Set your price and stick to it!

I am too nice. I have given out too many deals and lost money on  many sales. When I first started with selling livestock I was lacking confidence in the process.  I didn’t set my price and stick with it, I let customers talk me down on price almost every time. Because of it, I sold a lot of pigs one summer but my profits did not reflecting the volume sold.

I have learned the hard way to set my price and stick to it.  Our customers have to realize that it costs money to get the animals to the point of sale. The sale of offspring has to cover the cost of the breeding stock, plus any cost incurred after weaning. The money and time spent up to the sale is your break even point, your rock bottom price should always be above that point. If you sell your animals at or below your break even point, you are actually paying your customer to take your animals from you.

I have always been customer focused in every job that I have had. Which is great when attracting the sale, and getting the commitment of the sale, but not great when negotiating price. My trick to avoid selling too low is to have everything laid out in advance.  I set my price and also  set my rock bottom price. I set how much I will come down at a time, and know what my answers will be. Example: My price= $100, Rock Bottom= $85, Reduced by $5 increments at a time. If you do not set these in advance, your customer will have the advantage in the negotiation. your customer wants to get the lowest price, and you need to get the highest price.

Good Luck!!

 

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