# Do Hay Discounts Help or Hurt



## ozarkian (Dec 11, 2010)

How many of you discount on a regular basis?

https://www.progressiveforage.com/forage-production/management/do-hay-discounts-hurt-or-benefit-growers

Stuart


----------



## swmnhay (Jun 13, 2008)

Nope but I charge extra for small amounts.Less then a load.

I think I'm priced pretty fair with the local market and a new guy that calls and tries to dicker on price is a turn off for me.

Most of my regular customers don't even ask the price just tell me to bring it.


----------



## broadriverhay (Jun 13, 2014)

Amen swmnhay. I hate someone to ask for a discount. I don't ask or get discounts on equipment , fuel fertilizer, parts, land taxes, or anything else.


----------



## BWfarms (Aug 3, 2015)

I'm willing to explain my production costs and why that is the price. The more understanding the customer has, the better the transaction. I do not leave out any details from the amendments, buildings, equipment, insurance, maintenance, taxes, my pay rate, etc. The 'profit' goes into operating funds such as repairs, not a new personal toy... even though a new piece of equipment is a toy 

Advice given to me by a shrewd businessman was to always price as high as the market will bear. When you start discounting yourself, the consumer will always expect a deal from you. Give them a product that reflects the value and they will return.


----------



## Taylor.Jackson (Sep 30, 2016)

Speaking from another industry discounts can train your customer to wait for a discount instead of buying at full price which they would have done before you started all this "discount" crap. Most of the time a discount means more work for less money. id rather work less make less Gross, but net more


----------



## swmnhay (Jun 13, 2008)

So what will happen when you give one guy a discount?He will go to the local coffee shop,elevator,bar etc and tell everyone he got a better deal.So then the guy that pd full price for his hay will be pissed and go someplace next yr.And the guy you gave the discount to will call everyone that sells hay to get the best deal again the next year and good chance he will buy elsewhere.


----------



## RockyHill (Apr 24, 2013)

We price our hay according to quality. Our best hay sells for $5 (45# bale out of barn) and we have a buyer that is good to work with who would pay $.50 more but we've been selling to him for a few years now and things work well. Possibly in 2019 will go to $5.50. For the odd quantities it is still $5/bale for one bale or 100. For buyers who want to know if they can get a discount if they take 20 bales (sometimes even fewer), they get a very polite "no, that is the price of that hay". Here, $5 hay doesn't sell to locals; $4 is fairly tough; and $3 (or they want it for less) they want what would be $8 hay quality.

This year we've had $5, $4, $3.50, and $3 hay. The $3 was from 2016 (the absolute worst year for good hay we've ever had) that was way over mature and it is all some people are able to find and were glad to get it. Some potential buyers thought we were trying to keep from selling it when we accurately described it. Nope, if you are surprised about the quality of our hay when you get here, we want it to be a positive surprise. The only reason we had to advertise hay this year was in 2016 we didn't have the quality hay our customers needed. Some customers went elsewhere with our blessings, we didn't have the hay they needed. That is just part of producing hay.

That's the long answer and probably TMI, but I think buyers needing a discount will always be price driven.

Shelia


----------



## Hayman1 (Jul 6, 2013)

Never discount the price. For my biggest customer, I haul wagons to them, they still unload. I am just too old to enjoy that much fun anymore especially after I worked in the hay field all day to get it made. I would love to see the expression on my fuel suppliers face if I asked him for a discount. It would not be pretty. For seed, fertilizer, and spraying, I get quotes, but there is no discount involved. Buying equipment isn't the same as it is not happening routinely. Same with buying/selling a horse since all my customers are horse folks. There it is a negotiation. There is no negotiation when I sell hay. 6$ at the barn. deadpan.


----------



## slowzuki (Mar 8, 2011)

Hay here is priced on quality and other things. Price goes up in this order - picked up in field, take loads delivered to you as its being baled (baskets get dumped 100 bales at a time), pickup from my barn, delivered from my barn, and lastly loaded in your barn by me.

The last one, put in your barn by me is being abused a bit, I need to up my price for that.


----------



## ozarkian (Dec 11, 2010)

I used to discount for quantity when I was building a customer base. Sadly, buyers expect a discount. I was apprehensive about saying no. As the years went on, I learned how to say no. I price my hay according to it's value, not what the guy down the road is selling his for.


----------



## broadriverhay (Jun 13, 2014)

I had a lady today text and said you are 30 minutes away. My reply was I have people drive 2 hours to buy my hay. She immediately called saying she didn’t mean anything by it. If you keep the quality high then you can demand a premium price with no discounts.


