Category: Marketing

COMPETITIVE ADVANTAGE

Holding on to Your Advantage –

By Kit Pharo

In last week’s PCC Update, we discussed the need to have a competitive advantage – and how to obtain one.   This article was written for the benefit of the many PCC subscribers who already have a competitive advantage.

NOTE: If you don’t have a competitive advantage, I suggest you re-read last week’s PCC Update.   We believe having a competitive advantage will be the difference between mere survival and true success in the future of the cow-calf business.

You have a competitive advantage because you were willing to step out of the status quo herd and do a better job of running your business.   However, you will only have a competitive advantage until the majority discover they can do what you are doing.   Rest assured, this will take much longer than it should.

Eventually, though, yesterday’s Herd Quitters will become the new status quo.   If you want to maintain your competitive edge, you must continue to change with the times.   You must recognize when you are in danger of becoming the new status quo, and start looking for new advantages.   This is a never-ending challenge that I love.

Henry Ford is an excellent example of a leader who fell behind.   It has been said that Henry Ford was 20 years ahead of his competition for the first 20 years of his business – and 20 years behind the next 20 years.   During the boom years of the Model T, over two-thirds of the cars in the U.S. were Fords.

Henry did what he had to do to become the leader in the early car business – but he failed to adapt and change with the times.   For example, he thought every car should be black.   He allowed his business to stagnate under its previous success.   The same thing can happen to us if we’re not careful.    Nothing stays the same!   The key to staying ahead is to adapt to change as it is taking place.

Quote Worth Re-Quoting –

“It is not the strongest of the species that survives, nor the most intelligent that survives.   It is the one that is most adaptable to change.”   ~ Charles Darwin

“It is not necessary to change.   Survival is not mandatory.”   W. Edwards Deming

Production Per Acre –

By Tim Goodnight

Shifting the focus from production per cow to production per acre has been shown to increase profitability.  It’s no secret that smaller framed cows will produce more calves and more total pounds per acre.  In addition, these lighter calves are worth more per pound.

More pounds that are worth more per pound is a win-win, right?

As simple as this concept is… status quo producers can’t seem to understand that by focusing on individual growth and weaning weights, they are limiting their profitability.  Despite the emphasis placed on growth, the status quobeef industry has not been able to increase average weaning weights over the past 15 years.   The only thing that has increased in the last 15 years is cow size.  This has led to the increased use of expensive inputs, which has had a negative impact on profitability.

So how can producers increase production per acre?  It begins with a paradigm shift.  Shifting the focus to the production and performance of the entire operation instead of the individual animal is the most important first step.  Next,you should align your operation with a program that has shown the ability to increase total production without expensive inputs.  Pharo Cattle Company has been that program for 30 years.  If you’re ready to increase your ranch’s total production and profitability, we can help.

Quote Worth Re-Quoting –

“In times of change, learners will inherit the earth – while the learned find themselves beautifully equipped to deal with a world that no longer exists.”   ~ Eric Hoffer

“Those who cannot change their minds cannot change anything.”   ~ George Bernard Shaw

Marketing the Ranch

Marketing – The process of creating excitement about your product/service.
Sales – The process of actually selling your product/service.

Sales of the product on the Ranch – You have that figured out. Sales barns, video, and internet, they all get the job done very well with the largest number of potential buyers.

But – Marketing, that has been left up to the barns/video/internet sales facilitators. And how do they go about doing that. – The Sale Bill. The consignment list they post in publications and websites.

That’s IT!!!!!!

Why should you take an interest in “Marketing your Livestock”
Picture this – If there are 2 more bidders at the sale to BID on your livestock. 50,000 lbs at $1.10 = $55,000.
With 2 more bidders you could get say .05 +/- cents more?
50,000 lbs at $1.15 = $57,500.
$2500 More….

What can you do to “Market your Livestock”?
Website – $500 a year.
Print Media – $500 a year.
Social Media – $100 a year.

  • Take lots of pictures
  • Write down what you do.
  • Write down your genetics
  • Ad pictures to everything.

The more visual you are the more your pictures will sell your Calves.

Build upon the reputation that you already have.
By Investing $1.00 in your Marketing – You can get $2.00 back.

I can HELP – call 307.331.0357

Rules of Thumb for Ranching

Rules of Thumb for Ranching
Compiled by Steve Moreland, March 23, 2017

This subject has come up on Ranch Talk on the Ranchers.net Bull Session. Here are a few axioms that have been passed on through the years. Others might find them to be of interest.

A theory I heard just lately is that the cost of five months of rented summer pasture should be equal to a third of what a steer calf is worth at weaning time. If the calf is worth $900, a third of that would be $300. $300 divided by five months would be $60 per month.

Always keep your best heifer calves.

Don’t keep kicking a dead horse. If something isn’t working, kick the habit.

Have a rigid culling program on cows in the herd. If you have to give them extra attention to get a calf sucking, graft the calf onto a better young cow and say adios’ to the problem cow.

Good nutrition trumps high-falutin’ genetics.

Never sell hay, especially if there is any chance you might come up short for your own cattle before green grass.

Uniformity helps to achieve premium prices.

