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Lubbock, Texas | I think if one was to develop a tight network of 10-20 people moving from east to west a profit model could be developed (it will sound like multi level marketing at first, but if you have time to kill read on it is not)
I believe the person below was from PA and I believe you might be in the sunshine state......now you need one more person in a state on the east coast besides PA or FLA
so you have three people.......now each of them needs to find two other people in their "region" that has a close sale barn, but not the same sale barn as you and your two other "regional people"
so now you have 3 guys (or gals) in PA, three in FLA, and three in some other east coast state........each with a decent local sale barn near them
each of the nine people is looking to get either
A. 30 cows that are all very uniform or
B. 3 groups of 10 cows that are all uniform and that match up with the uniformity of some of the groups of 10 cows or the groups of 30 cows that the other 8 are running
you all try and get your feed and gain per day synchronized as best you can and then at the "time" you have 270 cows that hopefully you can group in 30, 45, or if you nail it 90 cow groups of uniformity
so basically you have 9 guys hitting their local sale barn each sale and trying to buy "junk" that will help fit into their goal of having 30 cows in a 10 to 30 head matching group along with trying to get into a larger aggregate grouping
if you were to get good at buying and feeding over time you could even be running 3 or 5 cow "groups" knowing that you are going to get those 3 in with a grouping from the rest of your buying group or coop or what ever you call it
then to carry it through further if you can get all nine "members" to get their cows to a central loading place and get them on the big rigs you then need to get in with someone that has a similar plan as yours, but on a larger scale.........someone that gets in 200 to 300 head of cattle that have large groups of uniformity in them and then runs 3 or 4 yards/pastures/barns with 200-300 head each
by having the ability to work with a large group that is buying very low based around predetermined group goals in very small lots (the cheap ones) and using that group leverage to cut out at least one round of "sorting and brokering" you have availed yourself of two additional avenues of profit other than feeding out cheap
the ability to buy the sort outs well below market at the sale barn and the ability to cut out one round of middle men when you move your groups...if you can further avail yourself of trucking cost savings, group/pooled buying of supplements/fencing/feed/cow handling equipment you have yet another area to "profit" over and above "feeding cattle"
if you can further expand the "group" over time to say 27 guys running 30 head each selling to two or three others that then all sell to one large guy or direct to feeders then you can further capture some of those middle man dollars on down the line
I think starting with 3 in a "region" then finding three more in another region and you would probably have little trouble finding the person to move cows to and if they are on their game they might even know the last three in a third region to work with and make his incoming loads more uniform
Edited by rodrod5 12/29/2011 16:10
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buying and selling calves-east coast