----------



## r82230 (Mar 1, 2016)

Easiest way to prevent discounts, put banker (wife) in charge of reducing prices, end of discussion. She knows, that any reduction in profits, reduces the grandkids/kids, Christmas/birthday presents. Or least in MY situation.  She will tell them, it all ready is heavily discounted, price increase coming soon, better pre-pay to get today's pricing, while supplies last (she wants to start shopping for presents).

Larry


----------



## SCtrailrider (May 1, 2016)

I agree with you broadriver, I sold about 20 rolls 2 years ago before I had my hay shed finished, I didn't want it to be rained on so I sold it.. The lady calls me 2-3 times a year at least now asking if I have any to sell, I haven't sold any since I sold to her, she always comments how heavy & green my rolls were and her animals loved it and gained weight to boot...

If you make quality hay don't cut yourself short, look out for yourself first...


----------



## Vol (Jul 5, 2009)

I saw this article posted in PFG a couple of weeks ago. It irked me so bad that I did not even want to open a discussion on it. If you have sold hay for more than a year or two, you know that offering a discount will do nothing more than open a can of crap that you will very soon learn to regret.

Regards, Mike


----------



## broadriverhay (Jun 13, 2014)

The lady that texted me earlier just called. She got some from another customer I had given her as a reference and said it was beautiful and she would be coming to see me soon. She said if her horse did not eat it that he had to have head problems. Maybe the 30 minute drive will be worth it after all to her.


----------



## swmnhay (Jun 13, 2008)

If anyone should get a discount its your repeat loyal customers.

But then again if you treat everyone the same and give same price neither can complain about the other.

One seed co I deal with just sent out a discount of 25% for sales this month.Holy crap,the best they do for early paid 6 months early is under 10%.They won't give the big discount on previous sales either.Going to be some pissed off people if they bought early!!!


----------



## IHCman (Aug 27, 2011)

The price is the price. Saying that I'd like to charge some people an extra 5 bucks a bale when they could've planned ahead and got hay when the weather is better instead of waiting till the snow is deep or the ground was froze but now isn't when they want hay. So I guess that'd be kind of a discount to charge them less if they'd come get it before they desperately need it.


----------



## FarmerCline (Oct 12, 2011)

I price my hay based on the quality but there is no negotiation on my price I set and it does not vary by the season......same price the day it is baled as it is in January. I find most customers appreciate you keeping a set price and not raising it during the winter months when hay supplies may get low. To me that is a better way to keep customers than giving discounts like the article said.

Now I do up charge for small amounts of hay......for the time and trouble of waiting around and starting up the forklift to just load a bundle or two it is worth a higher price. I call it my wholesale and retail price. Not really any difference than a feed store charging a premium price for handling small amounts of hay. Before pricing any hay to a new customer that calls I always ask what quantity they are looking for.

I will say I have a couple friends that I give a small discount to but that is a different situation and not standard business with the general public.

Hayden


----------



## RockmartGA (Jun 29, 2011)

I feel as though I have my hay priced according to quality and market and usually don't have any problem selling out. My regular customers pay the price I ask with no questions. I do have an "out of the field" price and an "out of the barn" price.

That said, I usually throw in a few bales extra. I figure there may be an occasional light bale or some other issue and I always appreciated the gesture when someone did it for me.


----------



## somedevildawg (Jun 20, 2011)

I regularly "discount" hay....it would be penny wise and pound foolish not to....it kind of goes back to the idea that farmer can and will be their own worst enemy at times. Does anyone think the giant retailers of this world don't discount products? It happens for a variety of reasons, but the number one reason is simple, inventory reduction. Inventory is cash flow, no cash flow is a dead business, a dead business will not prosper and will be out of business before long. To not discount would be foolish by my way of thinkin'....
Now I would prefer not to discount, but the reality of the situation dictates it.....if someone buys out of the field, I discount...why not? I'm not transporting back to the barn, not unloading twice, not storing for months, why not?
I've got a customer that wants to buy 200 rolls, should he pay the same price as someone that buys 2.....that's asinine. 
Customer buys 7k small squares a year....he buys better than the guy that buys 300..., it's just common sense. 
Customer wants cheap hay, I may discount some outside stored hay, it's not my primary market....
There are a lot of reasons to discount your inventory, just like there are a multitude of reasons why your hay should be priced higher, let's face it, farmers are generally not the best businessmen but the way I see it, discounting your product to move inventory just makes good financial sense and it happens in every business, why not hay?


----------



## azmike (Jan 4, 2015)

I keep breeding cows like crazy, this next year we will only sell hay very late winter as price hits the ceiling.


