Bud Williams Stockmanship and Livestock Marketing

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Bud Williams Stockmanship
Eunice Williams
883 E 505th Road
Aldrich, MO 65601

Cost of Gain . . . Cost to Keep

Question: . . . . after our visit to you. . .  we went home , and put your stockmanship to work for us, we are very happy for it. We did not talk alot about marketing, but I was wondering about using cost of keep, verses BPCOG in the winter months? Ann has a article on here Q&A section that says cost of keep is bad, if your creating positive cashflow is this not what you want?

Answer:     Ann doesn’t understand Cost to Keep therefore she thinks that it has to be bad. The example she used had nothing to do with marketing. The loss was because several died and there was only enough money left to buy what they bought. We had nothing to do with the trade, didn’t even know it was happening. There are lots of things that don’t fit with the sale barn ticket.

The BPCOG is just cost of gain with a profit. Cost to Keep is just what it cost plus a profit. They are exactly the same except the BPCOG is using per pound gain in weight or difference in weight and the Cost to Keep just uses the total cost whether there is a weight gain or not.

Use what works for you and makes a profit.