Marketing Your Cattle in a Live Auction

by Mark Cowan, American Marketing Services

What does it take to market cattle in an auction? Good cattle are a given. However, to be consistently successful, you need more than just good cattle – you need a plan.

Plan to market your cattle well in advance of the event. That planning and goal-setting should occur 30 to 36 months ahead of your event participation. Plan to maximize your return for participating and your return on your investment. Cattle you mate today will not reach yearling for two more years. You cannot sell them as bred heifers or coming two-year-old bulls for another 30 months. What are the highest-performing, most in-demand genetics you can identify? How do those genetics work and how will they match your cow herd? The best way to answer those questions is to target specific bulls and go look yourself. The second best way is to discuss those animals with people who see a lot of calves by the targeted bulls, including the owners. It is in their best interest that their customers understand clearly how the sires work and what kind of cattle are phenotypically complimentary to the herd sires you want to use. Buy semen on those bulls and artificially inseminate (AI) your cows if you want to participate in an auction. The contrast between natural-service-sired animals (NS) and AI-sired animals in terms of price is startling, and it makes no difference whether you are marketing females or range bulls. Your customers, in many cases, will know as much about the AI sires you choose as you do; it is important to gather as much information as you can and to choose wisely. The price differential between NS and AI cattle is as much as four to seven times the $50 cost to synchronize and AI your cow herd. Artificial insemination is an excellent tool to maximize your return on investment.

Differentiate and brand your product. Give your potential customers specific reasons to own your cattle. Only you, as an owner, can initially identify and determine the direction of the branding and differentiation process. That is a personal decision, but one that is necessary to be successful. Some examples of successful branding in the corporate world would be the Cadillac brand, the King Ranch brand, Mercedes, Crest toothpaste, Listerine mouthwash, and the biggest of them all is Coca Cola. Is a Cadillac Escalade worth $60,000 more that a Chevy Cruz? Both are made by GM, but the brand and the internet says it is worth more. Are Mercedes worth more than Cadillacs? The brand says they are. Is Coca Cola the Real Thing? The brand says it is. Now, follow a little further, how do we know about these value differences? Each of the corporate entities behind these brands hammers their message home – not one time and done – but over and over. At trade shows, car shows, on television, and on the internet. They advertise. They sponsor events. They promote their differences and the superiority of their product, and when everyone understands that, they promote it some more. The consumer market is ever-changing; new consumers are being added; others are aging and fading away. These companies know they must constantly expand their brand to hold their existing base and attract the next generation of consumers. This isn’t too different from the seedstock business, when you think about it.

Let’s try to use some of the everyday lessons we can learn from these and other branding professionals. How will you brand your product? Do you win all the major shows? Do you have high weaning weights and yearling weights? Do you have the biggest EPDs? Do you have the most balanced EPDs? Do you have the best carcass traits bred into your cattle? Do you have the most trouble-free cattle? Do you have the best udders in your cow herd? Can you supply the most seedstock at the most reasonable price? Do you have the most hybrid vigor expressed in your product? Believe it or not, there have been cattle operations that have differentiated their product in each of these mentioned ways. They have been among the most successful seedstock operations in the country. There are many ways to brand and differentiate your product, it is an individual choice, but brand you must.

Present your differentiated product in a way that maximizes its value at the sale location. Nutritious and wholesome feed is one the best investments ever. Have your sale offering above the average of the sale in terms of condition. If the body condition score (BCS) of the other cattle average 5.5, have yours with a BCS of 6.5. You will be paid for your feed times over. Your cattle should be clipped; if you do not own a pair of clippers, find someone who does. If your goal is to maximize value, your consignment must look the part from conditioning to presentation. Be available prior to and during the sale. Promote your brand and your product.

Communicate with your potential customers. Help them find reasons they should own one of your branded and differentiated products. Advertise, promote, and make phone calls. Never drop your cattle off at a sale location and expect others to do your promotion and selling for you. Successful marketing takes work and a team effort by all involved.

Plan, differentiate, brand, present and communicate. Simple to say, problematic to implement at times, but essential to success in the auction world.