----------



## Teslan (Aug 20, 2011)

I find that article interesting. It says growers have an unending supply of buyers? I'm sure some of you in some areas don't. Also the article says some small growers over price their hay? I wonder what this articles definition of small growers is? Because here it seems the small growers. The ones that have an old small square baler and bale maybe 500 small square bales a year under price their hay which overall hurts the market.

For myself I give discounts to the large buyers of my first cutting hay. Not much. Maybe $5 a bale discount on a 3x3 bale just because I need to move some to make room for later cuttings And they are the ones that buy more then 200 bales at a time. I also give discounts to my longest termed customers especially if I know they are kind of struggling financially and buy hay that isn't so good sometimes and never complain.

The hard part I find is in a year like this year is shaping up to be with hay prices rising rapidly how nice am I willing to be to my bigger or long term customers? Or do I really take advantage of the higher prices? I did find that in 2012 when there was a drought and people that I never had heard from before came to buy offering a fair price to them didn't mean they would come back the following year.

I still kinda get a kick out of buyers when they ask if I give a quantity discount on 15 3x3 bales. At least when I'm in a good mood. When I'm not in such a good mood I find that request annoying.


----------



## siscofarms (Nov 23, 2010)

Price it for the 5 bales and under crowd and when the person walks up looking for the 100 rolls or more you give him a discount and you've made money and they feel good that they think they got a deal .


----------



## Swv.farmer (Jan 2, 2016)

I hate to sale hay.
But if I do I want all I can get out of it people don't realize how much it costs to put up good quality hay.so no discount here.


----------



## paoutdoorsman (Apr 23, 2016)

This has been an interesting thread. I'm at a point that I am wondering if I should discount my remaining hay to try to get the barn empty for the upcoming season, or hold the price carryover inventory in case we have a dry year. Would hate to discount it and then have buyers expect that to be the price next season.


----------



## r82230 (Mar 1, 2016)

paoutdoorsman said:


> This has been an interesting thread. I'm at a point that I am wondering if I should discount my remaining hay to try to get the barn empty for the upcoming season, or hold the price carryover inventory in case we have a dry year. Would hate to discount it and then have buyers expect that to be the price next season.


This is where everyone could be different. But knowing your personal cost per bale/ton to produce could be a starting point, then adding storage cost and/or storage losses (if storing) and lastly TVM (time - value of money) that your banker would want. Any price above that would be 'profit' and most folks don't go broke making a profit.

The difference could be how much profit you make (or possibly need)? Or how much profit are you willing to give up? Or, how much loss you can handle? Everyone could have completely different answers.

But I'm pretty sure that a banker would tell you that $5 in September is more value able than the $5 would be the following March. Whether or not a 'banker' is involved, could be irrelevant. It is either your money or someone else's that is tied up in inventory. There is almost always a cost to money/inventory.

Then you toss in the 'dry' year possibility, to make your decision even more difficult. I'll just add to your difficulty. "What if it is a great hay making year, with a glut of hay, dropping the market price?"

Time to punt the ball.

Larry


----------



## 8350HiTech (Jul 26, 2013)

paoutdoorsman said:


> This has been an interesting thread. I'm at a point that I am wondering if I should discount my remaining hay to try to get the barn empty for the upcoming season, or hold the price carryover inventory in case we have a dry year. Would hate to discount it and then have buyers expect that to be the price next season.


 If you reduce your price to clear inventory, make it clear that's why it's happening. Most people should understand the concept. Other industries have inventory reduction sales and somehow manage to sell product again later for regular price.


----------



## Josh in WNY (Sep 7, 2010)

Really wide variation in opinions on this... probably reflective of the various size/type/setups of operations that we all have. The past couple of years for my place has been a mix of small squares and 4x5 net-wrapped round of timothy/grass hay.

I normally price based on quality of the hay and the bale. Good hay cut at the right time and baled with no rain gets one price. Hay that was baled a little past prime, has a couple weeds or got wet, a little less on the price. I do provide 'discounts' for various things such as buying out of the field, large sales, or for picking hay up at the barn (rather than me delivering). Once the hay is stored in my barn though, I'm a lot less likely to drop the price. The only difference is when it gets to be this time of year and I don't want to be stuck with last years hay. I recently put up a 'barn clean-out' ad for the last of my hay in order to have an empty barn for this summer. I must of timed it just right because I had everything sold within a week. I dropped my price some, but not so much that I wasn't making something on it. I don't do this in order to prevent having 'old hay' but more so I don't run out of storage for this years crop.

