Cut Costs, Break-Even, Is That Information Helpful?

Posted September 25th, 2009 — Filed in Bud's Musings

Almost everything that I read recently is about how difficult things are now and that we must cut costs. For the last fifty years they have been writing that ranching is difficult and we must cut costs. If people had been doing what they were told there should be no costs by now. After awhile it should be obvious that the advice they are giving is not that good or things would not always be so difficult. 

For all of these years they also talked about breakeven.  If our goal is to breakeven then any business will be difficult.  When will the livestock business realize that there must be a profit or it will always be difficult?

Looking at breakeven makes no sense anyway.  We don’t know for sure what our costs will be, even if we cut them, so that is just a guess. We have no idea what the market prices will be in the future so that would be another guess. How can the smart people think that their market plan, based on guesses, that end up with a breakeven will actually help someone be profitable?

The purpose of the Subscription section of our website is to try to help people to be profitable, even during “difficult times”. There are many ways to make a livestock business profitable and different people may need to use different ways. While we do not have all the answers we should be able to really help with stockmanship and marketing.

Ann Barnhardt puts on our marketing school and does an excellent job. If you are interested in marketing, go to her school.  Then, if there are questions, maybe the website will help.

If you have not been to a stockmanship school, Eunice sells a video that is pretty complete and then we will try to help with your questions on the website.

Bud