What should we ask for deposits for beef?

[Mark Reynolds]

I said space not the moon read real slow.

Sorry. I did actually notice that and should have taken that literally. Instead I interpreted 'space' as 'moon'. I made an assumption and I was wrong. I goofed. Sorry.

 

[Mark Reynolds]

Geez Chad, you ever proof read what you type?

Seems kinda like something I'd do. Case in point me thinking that space was moon on this thread.

 

[Caustic Burno]

Sorry. I did actually notice that and should have taken that literally. Instead I interpreted 'space' as 'moon'. I made an assumption and I was wrong. I goofed. Sorry.

No problem that's the same problem on here as with a text to someone.
That's the very reason when I was night superintendent in the refinery I called or had a face to face discussion before handing the written orders.

 

[Warren Allison]

You get as much deposit as you can. If paid 100% up front, tell them that paid-in-advance price is a discounted price.

 

[Rancher]

$300 nonrefundable per hanging half

 

[ClinchValley86]

I am gonna require one from here on out if I don't know them. Had 2 or 3 back out last minute on my last group.

Tis a very good topic.

 

[Mark Reynolds]

I foolishly don't require a deposit, but I know just 1 FB note and we would have it sold.

I wouldn't call it completely foolish. Requiring a deposit 'could' prevent a sale. There is merit to both requiring a deposit and not requiring a deposit.

You could do something like require a deposit for first time customers and waive the deposit requirement for repeat customers.

There is also the 'gut instinct' factor that you as the producer possess. If you 'know' someone isn't going to back out of the purchase agreement, don't charge them a deposit. If, on the other hand, you 'know' they are gonna back out, then ask for something down.

 

[ClinchValley86]

There is also the 'gut instinct' factor that you as the producer possess. If you 'know' someone isn't going to back out of the purchase agreement, don't charge them a deposit. If, on the other hand, you 'know' they are gonna back out, then ask for something down.

It should definitely weed them out.

 

[Travlr]

Umm... @Caustic Burno, I'm not sure if that was meant to be funny, a type "o", or 'let's see if anyone catches it'. The reason I'm saying that is we didn't put anyone on the moon until 1969. You said she died in 1966? That means that technically she was correct, for her time.

The first human went into space in 1961...

 

[Travlr]

In the past we haven't asked for deposits, but have had a couple people back out at the last minute, causing us to scramble to find new customers.
Generally, it's not a problem as we have dependable repeat customers, but it has happened a couple times.
Since we have had quite a bit of interest and several new customers we want to try to eliminate that issue.
Is there a customary percentage deposit that y'all ask for.

I've always sold my beef "on the hoof" so 100% paid before it goes to a processor. The people are informed of the processing charges and time line and know they will have the processing to pay depending on how they want their half handled. They are responsible for everything once the animal is delivered for slaughter. This gets them involved in the entire operation more, and gives them a feel for being responsible for their own outcome.

 

[DNelson]

In the past we haven't asked for deposits, but have had a couple people back out at the last minute, causing us to scramble to find new customers.
Generally, it's not a problem as we have dependable repeat customers, but it has happened a couple times.
Since we have had quite a bit of interest and several new customers we want to try to eliminate that issue.
Is there a customary percentage deposit that y'all ask for.

we require 50% down when we advertise and the balance five days before pick up at the processor. we also offer a bimonthly payment option too. You might continue with your repeat customers the way you have been with them and start requiring a deposit and balance payment for new orders.

 

[Mountaintown Creek Ranch]

Due to high retail cost of our product, and the high input costs, we sell by contract.
We are smaller operation so as soon as we steer a calf it's sold, deposit is made, payment plan setup for monthly.
We take it to processor, customer picks it up. By not handling the packaged meat I avoid any issues.
If they default on contract, there is no refund. We max at 15 steers to harvest...can't afford to have someone walk away.

 

[SmokinM]

Very good topic and I have learned the hard way. Got a bunch of requests for freezer beef when the Covid crazy hit. No problem, glad to help out. Started a group of steers, set up dates and had it all going good. We all know this isn't an overnight process. By the time kill dates come on the shelves are full at the grocery store and I got stuck with a few. Local guy is also buying fat culls at the stockyard and doing them cheap along with everybody else that has a cow does it now so the market is flooded and they are hard to move. Won't be playing this game again.

 

[Ky hills]

Very good topic and I have learned the hard way. Got a bunch of requests for freezer beef when the Covid crazy hit. No problem, glad to help out. Started a group of steers, set up dates and had it all going good. We all know this isn't an overnight process. By the time kill dates come on the shelves are full at the grocery store and I got stuck with a few. Local guy is also buying fat culls at the stockyard and doing them cheap along with everybody else that has a cow does it now so the market is flooded and they are hard to move. Won't be playing this game again.

That's always been my concern, I've never wanted to feed out very many afraid that will happen. We've been only been feeding out two and this year 3.
I'd like to do some more of it but afraid we'd get burned. Have to be pretty cautious in our area about who you deal with.

 

[Muletrack]

Have never charged a deposit, but should. Have sold to a couple of relatives on "time." Never a problem. But as Ann Landers said, "You can loan money to a relative or you can give money to a relative — the result is the same."

 

[Mark Reynolds]

Have never charged a deposit, but should. Have sold to a couple of relatives on "time." Never a problem. But as Ann Landers said, "You can loan money to a relative or you can give money to a relative — the result is the same."

And the result is that the relative was helped.

 

[Hpacres440p]

And the result is that the relative was helped.

Not necessarily

 

[Mark Reynolds]

Not necessarily

There is a whole lot of truth in that, unfortunately.

 

[tex452]

Yes, we upfront try to make them aware of what the cost will be within an estimated range. Even so we've still had a few be surprised, but we haven't lost out yet. So far family and family friends are the only ones we've had back out.
It is a lot of money, but cheaper in the long run. We definitely would not be buying from the grocery as much meat as we eat from our beef.
My father was born in 1925, and his parents in 1894, and 1903, I came along late in my parents life, but 3 of my grandparents were living still. I definitely had a different upbringing than most of my contemporary peers.

I learned something very important from my grandparents that helped me tremendously over the years, and without that lesson I wouldn't be where I am today, it's pretty simple, if you don't need it, don't buy it.

 

[kenny thomas]

I learned something very important from my grandparents that helped me tremendously over the years, and without that lesson I wouldn't be where I am today, it's pretty simple, if you don't need it, don't buy it.

I have found that if i see something and automatically want it, i need to wait a week and see if i have a need or just a want.