The one issue I have with the article is that if hay is properly stored (inside, out of the weather), then the quality won't really degrade that much with time, so 'old hay' isn't necessarily 'bad' hay. I've sold two year old hay out of the barn that was better than what I put up a few weeks before the sale.


----------



## Vol (Jul 5, 2009)

I guess I am very fortunate compared to some others as I do not discount hay nor have I ever. If I have "bad" hay due to rain etc., I will round bale that hay and sell it to one individual that buys every round bale that I make. I do not have small sales as the individual customers that I have buy several hundred bales for the most part. When individuals inquire on buying a few bales I tell them that I have a 100 bale minimum. This also prevents a lot of phone calls when folks know this or that word travels. I price my hay what I think is fair and then that is what I hold to...maybe I am not a good businessman, but this strategy has worked for me here for quite a few years and I don't carry over unless it is intentional. I supply several co ops and feed stores in my area.

Regards, Mike


----------



## somedevildawg (Jun 20, 2011)

Vol said:


> I guess I am very fortunate compared to some others as I do not discount hay nor have I ever. If I have "bad" hay due to rain etc., I will round bale that hay and sell it to one individual that buys every round bale that I make. I do not have small sales as the individual customers that I have buy several hundred bales for the most part. When individuals inquire on buying a few bales I tell them that I have a 100 bale minimum. This also prevents a lot of phone calls when folks know this or that word travels. I price my hay what I think is fair and then that is what I hold to...maybe I am not a good businessman, but this strategy has worked for me here for quite a few years and I don't carry over unless it is intentional. I supply several co ops and feed stores in my area.
> 
> Regards, Mike


That's the key, no carry over unless it's intentional.....most are not fortunate enough to be in that situation for a variety of reasons. Not everyone supplies co ops and feed stores in the area, some are still trying to get to that point. With the high cost of production, having inventory tied up for months on end and not "turning" the inventory is not good business. I certainly didn't mean to say that if you didn't abide by these simple rules that you were somehow not a good businessman, quite the contrary if you have already gotten to the point where there is no carry over. But businesses, whether hay or retail goods, must strategically watch their inventory levels against demand, it's a balancing act at times but I'd rather have 5k in my pocket than 5.5k worth of hay in the barn if the new seasons on the way.....that means it's all outgo for a while, I could use the cash flow. It can eat you up on the other end if you happen to take out operating loans. 
Carryover can be a killer or it could be a boon, one never really knows...I like to mitigate my chances and watch that inventory/demand very closely.


----------



## swmnhay (Jun 13, 2008)

I'm glad I didn't discount my hay anymore then the market already had last yr and held some over.I sold it 33% higher priced this yr then I was getting last yr.

Market fluctuations and demands have to be looked at when deciding to discount hay.If the market is low I don't want to sell it lower yet.If the market is strong make sure it's all gone.


----------



## hog987 (Apr 5, 2011)

siscofarms said:


> Price it for the 5 bales and under crowd and when the person walks up looking for the 100 rolls or more you give him a discount and you've made money and they feel good that they think they got a deal .


Thats about what I do.
I started telling people who want a discount and tell me about so and so just over there selling their hay for this much lower price. " Whats their name? I should go over and buy all their hay". The look on the face is priceless. They grumble a bit than pony up and just buy the hay.


----------



## Josh in WNY (Sep 7, 2010)

somedevildawg said:


> That's the key, no carry over unless it's intentional.....most are not fortunate enough to be in that situation for a variety of reasons.


That's the problem I have, storage is short for the amount of hay I can put up. I prefer to have everything (squares and rounds) all under cover, it just makes better hay to sell. Having enough storage space to be able to carry over hay from one year to the next would be nice, but it also cost money. I just keep telling myself to take baby steps and someday I'll have the 45'x100' pole barn that will give me the room I need to not have to be cleaned out every spring... but then I'll want to put up more hay, so I'll need another barn and another tractor...  It's a vicious cycle.


----------



## Hayman1 (Jul 6, 2013)

Josh in WNY said:


> That's the problem I have, storage is short for the amount of hay I can put up. I prefer to have everything (squares and rounds) all under cover, it just makes better hay to sell. Having enough storage space to be able to carry over hay from one year to the next would be nice, but it also cost money. I just keep telling myself to take baby steps and someday I'll have the 45'x100' pole barn that will give me the room I need to not have to be cleaned out every spring... but then I'll want to put up more hay, so I'll need another barn and another tractor...  It's a vicious cycle.


Josh, there is just no such thing as too big a barn or too many tractors, unless you are the spouse, who rides horses...


