word is no good. That owner will not have the trust of the sellers and the buyers will not bid, they will wait for a lower price.
Equally important is have BUYERS. BUYERS make the market. If you have BUYERS, you will be able to get the cattle. You will need to have buyers for every animal who are not present at the sale. The buyers at the sale outbid the ones you have in your pocket.
If you have the buyers, be prepared to run the country 7 days a week trying to convince sellers to bring their cattle to you. If you do not have the cattle the buyers want, you will not keep the buyers. Know what the buyer wants and make sure you have something there that he typically buys, even if you have to buy it yourself ahead of time and bring it.
Be prepared to deal with the sellers the way they want to deal. This may mean buying their cattle on the farm, guaranteeing them a set in price, guaranteeing them an average price on their check, providing free transportation for their cattle, selling their cattle at a certain time or in a certain manner, or a variety of other things. You are a salesman, you can negotiate with the seller in order to get the cattle in your barn and then, make sure you keep your word.
It is very time consuming, you will make money at times and you will lose money at times. There are alot of other things like service, cleanliness, the cafe, parking, etc. but you wont be in business long enough to worry about them if you dont have the BUYERS and if you dont have access to the money to handle the market.
Best of luck in your decision.
