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Forage Facts March 2005
In This Issue . . .
Many hay growers simply sell hay. They are selling a commodity to low bidders rather than developing a market for a product. Bringing factors other than price into the market such as forage quality, consideration of customer needs, prompt delivery, steady supply, and appreciation of business can increase value and salability of product. If price is the only determining factor, someone is always waiting in the sidelines to undercut your price. Marketing rather than selling hay will greatly increase sales and price for a valued product with service. Tips
for Selling Hay: 1)
Determine Buyer's Real Interests What kind of hay does buyer want, what type of animal
is the individual feeding? Is
quality determined by forage analysis, leafiness or other?
Is presence of grass a desired or not?
Other traits important, e.g., lack of dust, color, small bales.
2)
Define Terms of Pricing What is the point of sale?
Is the price at your barn or stack, loaded on buyer’s truck,
delivered on your truck, or something else?
Will you accept a counter offer?
3)
Tonnage to be purchased What is the contracted amount?
Is all hay to be delivered at one time or over
some period of time?
4)
Effective Date of Price How long is the price good for? One month? One
week?
5)
Payment Terms What are the payment terms?
Payment on delivery, one month after delivery, something else?
What payment type do you want? Cash, cashier’s check, etc.
6)
Considerations if you are delivering What is access to site where hay will be stored, can
your truck get there? Are you
expected to unload and stack, other? How much help will buyer provide?
When will buyer be present (to help, or provide access, or to pay)?
7)
Follow up with your customers Call the buyer after delivery and ask how your product
is being accepted. Is there
any room for improvement?
This may be the difference
between a single sale and several years of business. If a customer
is satisfied and you have more hay to sell, ask if customer knows of other
potential buyers. by Dan Undersander, UW Extension Forage Agronomist, University of Wisconsin
Tips for Buying Hay 1. Determine
the type, quality, and quantity of hay you want. 2. Check
current prices to gain an understanding of the price range for they type
of hay you are looking for. Keep
in mind that prices listed may not include delivery charges. 3. Shop
around. There are numerous
places hay is available: newspaper
ads, local hay auctions, hay growers, and many Internet sites.
Here are a few common ones:
hayexchange.com,
haylist.umn.edu,
fsa.usda.gov/haynet 4. If
you have the opportunity, examine the hay before purchase to look for
signs of moldy or damaged hay. 5. Establish terms before you finalize the purchase: prices, delivery terms, who is responsible for hay that doesn’t meet your standards, etc. Whether buying or selling
hay, be aware of the method of pricing. It is customary in many areas to price hay by the bale.
There is a growing amount of concern among consumers who purchase hay
about the large variation in bale sizes or the weight per bale. It is the
responsibility of all buyers and sellers using this directory to ascertain
that the bale size or weight is acceptable in relation to the purchase
price. Purchasing and selling hay by the ton is rapidly becoming
a more equitable method of buying hay. Purchasing hay by the ton allows
the buyer to know precisely how much hay he is getting for his money,
provided the hay is cured properly and accurately weighed. The following
charts can be used as a guide to convert from bale prices to ton prices. Useful Conversion Formulas
To convert the price per ton
to price per bale: 1. Determine average weight of bales you are purchasing in
lbs. 2. Divide the price per ton by 2000 and multiply the results times the average weight of the bales to determine the price per bale
To convert price per bale to
price per ton: 1. Determine average weight per bale. 2. Divide 2000 by the average weight per bale to get the
number of bales per ton. 3. Multiply the number of bales per ton times the price per bale to get the price per ton.
Conversion Chart for Converting Hay Price Per Ton to Price
Per Bale
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