----------



## endrow (Dec 15, 2011)

Getting old and I sold Hay all my life I wished I could say I never had a back off or discount hay prices but it would be a lie in this area the auction is very influential when I Hay price and unfortunately it fluctuates sometimes . For those of you who never had and never will take your price down during the season for anyone in any way. Should there be a drought or a problem and prices were to go up quickly do you still hold your price for all your customers old and new


----------



## Vol (Jul 5, 2009)

My prices are never set to take advantage of misfortune. If I had to deal with a local hay auction, I might have to see things differently as far as discounts. I mentioned in my post that I sell to several retailers. They know my prices do not fluctuate with conditions and I buy a lot of my inputs from them so they know it is a two way street....and we have had a good relationship for many years. I could sell my hay for even more than what I do, but I would have to deal with the mass public and their phone calls. I will average around $250/ton selling to retailers, but I don't sell them my alfalfa/orchard grass mix. All of that goes straight to some large horse people and that particular mix will average around $300/ton. There is no doubt that each one of us has to adapt to our own set of business conditions, but to this day I have not discounted because of the need to liquidate inventory. I also think that some folks might not fully understand how much hay they are capable of marketing in their specific area...especially for those that are just starting out.

Regards, Mike


----------



## swmnhay (Jun 13, 2008)

My prices fluctuate with the market and I would call a discount selling below the market.

If market prices are low I'll be a little over the market.

If prices market prices are high I'll be slightly under the market for my regular customers.


----------



## somedevildawg (Jun 20, 2011)

In terms of pricing....I'm always the guy with the highest priced hay in my neck. I'm also the guy with the really nice looking weed free hay that's put up right. I don't mind commanding a higher price, a higher quality product dictates that.....but with respect to how to price hay in drought years, I'm mixed....I had a very good account that I kept hay for during the drought two years ago, while other folks were running out and couldn't find hay, they never had a worry, I made sure they had plenty, at the normal price...not the drought price  FF to this year, we are 1 hour late making a delivery (2.5hrs away) and they dropped me like a fly. There is very little allegiance in the hay business, if you get them, do all you can to keep them, but I wish now that I woulda sold those 1000 bales that year to someone else for 8$ instead of the 6$ I sold them for to my "regulars". I prefer feed stores.....let them deal with the public, they can piss me off, life is too short....


----------



## Vol (Jul 5, 2009)

Usually, there is no thought of appreciation when it comes to the individual hay customer. They will leave you at the drop of a hat. But, I have had feed stores drop me over .25 cents....I usually just smile and tell them, "ok, when you have problems with the new guy, just give me a call". I might burn a bridge with an individual customer if he is a particular AH, but I don't ever do it with the retailers....as their management can change overnight and that could allow for me to get my foot back in the door.

Regards, Mike


----------



## endrow (Dec 15, 2011)

somedevildawg said:


> In terms of pricing....I'm always the guy with the highest priced hay in my neck. I'm also the guy with the really nice looking weed free hay that's put up right. I don't mind commanding a higher price, a higher quality product dictates that.....but with respect to how to price hay in drought years, I'm mixed....I had a very good account that I kept hay for during the drought two years ago, while other folks were running out and couldn't find hay, they never had a worry, I made sure they had plenty, at the normal price...not the drought price  FF to this year, we are 1 hour late making a delivery (2.5hrs away) and they dropped me like a fly. There is very little allegiance in the hay business, if you get them, do all you can to keep them, but I wish now that I woulda sold those 1000 bales that year to someone else for 8$ instead of the 6$ I sold them for to my "regulars". I prefer feed stores.....let them deal with the public, they can piss me off, life is too short....


 Been there and done that I would do it again because that's what you have to do to stay in this crazy business


----------



## endrow (Dec 15, 2011)

swmnhay said:


> My prices fluctuate with the market and I would call a discount selling below the market.
> 
> If market prices are low I'll be a little over the market.
> 
> If prices market prices are high I'll be slightly under the market for my regular customers.


 We try to price that way as well. I also agree with others procedure for storing hay would be to go to the field sometimes up to 12 miles away all the hay home let it sweat out on a trailer for 24 hours or more before storing it in a barn and now the stored in the barn depending where the barn is I have to hold the skid loader down and put it in the barn and then when it's time to sell it maybe all the skid loader back down and load it up. If I can move it right out of the field I offer a discount and it's a win-win situation for both of us. The dairy guys are always looking for ways to save a buck, and it's only going to get worse..... up this way there are a lot of feed stores that sell hay as well and that system works out good for some but only a fraction of the hay is sold through feed stores and the volumes are handled in a different manner. Believe me I have often woke up in the morning and thought I would rather sell half as much for double the price


----------



## swmnhay (Jun 13, 2008)

Everyone likes to be sold out but It bothers me as much if not more is to be out of hay to sell in late winter-early spring.Perfect scenario would be shipping out the last bale as you are cutting first crop.

