How much should a buyer make?

[blackhammer]

Let's say on a 22 dollar coon.I realize they are taking a risk and have high overhead.Is four,four and half dollars too much?I have no idea what they expect to make and have heard various amounts.Four seems a bit high but like I said I have no idea,

[claytoncarr]

100% OR MORE.

[blackhammer]

I'm talking what he makes after his expenses.Put up,labor,buildings vehicles all his overhead.How much is left for him to put in his pocket?If your saying that a 22 dollar coon is worth 11 sold in the carcass I wouldn't doubt that is a possibility.But a 100%,so on a 100 22 dollar coon he makes 2200 dollars?

[Stef]

Ask Santa clause (Gary)

[bblwi]

I don't think it my business to tell a buyer what his margins should be when I am working hard to increase my margins by using all the tools I can.
If I can catch coons and put them up for say $7 each and my competitor has a cost of $4 should he sell his for less so that we make the same?

Bryce

[trappnman]

$4 gain on a $22 coon, is only 20%, and not even that. I would have to think, that at least a 25% gain overall would be the minimum needed to remain in business year after year.

Heres my personal belief, from what I've gathered over the years, and that is that local buyers don't make a high % on top goods, but rather on the more volume heavy mid range to bottom goods, and certainly on processing fur.

For example, my buyer told me today, that he sold my coyotes and garmens, and for all practical purposes broke even on them, selling them private treaty. I saw the invoice, and what he said was true. But continuing this example, he did very well buying carcass and green coyotes- at low prices of $6 carcass, not sure on green- but saying in those types of buys, the potential for better profit was to be seen.

back to coon, lets say coon goes for $22 average for trapline run at final sale.

that dealer might offer put up fur $18 dollar average-

green fur $16 average

carcasses fur $10- 12 average

so if you say $2 skin, $2 put up- then the green coon and putup coon, are costing him $18, the carcass coon $14-16-

more of a gamble on top end because the margins are less.

[TurTLe]

I'd agree that they need to at least run at 25%. This isn't wholesale to resale, so I don't buy the whole 100% mark up deal. Buyers make their money in volume on the mid-grade fur. At least that is how the buyer I used to skin for did it.

I'd say most buyers are good guys paying the best they can, but there are some that will try and screw you over every which way but loose.

[ack]

a couple years back i fleshed a bunch of coon for a local buyer who got way behind on the put-up. he told me not to worry if i trashed a few as he only had 5$ max in them. i averaged 27$ on "my" coon at the same auction he sent his to. that is the main reason i no longer sell locally.

[CoonDuke]

One thing that seems to be the case is the fur buyer can make similar profits whether the market is good or bad.

Say a buyer wants to make a 20% profit.

On a good year, he buys coon for $20 average and sells for $24.

On a bad year, he buys coon for $5 average and sells for $6.

For "X" amount of money invested he can still make the same profit IF he buys 4 times the number of coon on a bad year.

Buyers are greatly affected when there are sudden downturns in the market...I understand the risk. But, sometimes I feel some buyers do not realize the amount of investment and cost it takes to harvest furs. Poor markets really suck for the trapper.

[CoonDuke]

Also, I would bet that throughout the years there were thousands and thousands of muskrats bought at PA fur auctions that were sold for a nickel or dime profit per skin.

[mattduncan]

he should make as much as he can , just like the trapper can make as much as he can , all choices on both parts

[blackhammer]

Feb 24, 2011 2:44:12 GMT -6 mattduncan said:

he should make as much as he can , just like the trapper can make as much as he can , all choices on both parts

There is only so much to go around.I consider my overhead just as important as the buyers.We all should get a fair piece of the pie.As much as they can isn't always the smartest way to do business.There is a buyer,seller relationship and a win/win scenario for both hopefully is possible.

[RonMarsh]

If you do not like the price you are getting locally ship it and see how you do.

Otherwise buy you fur buyers permit, buy fur, put it up, and take a chance on the market. The fur buyers that I know are buying for a clearing house and make very little for each pelt. Some travel long distances and some times do not buy anything because the margin is not there.

[gcs]

I've found over the ages that a buyer is a buyer, doesn't matter if it's fur, clams, fish, wood..... there is no set profit margin, it goes up and sometimes down depending on availability, markets, economy, the person selling,and sometimes "greed" Which we all have to some degree.

If your market choices are few, especially on a perishable product, your basically taking what is offered. So now it depends on your relationship with the buyer, the quality of your product and the ability of the buyer to move that product. I guarantee that different people get different treatment, and prices.

It all works as long as both buyer and seller are making money, and they're both complaining of being "taken"

[blackhammer]

Feb 24, 2011 7:52:34 GMT -6 RonMarsh said:

If you do not like the price you are getting locally ship it and see how you do.

Otherwise buy you fur buyers permit, buy fur, put it up, and take a chance on the market. The fur buyers that I know are buying for a clearing house and make very little for each pelt. Some travel long distances and some times do not buy anything because the margin is not there.

You mean if you don't like the price your getting you can sell somewhere else?

Good post gcs.

[garman]

Here is the way I see it, don't like prices locally... sell up north, if you do not like that either, have them tanned and sell to tourist, or sell to taxidermist trade, or take the time, money etc to make contacts and sell overseas yourself, if you think you get enough fur you can. People grouch about Groeney, hey he fills a niche and you do not have to sell to him. People grouch about the local buyer- hey buy fur yourself once. and even if you are lucky to make a profit try to find someone to work for you that shows up when they are supposed to, because you will need workers (unless you are superman and have no life), and can actually skin and flesh, find someone that does not leave you out in the cold when you have several 100 or 1000 coon needing skinned yesterday because bellys are green from the sellers keeping them in the 50 deg. barn for 2 weeks. The only fur I think I would buy would be skunks, I can buy them very cheap, sell essence, sell some to taxidermy and contract sell the rest.

[garman]

PS and if my neighbors in town were not such complainers I would buy skunks and put them up! LOL

[Woodswalker]

If a buyer gets 20,000 coon and makes 2 dollars a coon that's 40 grand - not bad money considering the season is really only a couple months long.

[musher]

Feb 24, 2011 13:36:56 GMT -6 Woodswalker said:

If a buyer gets 20,000 coon and makes 2 dollars a coon that's 40 grand - not bad money considering the season is really only a couple months long.

And if he loses 2 bucks a coon he loses 40 grand. That hurts even more when you consider that he worked for a loss.

[Woodswalker]

And if he loses 4 bucks a coon he loses 80 grand. That hurts even more when you consider that he worked for a loss.