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the $150,000 bull ... a deal for you !!!!

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Hay Feeder

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Learned that one of the top selling bulls this year is being sold before a bull sale. It only costs $7,500 for your share of THREE PERCENT ownership. For 20 three percent shares this would be selling the yearling bull for $150,000 for 2/3 interest. I would not want to ask what the other 1/3 is worth. But realy what does one do with three percent of a bull. lol :?

I am assuming that 20 people will buy into him. Also learned another bull is being promoted simiular but ranch manager is tell prospective buyers that they get their share of semen sales minus collection and advertising costs..and his ranch handles all semen calls and sales..So the operation gets bascially free advertsing for all of their bulls..paid by the investors in each bull they sold interests in... :wink:
 
back in the day when Charolais cattle were hot ...a heard a man turn down 1 million dollars for a unproven bull...so he sold it that way and made 3 million...and it turn out to be only used in those herds that bought in....Never heard of it after that even in sales no offspring were sold
 
We hear of big companies and big banks givig their CEOs large million dollar salaries. The same deal here! The name on the letterhead.
 
You gotta hand it to the people who market cattle that way. They can make huge amounts of money that way and still own the majority share of the bull. If I was in a position to sell cattle that way I would be all over it. I dont think I would want to be in on the buying side, too risky.
 
bgc said:
You gotta hand it to the people who market cattle that way. They can make huge amounts of money that way and still own the majority share of the bull. If I was in a position to sell cattle that way I would be all over it. I dont think I would want to be in on the buying side, too risky.
Click to expand...

I don't know that it would be too risky. If you buy the 3% for $7,500 I am sure you get a certain amount of semen for in herd use which would be similar to buying 100% in a bull for $7,500 other than not being able to use him for natural service. To make your investment back they would have to sell $250,000 worth of semen not including marketing, collection costs and any other miscellaneous costs you would have to share.

To me it is a lot less risk than buying 50% for $150,000 or something crazy like that.
 
The unofficial word I'm getting from the web is at the SAV sale yesterday bulls averaged $12,400 and the heifers averaged $11,300.

One cow sold for $350,000... :shock: :shock:

And we keep being told the economy is bad :???: Must still be a lot of moldy money lying around... :wink:
 
Yes old timer thats what I am hearing right now but top seller was a bull and thats unoffical also.

Sorry I guess I am not up with the times of the subject title should of changed to $300,000 bull..

7.4 millon gross.
I acutaly have 2 3/4 ET brothers to lots 117 to 122 at SAV sale for sale here.
grand dam is the same but first calf heifer was sired by SAV Net Worth
but they have not had the feed those up there have had.
 
If you sold 100,000 units of this bull which is not out of the question, with your 3% you would get the profit off of 3000 units. Lets say the units are $25/unit minus the cost of freezing etc. you stil get $10/unit so thats $30,000 gross profit... not bad! The bull studs that do this are able to buy good bulls for a cheaper price and still make money!
 
khol said:
If you sold 100,000 units of this bull which is not out of the question, with your 3% you would get the profit off of 3000 units. Lets say the units are $25/unit minus the cost of freezing etc. you stil get $10/unit so thats $30,000 gross profit... not bad! The bull studs that do this are able to buy good bulls for a cheaper price and still make money!
Click to expand...

SAV Final Answer is the only bull I know that has sold over 100,000 plus units per year of recient memory.I am sure there are a few others. As a very short timer is semen sales. Final Answer semen was selling for much less if one knew the right person..When he was at $20.00 my comission was 6 dollars per unit. The manager above me got $2.00 for what I sold on top of that. With $12.00 back to the company. I assume the semen company had to make something. Wonder how much per unit the owners of the bull got. I understand the semen companies will not purchace a bull unless they can project 25,000 units in sales. Now for certificates that could be split between the bull owner or the company depending where they were ordered from minus the $10.00 association fees.
I really did not think there were that many bulls selling for over $150,000
I guess I am living in the dark ages..
Qolt of the hot bulls are only hot for year or possible two unless they are really proven . At the same time some of these hot bulls can be great if the semen jocks give them a chance. Semen production is a controlling factor.
 

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