Here there is usually a deman and price spike March- May.I hate to miss out on that but I am this yr as I'm sold out.Last yr it didn't happen and I had hay left over.


----------



## endrow (Dec 15, 2011)

swmnhay said:


> Everyone likes to be sold out but It bothers me as much if not more is to be out of hay to sell in late winter-early spring.Perfect scenario would be shipping out the last bale as you are cutting first crop.
> 
> Here there is usually a deman and price spike March- May.I hate to miss out on that but I am this yr as I'm sold out.Last yr it didn't happen and I had hay left over.


Yes corn planting time was always a hot time here for sales but lately you cant count on it


----------



## endrow (Dec 15, 2011)

When you talk about the market price for hay in our area it is set by the auction price which work pretty good for many years, the average guy would understand that if you didn't have to load it and haul it and sit at the auction for an hour and a half and pay commission and then deliver it and unload it, he could discount the hay that much from the auction price and Wallah it worked great and for many years the auction price was usually a real good price. So good that there was auctions in our area 6 days a week and many of those days a guy would have his choice of two different auctions that he could go to with hay . For that many loads to be sold on a daily basis it always took order buyers,, guys who go to the auction take an order over the phone and they buy the hay exactly what you order. You can do much better off with an order buyer because if he has 25 orders he will never bid against himself, so it's probably just like the cattle markets it can be good can be bad the auction set the local price and a half a dozen order buyers control the price of the auction. The order buyer just gets 3 bucks a ton to buy hay so the cheaper he can make it the more orders He'll Do by the end of the day


----------



## swmnhay (Jun 13, 2008)

The largest hay auction here wasn't just satisfied making commision they started buying the hay if sold low and stock pilling it untill the market was higher.Plus brokering of it.Plus shipping it in and out.Any time the price would spike a little they would flood the market keeping the price down.

Alot of guys that normally sold there no longer do.


----------



## Vol (Jul 5, 2009)

That is interesting what some of you fellas have to deal with because of auctions. There is none of that here due to no hay auctions. It will be interesting to see how the coming changes in the dairy industry will affect you folks as far as hay is concerned and see if it has any far-reaching affects. Nothing stays the same.

Regards, Mike


----------



## swmnhay (Jun 13, 2008)

Vol said:


> That is interesting what some of you fellas have to deal with because of auctions. There is none of that here due to no hay auctions. It will be interesting to see how the coming changes in the dairy industry will affect you folks as far as hay is concerned and see if it has any far-reaching affects. Nothing stays the same.
> 
> Regards, Mike


In the 80's we hauled small squares to Sauk Centre hay auction and it all went to smaller dairies that fed hay in the barn in stantions.They also hauled alot to Wisconsin directly to dairies when there was a drought there.

Sometimes we would take pickup & 5th wheel and a semi load and load the pickup and 5th Wh on semi trailer for the ride home.

200 semi loads X 800 bales = 160,000 sm sq bales one yr out of this area.I would have a hard time finding 1 semi load here now

Yep things change!


----------



## endrow (Dec 15, 2011)

Here I think the hay auctions are a good thing as with any auction the people who are selling are always trying to figure out a way to manipulate things to make the prices go higher the people who are buying are always doing the opposite. I believe if the small dairy farms go by the wayside and the Amish no longer Farm with horses the hay auction thing in central Pennsylvania will really go to the dogs....... an auction is a unique thing I believe I could write a book about auctions.. up until the time I was 14 my grandparents I had a cattle auction right here in our farm we lived in the house right beside the Auction Barn.. in my younger years to make some extra money I worked at a local auto auction a couple evenings a week. And then of course I went to pretty many hay auctions over the years


----------



## reede (May 17, 2010)

I offer a 50cent discount if they get the hay the day of baling. I use an EZ trail bale basket, and dump piles of 80-100 bales at the barn lot. If I don't have to put the bale in the barn, and then get it out again later, it is definitely worth something to me. So, I price the hay as if I put it in the barn, and then get it back out again. Discount for not having to go to the extra labor. If you only touch the bale once, putting it on someone else's trailer, it is pretty easy to handle a bunch of them without it being too bad.

Usually, the night before baling, I will have trailers scattered out across the barn lot. Drive between them with the bale basket, dump, and have the help show up when you are done baling. Then call the hay buyers to pick their trailers up.


