# A customer story



## swmnhay (Jun 13, 2008)

A netwrap customer of mine that sells hay kept his price down to a guy when the price was high a couple yrs ago because he was a larger good customer.Sold it for 1/2 of what he could of got at auction.I told him at that time he was nuts for selling that cheap, $80 a ton under the market.

So yesterday I stopped at his place to BS and he tells me the same guy just backed out on 100 bales of hay because he can buy it for 20 a ton less at auction.Plus the fact my friend delivered it for that price ,at auction he had to drag it home from auction and return trailers.

Then on top of that he had bought some seed from the guy. I also sell the same brand and he marked it up over list price!!! I sell under list price.

Some people I wonder how they sleep at night.


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## BWfarms (Aug 3, 2015)

That lesson was learned by my relative. He sold some land to a guy for a price that was less than he could have got for it because he thought he was helping the guy out. Only to hear this fellow talking how he got the better end of him. Next time the guy wanted to buy some adjacent land, my relative stuck the price high and guy had no choice but to pay his price. One thing you don't do is take advantage of our generosity, we believe in karma (sometimes we dole it out).


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## carcajou (Jan 28, 2011)

A friend of mine gives me a hard time about selling at less than market value too. Last year, when hay was stupidly high, i sold at 30% under market price to my customers. I just don't see how people can take advantage of their neighbors and customers and live with themselves. But many seem to feel they need to.


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## hog987 (Apr 5, 2011)

Two years ago I gave my one neighbor a deal on hay and trucked it to her at cost. Hoping she would start buying hay from me cause she buys about 200 rounds a year and is only two miles from my one field. Last year with the drought prices went up. I set my price by talking with some of my other customers and what they were willing to pay. She didnt like the price. Bought big squares from someone else. We had a mild winter so she didnt feed all the hay. But she also didnt cover the hay. Now the hay is wrecked and she can't feed it to her boarded horses. Now she sold it to a cattle guy at a discount.

There is no loyalty and honor among thieves and about half of hay buyers.


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## mlappin (Jun 25, 2009)

I had a horse buyer like that, price was $40/bale year round. He was always on time, even fixed a few tires on his trailer when he showed up when they were about flat. Would hold back one of the small hoop buildings which hold 300 bales for him.

One summer was about done with first and still no horse guy, waited another month or two as it was a good spring and figured maybe he finally got around to reseeding his pastures and had plenty of grass. Called em five or six times and no calls back. So ended up having 300 extra bales to move that winter.

Two years later finally heard from him, was getting towards the end of summer 2012. Was selling first cutting for $80 bale and was having no problem emptying barns, he called wanted to know if I had hay, asked him what happened, said he thought the daughter had called me and told me they found some closer, told em thats fine but it left me in a bind that year and I never heard anything form his daughter, wanted to know if I'd sell it to him for the old price of $40/bale, told em nope, going price for new customers is $80/bale.


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## Vol (Jul 5, 2009)

I just try to be fair.... Not high and not low. I do believe that one reaps what he sows.

Regards, Mike


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## slowzuki (Mar 8, 2011)

I hold my pricing steady regardless of the market here but I don't have a problem with folks that adjust pricing based on demand. It helps balance how far people are going to truck hay and what quality of hay they will feed.


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## rjmoses (Apr 4, 2010)

I like to charge the going rate at auction, but not less than the cost of production.

Ralph


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## Vol (Jul 5, 2009)

I wish we had hay auctions here....I think it makes customers(public) more aware of what quality feed is going for...but I do know that with some that it would make no difference.

Regards, Mike


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## hog987 (Apr 5, 2011)

The problem with the auctions here is all the buyers quote the lowest reported post and the buyers report the higest. But with out being at the auction to see quality and size of bales to match prices to, there is no way of knowing what is a fair price.


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## IHCman (Aug 27, 2011)

Vol said:


> I wish we had hay auctions here....I think it makes customers(public) more aware of what quality feed is going for...but I do know that with some that it would make no difference.
> 
> Regards, Mike


I also wish we had hay auctions around here for the same reason.


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## mlappin (Jun 25, 2009)

hog987 said:


> The problem with the auctions here is all the buyers quote the lowest reported post and the buyers report the higest. But with out being at the auction to see quality and size of bales to match prices to, there is no way of knowing what is a fair price.


Ditto. Or&#8230;one load of good horse hay in idiot bricks, it brings almost $300/ton, next week their is ten loads, price takes a huge dump. No where in either auction report is mentioned quality of the hay sold.

