Consignment Sales For Beef Cattle Marketing

       When handled the right way one of the best avenues is Consignment Sales For Beef Cattle Marketing.

     For many purebred cattle producers, especially breeders with small numbers of breeding females, a consignment sale comprised of cattle from several different breeders is one of the better methods of obtaining a marketing outlet for their animals. It is almost impossible to hold your own production sale unless you are able to present at least 40 to 50 individual high quality lots on an annual basis. Therefore many individual breeders, a state or regional association or a consignment sale manager may offer potential buyers several animals from different consignors in a sale commonly referred to as a consignment sale.

     Consignment sales have been a major marketing avenue of the purebred beef cattle business for many years, but at the same time, consignment sales have often been criticized by consignors for too much sale expense, too little effort by the sale managers, not enough buyers and poor sale prices. Why the problems? If good breeders consign good cattle, then there should be adequate demand so that the cattle will bring their true market value.

Consignment Sales Advantages For Beef Cattle Marketing

     There are numerous advantages to consigning cattle to a well-operated consignment auction:

     1. Exposure ... Establishing a marketing outlet, offering the opportunity to participate in a sale when they do not have enough cattle to put on their own production sale. In addition, consignment sales allow a large number of potential customers the opportunity to appraise the offering of several different breeders in one location at one time.

     2. Potential generation of future private treaty sales as a direct result of the consignment sale exposure. It is not uncommon for people attending the sale to contact breeders whose consignment has been especially impressive for additional purchases.

     3. Establish market value for cattle at home ... becomes easier to ask a certain price for similar breeding and quality at home if the cattle have already brought the same price at public auction. This advantage should not be underrated, because it impacts the whole herd.

     4. Expand your marketing area ... Often sales will be made to customers within a 100 mile radius of your ranch. Consignment sales offer breeders the opportunity to expose their cattle on a limited basis to a larger market area with many more potential customers, anywhere in the country.

     5. Develop a reputation for quality ... a means to develop a loyal customer base as well as increase the number of potential customers who know that you have quality livestock and would be willing to purchase cattle from you in the future, possibly at your first production sale.

     Many past consignment sales have not lived up to their expectations.

Why?

     A poor consignment sale is usually the direct result of poor planning by the consignors trying to market cattle they have culled from their herds and cattle in poor marketing condition. Also poor advertising and merchandising effort on part of sales managers and consignors alike. Just not getting the job done properly! Consignors often think the only thing they have to do is consign their cattle, show up at the sale and the cattle will bring top dollar. It just doesn't happen that easily and very seldom does a consignment sale handled in such manner have good results. If conducted properly, consignment sales are valuable, and often necessary, marketing tools that should be used by all breeders, breeders with small herds as well as breeders with large herds that wish to expand their market.

     The main ingredient of making Consignment Sales For Beef Cattle Marketing a real success lies with the individual consignors for the most part. Good Cattle, Good Grooming, Good Condition and Good Pre-Selling will make it happen.

     Some things a breeder can do to insure that Consignment Sales Add Quality And Value For Beef Cattle Marketing.

  1. Sell only the cattle you would want to buy yourself.
  2. Have the cattle in good condition and presented to their best by washing and clipping. Show prospects are best marketed as halter-broke.
  3. Provide sale managers and prospective buyers with all the facts on your lot(s), including pedigree, photos, weights and measurements, breeding information and dates.
  4. Make phone calls and write letters to breeders who have purchased from you previously or who have expressed interest in your program. Tell them what you have, when the sale is, etc.
  5. Have health papers in order. Females should be pregnancy checked and bulls fertility tested.
  6. Make sure tattoos are legible before traveling to the sale.
  7. Support the sale. Be a participant and purchase if there are animals you can use in your program.
  8. Guarantee your product. Stand behind what you sell and make integrity part of your reputation as a breeder.
  9. Follow-up with buyers of your cattle either through written or verbal communication.
  10. Start planning for your next consignment offering.

     You should strive to always do your part and not wait for someone else to do your promotion for you. Seek advice but be responsible for all the followup work.

 Beef Cattle Consignment Sales Possible Downsides

 

 Red Beef Cattle Barn