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Feed salesmen can turn cattle feeders into millionaires

Faster horses

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This was sent to me in 1997 by my area sales manager. I saved it, though I never forgot reading it.

Feeding frenzy

(or why NOT to be known as a feed salesman) :D

by Mark Sip, Geddes SD--article in Feb. 1997 BEEF Today magazine

I hate feed salesmen. I know that sounds harsh, but to say it any other way just wouldn't be the truth. As you have already guessed, I am going to elaborate on why I feel this way.

First of all, I don't consider everyone whose primary source of income is a feed sales commission check, to be a feed salesman. In fact, some of my closest friends earn their living this way.

It would take more space than I'm allowed to accurately describe what a feed salesman is to me. Instead, I'll give you an example of a feed salesman in action. Besides, by exposing the following instance of inappropriate behavior, similar action in the future might be limited (but I doubt it--feed salesmen are trained to overcome adversity).

Many feed companies have provided their reps with computerized ration-balancing programs. The companies claim that these programs have safe-guards built into them to assure that the most efficient diet is always formulated. Past experience has shown me that giving a ration balancing program to a true feed salesman is similar to giving an Uzi machine gun to a 5-year old. (note from me--remember this article was written in 1997. :shock: )

The high corn prices experienced last spring (that would be 1996) and summer had every feedyard scrambling to figure out some way to minimize losses. Into this scenario came the feed salesman. He concocted a ration that replaced some of the corn with what I consider to be a fairly substantial amount of liquid supplement. Not 1.5 lb--not even 2 lb./hd/day. No Siree, Bob--that's small potatoes! The diet was formulated to provide each head FOUR pounds of liquid every day. Liquid magic practically guaranteed to turn closeouts from black to red. If you didn't think you were making enough money, you just weren't feeding enough of this stuff.

This formulation did reduce diet costs when they were calculated on an AS FED basis. However, because cattle consume dry matter and not as-fed pounds of feed, the only effective cost comparison is on a DRY MATTER BASIS. The DMB comparison showed that the diet providing a 4 lb/head/day of liquid supplement was more expensive than the diet that was already being fed. Golly, who'da thunk it?

What was the salesman's reaction to this boo-boo? He basically said, "Oops."
But given the depth of feeling with which he said this, it was obvious he was aware of the grievous error that he had committed and also realized that such errors have the tendency to turn cattle feeders into millionaires,
provided of course that they are presently billionaires.

But like I said, not everyone who makes a living selling feed is necessarily a feed salesman. Therefore, the issue before us is figuring out how to sort out the good from the bad and the ugly.

The procedure I'm about to describe can be used to determine if any given feed company representative is really a feed salesman. Like HACCP, I'll call it RACCP for Ripoff Advoidance Critical Control Points.

The underlying principle for this procedure was suggested to me by Vern Schiller , winner of the former NCA's Feedlot Quality Award in the farmer-feeder division for 1994. Schiller won this award because he tries to perform every job at his yard as though when he got done, he could hang up a sign that said, "Vern Schiller did this."

That is the same degree of commitment he expects from his employees, his nutritionist, his veterinarian and everyone else with whom he does business. Schiller fired a 'nutritionist' with whom he worked for several years because he flunked the RACCP test and was found to be a feed salesman. He provided only 'ho-hum' level of service and was taking Schiller for granted as a customer.

In case you missed it, that is the basis of the RACCP procedure; only work with those feed company reps who truly appreciate your business. While it's a simple concept, it's amazing how many reps are unable to accomplish this.

These, of course, are the real feed salesmen. Bear in mind, though, that a real feed salesman is fully capable of telling you how much he appreciates your business, but will not be able to show you how much he appreciates it.

When was the last time your present feed rep walked pens to check the consistency and texture of the manure? How closely does he or she monitor the nutrient levels of each ingredient being used? How long does it take them to return your calls? Is it within a day or two, or can the time span be measured using carbon-14 dating procedures?

As a continuation of the RACCP procedure suggested by Schiller, I think it is important that your feed company rep care enough about you as a customer to provide you with the right answer. When a feed salesman gives you the wrong answer to a problem you are having at your yard, you're the one who pays for this mistake, not him. Consequently, I think you should seek a second opinion to any and all recommendations.

It's a widely accepted practice for medical doctors to advise patients to get a second opinion on major medical issues. Why shouldn't something as major as the financial health of your feedyard undergo the same treatment?
It's not that hard to do.

Many feedyards make it a point to use feed from at least two different feed companies to have access to different points of view. In the event that a yard only wanted to use the product of one feed company, more than one representative from within that company could be utilized as a resource.
Local and state extension people are another information source that can be tapped.

Regardless of how you do it, get a second opinion because it's your pen of cattle and your money. If you're afraid of bruising somebody else's over- inflated ego, you have only yourself to blame if the level of profit actually achieved is lower than the level that was possible.

Until next time, you folks take it easy.

Mark Sip
 
He does get to the point, doesn't he?!!

I didn't see this one, but have read his thoughts on various, often 'touchy' subjects and really enjoy his points of view.

mrj
 
That's why feedyard managers use consulting nutritionists. These folks are not feed salesmen, but advice salesmen. They are measured on performance of the cattle and financial results. Kind of puts me in mind of the adage that states "Never ask a barber if you need a haircut". :D
 

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