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What is a bull worth
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<blockquote data-quote="Son of Butch" data-source="post: 1222177" data-attributes="member: 14585"><p>2.1 times fat steer price = $4,368 old timers use 2 fat steers 2080 x 2 = $4,160 </p><p>But it doesn't matter if the average is $3,000 or $6,000</p><p>What needs to be measured is the added value difference to me the buyer of the <strong>$2400</strong> added gross lifetime value.</p><p>Nobody should pay a $2400 premium today for a return of $2400 doled out over 5 years.</p><p></p><p>My point is my math says 10 lbs added per calf to me = is worth a premium of <strong>20-25%</strong> of the gross increase </p><p>Not 100% as the author implies.</p><p>I am conservative with my money, other producers should use whatever numbers work for them.</p><p><strong>Great article for Bull Sellers....for Bull Buyers....not so much.</strong></p><p>But if it gets you thinking, then it certainly is a very worthwhile article.</p><p>To me:</p><p>5 lbs added difference = $250 premium I can afford to pay for the bull.</p><p>20 lbs difference = $1000 premium + whatever average price you use.... be it 4,000 or 6,000</p></blockquote><p></p>
[QUOTE="Son of Butch, post: 1222177, member: 14585"] 2.1 times fat steer price = $4,368 old timers use 2 fat steers 2080 x 2 = $4,160 But it doesn't matter if the average is $3,000 or $6,000 What needs to be measured is the added value difference to me the buyer of the [b]$2400[/b] added gross lifetime value. Nobody should pay a $2400 premium today for a return of $2400 doled out over 5 years. My point is my math says 10 lbs added per calf to me = is worth a premium of [b]20-25%[/b] of the gross increase Not 100% as the author implies. I am conservative with my money, other producers should use whatever numbers work for them. [b]Great article for Bull Sellers....for Bull Buyers....not so much.[/b] But if it gets you thinking, then it certainly is a very worthwhile article. To me: 5 lbs added difference = $250 premium I can afford to pay for the bull. 20 lbs difference = $1000 premium + whatever average price you use.... be it 4,000 or 6,000 [/QUOTE]
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