----------



## Holte-Hoff (Jul 31, 2015)

This is a interesting thread! I'm trying to get a handle on this years hay season and put together a little mailer that will go to my year after year buyers. I was going to offer a 10% discount if you per-order by June 1, plus 5% if picked up in the field, but they must put 50% down to get the discount. Once all said and done its about $5/bale. Ive got to good a day job this year to be taking time off making 5-600 rounds and not sell them.

Here it is! Tell me what you guys think. prices might be a little low for some of you to stomach, but most guys around here sell for $15/bale and and costumers complain to me about how there animals don't eat my hay as fast as the competition. (No way stupid! Mine weigh twice as much!!)

Ive learned so much from Hay Talk ,thanks much!

*Holte-Hof*​Phone:​*2018 Hay Pricelist*​All Round bales are 4x5, high density, and net wrapped as standard.​
*Product*​
*Estimated Weight*​
*Price Per Bale*​
Alfalfa Grass Hay Mix

1,000 Lbs

$38

Grass Hay

1,000 Lbs

$30

Small Square Bales 1st Crop

45-60 Lbs

$3.50

*Options, Preorder only*​
*Price Per Bale*​
Twine Tied Bales (Eclipse Brand photodegradeable twine)

Add on $1.50/Bale

John Deere B-wrap (indoor quality storage when stored outdoors)

Add on $10/Bale

*Pre-orders*

All preordered hay will be tested and have a minimum RFV of 80 (standard for beef and heifer quality) A 50% down payment is required to preorder and will qualify for discounts listed below.

*Discounts*

A 10% discount will be applied on preorders before June 1st and an additional 5% if picked up in the field.

*Shipping*

Holte-Hof is not responsible for setting up hauling; we will try to coordinate with haulers and customers. Shipping can be arranged with the freight companies below.

Freight Haulers​&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;​


----------



## Josh in WNY (Sep 7, 2010)

Holte-Hoff, I don't do testing on my hay, so I'm not that familiar with how that works, but if they buy off the field, how do you guarantee the RFV of 80? Given that you said this is going out to regular customers, it might not matter as much since they already know what kind of product you have.


----------



## somedevildawg (Jun 20, 2011)

I'm purty sure you can guarantee that....if it's gonna be less than that, I would assume all bets are off and another marketing strategy is employed, my thoughts anyway


----------



## 8350HiTech (Jul 26, 2013)

If your customer base is accustomed to paying for light bales, I think I’d be making lighter bales rather than charging light bale price for heavy bales.


----------



## r82230 (Mar 1, 2016)

Josh in WNY said:


> Holte-Hoff, I don't do testing on my hay, so I'm not that familiar with how that works, but if they buy off the field, how do you guarantee the RFV of 80? Given that you said this is going out to regular customers, it might not matter as much since they already know what kind of product you have.


With alfalfa in the mix, I would think RFV of 80 would be pretty easy, at least in MY area. Anything below a RFV of 90 is considered 'utility' hay.

Larry


----------



## Josh in WNY (Sep 7, 2010)

somedevildawg said:


> I'm purty sure you can guarantee that....if it's gonna be less than that, I would assume all bets are off and another marketing strategy is employed, my thoughts anyway





r82230 said:


> With alfalfa in the mix, I would think RFV of 80 would be pretty easy, at least in MY area. Anything below a RFV of 90 is considered 'utility' hay.
> 
> Larry


Thanks, having never dealt with hay testing, I just wasn't sure.


----------



## Hayjosh (Mar 24, 2016)

I'll be getting my first hay testing results from the local farm bureau here probably tomorrow, I'm pretty anxious to see how it does.

I haven't sold a lot of hay in the past but I offered three price tiers for small squares...the lowest if I drop it in the field and they pick it up, middle price if they buy it off the wagon or I pull their wagon through the field, and the highest if they buy it out of the barn. I am limited on storage space for hay so as much as I'd like to stock pile it for late winter I have tried to sell as much as I can out of the field.

This year that will change as I have more hay storage capacity and I'm actually going in business to sell it. I just sold 300 bales of first cut off the wagon this weekend for $3.75/bale. The guy lives between my house and the field so I just have to pull in his driveway and throw the hay off in a pile, then he'll haul it to his hay shed down the hill. This is actually doing me a big favor and makes my logistics a lot easier, so it ends up being a pretty sweet deal for me.


