So many awesome posts!
I've read a lot here about what a lot of customers "just don't understand" about the business but what I would like to add is what a lot of sellers, of all sorts of products, don't seem to understand, that is: customers don't have to understand.
The customer doesn't care anymore about the expenses you incur producing the animal than you do about the cost of farm machinery when you buy bread.
It's kind of a bogus topic in a sense because in reality if you were able to somehow produce your animals for half the price of that other breeders are paying (say you learned to shoplift feeders or steal electricity, whatever) you would have no reason to drop the price.
Think about it, when General Motors closes a car factory in Michigan that was paying each employee $25/hr and moves it to Mexico where they pay $25 per day do they suddenly cut their prices proportionately? Of course not.
Demand sets the price, competion suppresses it and that's all there is to it. Products are not sold for the lowest price a seller can "afford" but instead for as much as the customer will pay, no more, no less. If it costs one producer more to get his product to market than others he will simply make less money. Breeders in Toronto will always make more than those in Weyburn, Saskatchewan for this reason.
Whether or not you decide to itemize your sales receipts is up to you, add shipping, feeders, electricity, time and whatever you like but the customer will only be looking at ONE number: the final price.
__________________
I feel a little light headed... maybe you should drive...
|