# Raising the Price - How’d That Go Over?



## VA Haymaker (Jul 1, 2014)

The thread on hay discounting got me thinking, what about the flip side - raising the price.

When have you raised the price of your hay, year over year (or for any other reason), why, how'd that go over with your repeat customers and sales potential with new customers?

Bill


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## broadriverhay (Jun 13, 2014)

I went from $5 to $6 and had no one complain. I did stay $5 for a few original customers just because they stayed with me when I was learning at first. Don’t hesitate to go up if you have too. Keep the quality high and you should have no problems. I have picked up several new customers this year by having some available this late. The ones you pick up now will either cherish you or just use you because they procrastinate about buying their hay every year.


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## IHCman (Aug 27, 2011)

Seems every year fuel, fertilizer, and all other inputs go up so the price of hay has to go up as well to cover costs.


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## somedevildawg (Jun 20, 2011)

Mine fluctuates....mostly the market that's dictates it, but I have to make numbers work out so I'm free to manipulate them the way I see fit. However, the market always ultimately dictates the price....


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## somedevildawg (Jun 20, 2011)

I will also say, there have been times where I could have taken advantage of the market but I didn't.....I regret that decision now


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## BWfarms (Aug 3, 2015)

IHCman said:


> Seems every year fuel, fertilizer, and all other inputs go up so the price of hay has to go up as well to cover costs.


Unless you're using Pappy's old Sperry New Hollands and free no input fields. I've made a mental note of who not to buy emergency hay from.... maybe I should write it down. There are a lot of fields in full broomstraw from last fall that will get cut as 'first' cutting.

This year I might buy a few hundred squares to put in a gambrel barn. I ended up with only eight 4x5 bales leftover. May just have to go to Hayden if this local crap keeps up.


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## MrLuggs (Dec 14, 2015)

Pretty much all of mine are fine with it, I'm just very clear as to the reasoning for it with them. If I tell them that fertilizer prices went up and we can't make bales for the old price, they're pretty understanding. As much as people want cheap hay, no one can reasonably expect you to take a loss in making it.

Mind you, maybe that's just my customers, who are all pretty regular. I'm sure they love knowing that I have hay kept aside for them at a fixed rate when the price spikes to $11/bale like it did here this winter.


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## endrow (Dec 15, 2011)

I would not want to hate customers to know a a lot about fertilizer prices and demand that directly affects the price of hay . Not all that many years ago nitrogen was close to $800 a ton and P&K we're close to $900 a ton. Today's prices are just a little bit less than that


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## Hayman1 (Jul 6, 2013)

I set my price on what it takes to cover my costs and make it worth my while. That is a big variable with different folks. In my area, the qualification for land use taxation is a huge incentive since i have no plans to give up my farm and there are no real candidates in the neighborhood that I would want running my place to qualify for LUT. My customers are mostly repeat long term customers who respect the level of effort I put into making hay and are willing to pay for that quality of input. They have all weathered the effects of buying cheap hay in the past and while they don't fully understand the differences in what the inputs are, they can see that my hay is essentially weed free high quality orchard grass that was not cut on July 15 when many of the folks start making their round bale roughage here. Cut, leave unattended on the ground for 4-5 days, rake with a big v wheel rake right before the baler, roll it and leave in the field for 2 or more weeks to let any wet stuff sweat out. Not exactly what horse competition folks in this area are looking for. Most of them know that a 3.50 square bale is not horse hay in this area.

That said, I did finally move my price when diesel hit 5$ several years ago, I had been holding off. I have been at 6$/bale at the barn for at least 3 years now and my customers are relieved or surprised each spring when the price has not gone up. Endrow-check some of your maintenance or other tickets that involve trucks, most folks still have a fuel surcharge. just sayin..

Also, if you have had a mechanic come help you do anything lately, have you noticed that their rates are the same as last year or less? Just wondering, I have not experienced that so my input costs are still going up. Fertilizer is a nice surprise, my fertilizer costs have stabilized as all my fields are at top fertility and it is much cheaper to keep it that way vs bringing an old haggard field into production.


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## Vol (Jul 5, 2009)

I was told yesterday that gasoline was going to sky rocket this summer....so you know diesel will not lag too far behind. I hope this does not come to fruition.

Regards, Mike


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## VA Haymaker (Jul 1, 2014)

Vol said:


> I was told yesterday that gasoline was going to sky rocket this summer....so you know diesel will not lag too far behind. I hope this does not come to fruition.
> 
> Regards, Mike


Fertilizer, I believe, follows petroleum prices too; if so - another increased cost.

An interesting wrinkle, at least for my area, is I feel there was a shortage of quality hay. I sold out quickly and could have moved another 1,000 bales easily. I've read that previous year carry-over has been liquidated with many hay growers, so not so much carry over from past years into 2018. Couple that with our ultra late spring (spitting snow just a few days ago) and what will be a later cutting for us (and I'm sure for others), I'd expect even more widespread hay shortages come this winter as potential for 2nd and 3rd cuttings are compromised by a later than normal first cutting.

Get ready - 2018 might be an expensive ride...


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## Teslan (Aug 20, 2011)

leeave96 said:


> The thread on hay discounting got me thinking, what about the flip side - raising the price.
> 
> When have you raised the price of your hay, year over year (or for any other reason), why, how'd that go over with your repeat customers and sales potential with new customers?
> 
> Bill


I'll let you know how it goes in a bit over a month. Last year first cutting $75 a bale. This year possibly $100. Year before last $65. I'm talking 3x3 bales of grass hay. I was already called names by one guy when I told him there will be a price increase.


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## endrow (Dec 15, 2011)

Hayman1 said:


> I set my price on what it takes to cover my costs and make it worth my while. That is a big variable with different folks. In my area, the qualification for land use taxation is a huge incentive since i have no plans to give up my farm and there are no real candidates in the neighborhood that I would want running my place to qualify for LUT. My customers are mostly repeat long term customers who respect the level of effort I put into making hay and are willing to pay for that quality of input. They have all weathered the effects of buying cheap hay in the past and while they don't fully understand the differences in what the inputs are, they can see that my hay is essentially weed free high quality orchard grass that was not cut on July 15 when many of the folks start making their round bale roughage here. Cut, leave unattended on the ground for 4-5 days, rake with a big v wheel rake right before the baler, roll it and leave in the field for 2 or more weeks to let any wet stuff sweat out. Not exactly what horse competition folks in this area are looking for. Most of them know that a 3.50 square bale is not horse hay in this area.
> 
> That said, I did finally move my price when diesel hit 5$ several years ago, I had been holding off. I have been at 6$/bale at the barn for at least 3 years now and my customers are relieved or surprised each spring when the price has not gone up. Endrow-check some of your maintenance or other tickets that involve trucks, most folks still have a fuel surcharge. just sayin..
> 
> Also, if you have had a mechanic come help you do anything lately, have you noticed that their rates are the same as last year or less? Just wondering, I have not experienced that so my input costs are still going up. Fertilizer is a nice surprise, my fertilizer costs have stabilized as all my fields are at top fertility and it is much cheaper to keep it that way vs bringing an old haggard field into production.


I do understand fuel surcharge , we pay the bill to have our milk hauled and the hauler has a fuel surcharge in the contract and we have paid in the past .


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## MrLuggs (Dec 14, 2015)

endrow said:


> I would not want to hate customers to know a a lot about fertilizer prices and demand that directly affects the price of hay . Not all that many years ago nitrogen was close to $800 a ton and P&K we're close to $900 a ton. Today's prices are just a little bit less than that


Right, doesn't necessarily need to be fertilizer, insert any variable cost item, or combination of them


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