----------



## 8350HiTech (Jul 26, 2013)

Hayjosh said:


> I'll be getting my first hay testing results from the local farm bureau here probably tomorrow, I'm pretty anxious to see how it does.
> 
> I haven't sold a lot of hay in the past but I offered three price tiers for small squares...the lowest if I drop it in the field and they pick it up, middle price if they buy it off the wagon or I pull their wagon through the field, and the highest if they buy it out of the barn. I am limited on storage space for hay so as much as I'd like to stock pile it for late winter I have tried to sell as much as I can out of the field.
> 
> This year that will change as I have more hay storage capacity and I'm actually going in business to sell it. I just sold 300 bales of first cut off the wagon this weekend for $3.75/bale. The guy lives between my house and the field so I just have to pull in his driveway and throw the hay off in a pile, then he'll haul it to his hay shed down the hill. This is actually doing me a big favor and makes my logistics a lot easier, so it ends up being a pretty sweet deal for me.


Why is on their wagon more expensive than on the ground? Or are you stacking them?


----------



## Shetland Sheepdog (Mar 31, 2011)

I, also, have a similar price tiering! Each time I handle the bales the price goes up 50 cents a bale!


----------



## Hayjosh (Mar 24, 2016)

8350HiTech said:


> Why is on their wagon more expensive than on the ground? Or are you stacking them?


Because we're still handling the hay. I won't give them a price break to stack it themselves on their wagon because that means I'll have guys sitting and watching that are still getting paid, and I don't want to assume that liability of them being on the wagon and blaming me if they get hurt. It's also going to use more fuel to pull around the baler + loaded wagon as opposed to just the baler. So they can watch me from the comfort of their air-conditioned vehicle while I put up their hay, or pick it up themselves in the field (it will be the last stuff I bale in that case), or they can drop the wagon and pick it up loaded, but they're responsible for strapping it down securely before hauling. Once their wagon is hooked to their vehicle nothing's on me anymore.

If I'm just dropping them on the ground I do it last so I don't have to drive around the bales, and my hired help can get started on unloading the rest of the hay in the barn while I'm still running through the field. Really the only guy I have who wants it dropped on the ground only wants 25-30 bales from each cutting for his goats because he just has a little utility trailer to haul it. If I end up dropping too much I toss the rest in the back of the truck, too little I can grab a few out of the barn.


----------



## skyrydr2 (Oct 25, 2015)

I give a good discount if they want it in the field but boy they better be there to pick it up! Or I will drop the kicker and hook up the wagons and they will pay full price! And pick it up out of my barn! I will not drive around their bales if they dont follow my brother's explicit directions thwy will have run over bales...only once has this happened and my brother flipped on them lol. I told them not to call me unless they have their crap together. 
Good customers usually get an early pick up break but If I need to store it for them its market price. I WILL NOT HOLD HAY OVER! You want it you better get it or it will be sold to the next guy. This has only happened a few times over the years but it does happen! And boy you better call if you can't make it! This bends me all out of shape something wicked!


----------



## Ray 54 (Aug 2, 2014)

I told them not to call me unless they have their crap together.
Good customers usually get an early pick up break but If I need to store it for them its market price. I WILL NOT HOLD HAY OVER! You want it you better get it or it will be sold to the next guy. This has only happened a few times over the years but it does happen! And boy you better call if you can't make it! This bends me all out of shape something wicked!

Your not selling much hay if a customer has not gone off on you. My conditions are such I can leave hay out in summer. Had multiple semi loads of oat hay and a trust fund baby called, it is for sale until I have money in hand. Three week latter she called again,your to late, I can see it,sold to a broker that was always good on the payment. She went off on me cussing like I had never been cussed. Oh well she is dead I am tired time goes on.


----------



## skyrydr2 (Oct 25, 2015)

Ray 54 said:


> Your not selling much hay if a customer has not gone off on you. My conditions are such I can leave hay out in summer. Had multiple semi loads of oat hay and a trust fund baby called, it is for sale until I have money in hand. Three week latter she called again,your to late, I can see it,sold to a broker that was always good on the payment. She went off on me cussing like I had never been cussed. Oh well she is dead I am tired time goes on.


 LOL that IS NOT HAPPENING! They are told right up front that I can not and will not hold hay!
I sell out every year and usually have to buy hay just to keep the good ones happy, so anyone going Off on me... nope aint gonna happen.. they will find their butts shining my boot first as they are ushered off my property! Over the phone.. I just simply hang up. 
Running a farmstand too I have seen the loony customer OH YEAH!
99% of them were on some sort of government dole and had the AUDASITY to question my prices and quantities of produce and meats ? When I told them they could have anything they wanted for free if they helped weed a row they got completely offended and left, LOL. I have been dealing with the public way too long to let them get to me.


----------

