What's an April 2012 SAV Final Answer angus bull calf worth?

[hevmando]

We have an April born angus bull by SAV Final Answer out of a New Horizon cow.  Was planning on selling him next spring at auction, but was approached what I would want for him this fall.  Never sold one before, how do you determine a fair price?  Will try to get pictures up if requested.

 

[goodnight]

We have an April born angus bull by SAV Final Answer out of a New Horizon cow.  Was planning on selling him next spring at auction, but was approached what I would want for him this fall.  Never sold one before, how do you determine a fair price?  Will try to get pictures up if requested.

You need to look at three things:

1) What is the market price for him right now if you cut him and took him to town; and,

2) What would it cost you to properly develop and market this bull;

3) What would he sell for in the Spring after properly developing and marketing him.

For me, I send all bulls that pass my eye test to a central bull test. By the time I feed them and everything they require, it costs me $1,200 as a development cost, give or take a $100. If I sold him at weaning, I would get $150/cwt, or just about, on a 6 weight, weaned calf. That is about a $900 bill in todays dollars, although it seems the buyers are keeping the price under $900 on the good quality middle weights, so you should expect to clear about $825. We get $2,500 to $3,500 at the bull test sale  we go pretty consistently, so it pays me roll the dice and try to hit that premium. But, with costs the way they are, and the price they bring now, there is no margin for error. So, you need to weight $825 now versus a $2,500 in the Spring after paying $1,200 to develop them. That should give you an idea of where your premium might be. FWIW, I will let anyone pick out a calf on the cow and I deliver after weaning for $1,250 to $1,500 depending on quality. I would use the AAA suggested terms and conditions (just attach them to a bill of sale), so that the buyer knows there is no fertility guarantee on an animal less than 12 months of age at the time of sale.

Good luck!

 

[grandchamp58]

You said if requested you would post pictures. Could you please i think it would help with your problem. Thank you

 

[Markspurebreds]

Depends on many things. Is he good? Is he registered? Does he have the growth or calving ease to make a bull? WhAt are the people using him for? Pics and weight would definitly help.

 

[hevmando]

Registration # is AAA 17263249, weighed 603# on September 23rd.  Was weaned August 1st.  Will work on pictures.  Thanks for all the input so far.  Placed 4th out of 9 in his class of bull calves at the MN State Fair open class show.

39-23 Angus Junior Bull Calf, after March 1, 2012 & over 4 months

1 706 17287966 3/9/12 Scharpe KMS Zohar 1616 James Scharpe Scharpe Angus Arlington, MN BC007
2 707 17288091 3/5/12 Scharpe KMS Zain 1615 James Scharpe Scharpe Angus Arlington, MN BC007
3 701 17254726 4/2/12 Buffalos Pro BN12 W.G.Jr., Troy, Jacob Schermer Clarion, IA BC176
4 700 17263249 4/12/12 RSKN Final Horizon Henry Schultz Faribault, MN BC153
5 703 17277368 3/14/12 RBC Mr. Factor 034 Ron Ochsendorf Riverbend Cattle Montevideo, MN BC093
6 709 17256251 3/2/12 Buffalos Pro T31 W.G.Jr., Troy, Jacob Schermer Clarion, IA BC176
7 705 17275335 3/13/12 YAF Payday 248 Dennis Youngerberg Youngerberg Springfield, MN BC146
8 704 17269043 3/14/12 LSR Ford 1205 Steve Ludwig Ludwig Shadow Ranch Richmond, MN BC147
9 708 17277367 3/2/12 RBC Mr Factor 030 Ron Ochsendorf Riverbend Cattle Montevideo, MN BC093

 

[hevmando]

more pics

 

[GoWyo]

Refer back to goodnight's comment.  Ask $1500 now with no guarantees or $3000 next spring, give or take $500 depending on your market, after a feed bill and breeding soundness exam with a fertility guarantee.

 

[hevmando]

Thanks for the all the input, got him sold this weekend!

 

[goodnight]

Thanks for the all the input, got him sold this weekend!

Congrats! Remember, this is all fun and games until you seal the deal. Putting that cash in the bank account is the bottom line, and the most important measure of all is profitability. Do yourself a favor now, figure out what it costs you to keep his mother and develop that calf. Then, determine what your net profit was on this calf. All the performance measure are important, but profitability is the most important measure of all. That can only be measured when the deal is done. If you want to grow this thing, figure out how to replicate this and how to keep that customer satisfied and coming back.

 

[DL]

Thanks for the all the input, got him sold this weekend!

Congrats! Remember, this is all fun and games until you seal the deal. Putting that cash in the bank account is the bottom line, and the most important measure of all is profitability. Do yourself a favor now, figure out what it costs you to keep his mother and develop that calf. Then, determine what your net profit was on this calf. All the performance measure are important, but profitability is the most important measure of all. That can only be measured when the deal is done. If you want to grow this thing, figure out how to replicate this and how to keep that customer satisfied and coming back.

Couple of things that I think need to be mentioned
1) If you (generic) sell a young bull calf to someone and come spring he doesn't pass his BSE it will be your fault (no matter the cause) and they will likely never buy from you again (unless you make it right, whatever right is) even if you sold him without a guarantee. His scrotum may have frozen to the ground because they don't bed but it is still your fault - you sold a bad bull. This is why I don't sell young bulls to people unless I know how they develop and care for their bulls
2) If you send your bull to a bull test he may get injured, he may break a leg, he may get pneumonia and not make weight, he may fail his BSE and therefore not make the sale - so while 3K in the spring looks great you may end up with nothing or selling him by the pound and losing money -
3) selling bulls is not for the faint of heart