If you are sitting in a pickup waiting for a cow to have her calf, park sideways to the cow and try to act nonchalantly disinterested. If the pickup is facing the distraught cow, she regards the headlights as “eyes” staring at her.

My dad and other neighbors always used to say that you should half your hay left by the first of March. Of course in those days it was a lot harder to haul in stacked hay if you ran short.

An hour in the morning is worth two in the afternoon.

Glamour tends to dissolve in sweat.

One old neighbor that my dad worked for as a young man would say each evening before supper, “Well, we didn’t get much done today but we’ll give ‘er hell tomorrow.”

It’s easy to cut a big strap if you’re using someone else’s leather.

If the sun is shining, take along a coat. If it’s cloudy do what you want.

The only way to move cattle fast is to move them slow.

It’s amazing how dumb a cow can be. What’s more amazing is how many cowboys can’t outsmart a dumb old cow.

A good cowboy on a poor horse can get a lot more done that can a poor cowboy on a real good horse.

A boy is all boy; two boys are half a boy; three boys are no boys at all.

The two most critical weeks of each year for grass and hay production are the two middle weeks of May. If you can get some rain and sunshine and no late freezes during that time period, the rest of the summer usually goes quite well.

An extra inch of rain takes the place of a lot of management.

Substance over style.

Don’t judge a book by its cover.

Always keep your cattle saleable. If cattle in good condition are worth a premium if they are offered for sale, they are worth that same premium if you own them. If you have to sell them for some reason, they will command a good price.

Extra feed on hand, whether it be left-over grass in a pasture or year-old hay, is always an asset and not a liability. It is just as good as money in the bank, and you don’t have to pay income tax on it.

You can’t starve a profit out of a cow.

The best insurance is a fat cow going into the winter.

Fat is a pretty color.

A good horse is never a bad color.

It is easier to pull a chain than to push one. Often times the same principle applies in moving cattle. A feed pickup in the lead can save a lot of whooping and hollering and exasperation at the rear of the herd. If a bunch of cattle won’t cross a bridge, try stringing out a little cake in front of the ones in the lead.

If a bunch of cow/calf pairs won’t cross a barrier such as a bridge or slippery ice, rope a calf around its neck. When it bellers, its mother will come and bring many of her bovine buddies with her. Pull the calf across the barrier, and the rest will follow.

Portable corral panels are very handy. Often times a panel or two in a strategic place can make cattle sorting a whole lot easier.

An ounce of rain is worth much more than a pound of hail.

A job well done is a self-portrait of the one who did it.

A sign in an implement dealer’s store that holds merit: “Poor planning on your part does not constitute an emergency on our part.”
The best cow dog in Cherry County resides on our ranch. He stays in the house yard digging up petunias while we work cattle.

Very often a dog that shows up at a cattle working screws things up as much as if three hard-working cow hands had not come at all.

Chinks look cool, but if the wrestler on a calf’s head is wearing them, the fringe tends to be very much in the way of the workers who are vaccinating, installing ear tags, ear marking, implanting or dehorning.

If you think a horse might buck and give trouble, try leaving the spurs off of your boots. Often times, the extra inadvertent poking that a horse gets from a rider trying to stay on, only further antagonizes the horse and makes them buck harder.

A brand put on properly gives extra insurance that it will be easily seen for the rest of the bovine’s time on your ranch. This is your stamp of ownership, so apply it the best you can—not too deep but not too lightly. A brand that does not blotch is an extra bonus.

DISCLAIMER: All of these rules of thumb have served well through the years except for 2016. It seems like last year none of these rules worked. But this has always been a “next year country,” and I have high hopes for 2017 and beyond.

Feel free to add to the list, or to debunk some of my theories.
Some of these ideas vary greatly from those of others. I am not trying to offend anyone, but only offering food for thought.

Is Average Good Enough for You?

Kit Pharo – Pharo Cattle Company

As silly as it sounds, average is good enough for most cow-calf producers.   In agriculture, average is breakeven.   Below average producers are losing money.   The only way they can stay in business is to subsidize the farm or ranch with outside income.   Above average producers are profitable.   A few are extremely profitable.   They are profitable because they do things differently from status quo (average) producers.   They have a distinct competitive advantage.

Most PCC Customers are well above average.   Many have doubled or tripled their profits.   They are focused on production per acre – instead of production per cow (bragging rights).   They are using ultra-low-maintenance bulls – instead of the status quo, high-maintenance bulls everyone else is using.   They know stocking rate affects profitability, or lack thereof, more than anything else.

Ag economist Danny Klinefelter explains how you can get a competitive edge simply by rejecting the status quo.   That’s right… by rejecting the status quo!   Klinefelter says, “The only truly sustainable competitive advantage today is the ability to learn and adapt faster than your competition.”   Click on the link below to listen to what he has to say.

Reject the Status Quo

Following the crowd and doing what everyone else is doing is never the best way to manage a business.   In most cases, it is the absolute worst way to manage a business.   If you are part of the status quo herd, you will never be above average – and you will never have a competitive advantage.   Dare to be different.   Dare to be a Herd Quitter.

Quote Worth Re-Quoting –

“If you don’t have a competitive advantage, don’t try to compete.”   ~ Jack Welch