“Unlike most of the cattle business where cattle are sold primarily as a commodity, purebred/registered sales are a very distinct attempt to sell a differentiated product,” said Derrell S. Peel, livestock marketing specialist at Oklahoma State University. “Thus the producer must approach marketing in a completely different fashion than a commercial cattle producer.”
According to Peel, producers must understand the demand for their sales. The producers must know who the customers are for these cattle, what they value about these cattle and what needs to be done to make sure these potential customers are aware of the animals and the details of the sale event.
“Marketing via a production sale can mean you’re selling only your cattle or perhaps you’re cooperating with other breeders,” said Eldon Cole, regional livestock specialist at the University of Missouri extension. “Either way you need to have a plan in place well before the sale date.”
“A satisfied customer(s) will definitely make marketing easier and more effective,” said Whitney Whitworth, associate professor of animal science at the University of Arkansas at Monticello. “He or she will tell producers they know, show them announcements or get them on your mailing list. Previous customers will also help identify new customers.”
With cattle sales, reputation is everything, Cole added. “It can be a good one or a bad one, but it carries a lot of weight. Testimonials make prospective buyers more comfortable bidding as they know a respected person is after the same bull they were.”
When it comes to the seller having information about the cattle ready for potential buyers, they need to have as much as possible. “In fact, I don’t think it’s possible to have too much information,” Whitworth said. “Including, but not limited to: production data (birth, weaning and yearling weights, birth date, etc.) and EPD’s if they are available. Again, some buyers will be pros while others may have no idea what all those numbers on that paper mean.”
Cole added that, “if you’re a purebred breeder, this along with a three-generation pedigree is probably expected. Health management ahead of the sale should be outlined. Breeding soundness exams of bulls should be available to remove some concerns. Some classes of bulls nowadays need tested for trichomoniasis. Of course in most states a health paper should be available.”
During these economic times, Whitworth recommends that producers and sellers should keep in mind that everyone is in a tight place and go into the sale with realistic expectations of what the animals will bring and what buyers will be willing to pay.
“Producers should plan for reduced revenue or consider other ways to add value for customers,” Peel said. “This might include things like free delivery for some distance or perhaps more favorable financing arrangements.”
“If the animals are to be delivered, they need to be at their new homes in a timely fashion,” Whitworth said. “Most buyers aren’t buying for fun; they need that animal on their operation ASAP. Also the sale itself needs to be organized and flow well, in a timely fashion. The last thing you want is for a sale to take an extended period of time and for some buyers to give up and go home.”
