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bazach

May Sale - as a vendor is it worth it?

23 posts in this topic

Dam Myers is a very astute person and a dedicated horseman, so it's good to see him supporting the sale with all his weanlings being sold. He is also one of the few bigger breeders with no stallion, and his broodmare band is of reasonably good quality, so I thought it would be interesting to make up a table of his sales and compare just the service fees of the applicable stallions in 2016:

Lot number

Sale price

                    Sire

Service fee 2016 (app)

79

14,000

Por Moi

17,500

89

85,000

Press Statement

16,500

110

2,000

Power

8,000

145

14,000

Sweynesse

6,000

155

3,000

Power

8,000

190

170,000

Written Tycoon

49,500

196

7,000

Reliable Man

17,500

204

1,000

Sacred Falls

30,000

210

2,000

Jimmy Choux

5,000

225

1,000

Dalghar

8,000

230

22,000

Ocean Park

30,000

231

5,000

Showcasing

15,000

239

2,000

Proisir

7,000

279

45,000

Mongolian Khan

10,000

281

10,000

Sacred Falls

30,000

296

8,000

Iffraaj

17,500

304

54,000

So You Think

49,500

316

1,500

Contributer

12,500

332

14,000

Zacinto

10,000

19 lots sold 

Total=

$460,500

 

Total =

$347,500

 The question I'm asking is, is the amount of the 113k 'surplus' enough to cover all other expenses and make him want to continue down the line of selling all his stock as weanlings? He did very well with lot 190, ie made more than the 113k on this one lot, - and also with lot 89, but in total thirteen of the lots sold for LESS than their service fee, and only six sold for more than their service fee.  

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Certainly no expert but imo i would think that some of those stallion fees are well above what they should be.

It seems to me that if a stallion stands at a prominent stud then the fee soars.They do this because the have a captured market.

The days of the guy standing 1 stallion and surviving are well and truly over.

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That's "Dan", not Dam - God damn it!

 

Dam Myers is a very astute person and a dedicated horseman, so it's good to see him supporting the sale with all his weanlings being sold. He is also one of the few bigger breeders with no stallion, and his broodmare band is of reasonably good quality, so I thought it would be interesting to make up a table of his sales and compare just the service fees of the applicable stallions in 2016:

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It was grim to be there for sure - especially if you are a small breeder.  It was obvious that mares light in the pedigree or not a winner or mares who have had several foals with no winners were not in favour.  Some people will come on here and make rude comments about small breeders but at the end of the day a good horse can come from anywhere but if your mare falls into the above you are better to breed to race until a mare can prove herself.....IMHO

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I presume that he has negotiated much better services fees that what is listed, say 20% discount for instance would give approx $70k more in return, so how does that look for covering expenses and net profit ?

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Just now, skoozi said:

I presume that he has negotiated much better services fees that what is listed, say 20% discount for instance would give approx $70k more in return, so how does that look for covering expenses and net profit ?

No doubt he also does deals with NZB as I suspect other larger players do. 

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I know the sale wasn't particularly brilliant for vendors , but I've been going to this sale for a number of years and it appears to be thinning out in stock numbers and possibly has better quality than in previous years.

On the upside if you wanted to get a horse there was good opportunity to do so and let's face it a sale like this offers a lot of horses the opportunity to become racehorses rather than sit in a paddock or the alternative for the rest of their lives, and probably provides a lot of the bottom of the market an opportunity to restock.

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11 hours ago, fitzy said:

Has no one worked out that this is largely a cull sale and Dan is minimising his losses???????

No fitzy, you have it wrong with regard Dan Myers. He has said publicly that he made a conscious decision a few years ago to sell all his young stock as weanlings after several years of not doing so well selling yearlings. It would appear this year has not been so good for him ( but not a lose) but he has done really well with that decision in the last couple of years.

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49 minutes ago, Breeder said:

 

No fitzy, you have it wrong with regard Dan Myers. He has said publicly that he made a conscious decision a few years ago to sell all his young stock as weanlings after several years of not doing so well selling yearlings. It would appear this year has not been so good for him ( but not a lose) but he has done really well with that decision in the last couple of years.

You are correct breeder. I understand this is his total breeding crop, so no way is it a "cull" sale. I would think that apart from the two lots which sold well above the service fee, he will however, be considering his options for next year!

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Exactly Ethereal, he is a very good judge of horse flesh, and great opportunities if you are buying because, as you say, his broodmare band is pretty good. From a selling point of view, with Dan's lifetime dealing with horses and his knowledge of horse flesh, if he can't even get the service fee back from thirteen of his nineteen lots, what chance is there for any breeders other than those owning group winning mares, or the studs with the stallion?

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Judging by the table presented after all the expenses Mr Myers most likely still lost money, but that is not the point.Never mind the pedigree, if you go and look at all his animals, and the same for Waikato Stud, you will notice that they all have a reason for being there. These are mostly horses that will not make it into the K1 or K2 sale. So they quit them and put time and effort into the good ones. That is not to say that one can not pick up a bargain. I think the best buy of the entire sale was Sir P buying back his own broodmare for $150K. Will end up being a bargain.

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1 hour ago, psyc said:

Judging by the table presented after all the expenses Mr Myers most likely still lost money, but that is not the point.Never mind the pedigree, if you go and look at all his animals, and the same for Waikato Stud, you will notice that they all have a reason for being there. These are mostly horses that will not make it into the K1 or K2 sale. So they quit them and put time and effort into the good ones. That is not to say that one can not pick up a bargain. I think the best buy of the entire sale was Sir P buying back his own broodmare for $150K. Will end up being a bargain.

Sorry you are wrong re Mr Myers, it is a known fact that he sells all his weanlings (good or bad) at this sale and does not take anything through to the yearling sales. There was a good article written about this a couple of years back. Yes some of the other vendors/breeders who do not want to take yearlings to Book 3 put their lower quality weanlings through this sale, and I agree with you that this does not mean there is not something worth a taking a chance on. Sally McKay picked up a gem a couple of years ago!

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Interesting to see from my original post detailing the likely cost/benefit ratio for Dan Myers horses at the May weanling sale, that this weeks Gavelhouse on-line auction features a number of Dan's mares for sale, and advises that this will be a complete dispersal of his mares. If a knowledgeable person like Dan can't justify continuing breeding, then what hope is there for the industry?

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This month's Gavelhouse auction is for mares not in foal,  but the notes made against the mares indicate they will be selling all - maybe not all through Gavelhouse, ie "This is the 1st of 6 broodmares not in foal that we offer as part of our complete dispersal sale". This notation looks like it means all are being sold. Will be interesting to see. In any event, it is sad to see this happening to our industry.

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