I've been to the Saturday auction where only one load of good horse hay was there in small squares, the rest was crap, only load worth having brought $350/ton or a similar obscene number, next week ten loads of the same or better hay shows up. Have done the same with a load of high quality rounds and get close to $250/ton, the next week will have three times as many loads of rounds and most is crap.

Auctions pretty much set the price here for the most part. Just looking in the Farmers Exchange at the auction report doesn't give a producer a true ideal of what hays worth, I usually attend several in a row and go from there when setting prices.


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## swmnhay (Jun 13, 2008)

One auction here lists every load of hay so you can see if there is a high priced load or the low priced ones also.It was a pretty good place to sell at until they got their own trucks and hauled more hay from farther distances and basically flooded the market keeping the price down.They also started just brokering hay so people didn't even have to bid it up at the auction to get it.


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## Vol (Jul 5, 2009)

Some of the auctions I see Ralph Moses list has the hay broken down into quality grades and types. I suppose it is up to the auction house as to how it will operate.

Regards, Mike


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## swmnhay (Jun 13, 2008)

I like the way Rock Valley lists the auction,but don't like the prices they are currently.

FA-39--
SIZE BALES $/BL
3x3 6 @ 50.00 
SIZE LBS $/TON CUT
3x3 51320 135.00 1st
3x3 27640 115.00 3rd
3x3 47940 100.00 2nd
3x3 56300 92.50 3rd
3x3 49420 85.00 2nd 
3x3 63180 85.00 1st
3x3 46700 80.00 3rd
3x3 47860 75.00 2nd
3x3 57560 75.00 1st
3x3 49020 70.00 1st
3x4 47880 110.00 1st
3x4 44820 82.50 1st
3x4 52080 80.00 3rd
lgrd 57300 130.00 2nd
lgrd 56800 130.00 2nd
lgrd 25340 100.00 2nd
lgrd 55940 100.00 1st
lgrd 51300 97.50 2nd 
lgrd 41460 92.50 3rd
lgrd 43440 92.50 3rd
lgrd 48510 92.50 2nd
lgrd 48600 92.50 2nd
lgrd 43860 92.50 3rd
lgrd 53780 92.50 1st
lgrd 52020 90.00 2nd
lgrd 49020 87.50 2nd
lgrd 43940 87.50 2nd
lgrd 42940 85.00 1st
lgrd 50980 85.00 1st
lgrd 52360 85.00 2nd
lgrd 41220 85.00 1st
lgrd 42740 85.00 1st
lgrd 50880 82.50 2nd
lgrd 41440 82.50 2nd
lgrd 42760 77.50 1st 
lgrd 14820 77.50 2/3 
lgrd 41540 75.00 1/2
lgrd 38080 67.50 1st

GRASS-30---
SIZE LBS $/TON
3x3 42300 87.50 
3x3 43080 85.00 
3x3 11580 72.50 
lgrd 45260 95.00 
lgrd 45820 92.50 
lgrd 19280 90.00 
lgrd 46560 90.00 
lgrd 37560 90.00
lgrd 38880 87.50 
lgrd 53580 87.50 
lgrd 30380 87.50 
lgrd 46160 87.50 
lgrd 54700 80.00 
lgrd 40320 80.00 
lgrd 55780 80.00 
lgrd 34720 77.50 
lgrd 55140 72.50 
lgrd 47600 72.50 
lgrd 35780 70.00 
lgrd 55000 70.00 
lgrd 47460 70.00 
lgrd 44560 70.00 
lgrd 43360 70.00 
lgrd 48920 65.00 
lgrd 42200 65.00 
lgrd 37080 65.00 
lgrd 47600 62.50 
lgrd 22060 62.50 
lgrd 61040 60.00 
lgrd 20420 60.00


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## rjmoses (Apr 4, 2010)

Vol said:


> Some of the auctions I see Ralph Moses list has the hay broken down into quality grades and types. I suppose it is up to the auction house as to how it will operate.
> 
> Regards, Mike


Most of these reports are from USDA trained reporters who can judge quality and weight fairly accurately.

Here's the USDA links:

For general ag markets: https://www.ams.usda.gov/market-news/livestock-poultry-grain

For hay related auctions: https://www.ams.usda.gov/market-news/hay-reports

Specific examples:

Illinois general hay: https://www.ams.usda.gov/mnreports/gx_gr310.txt

Aurthur, Il, auction: https://www.ams.usda.gov/mnreports/gx_gr312.txt

Look at the bottom of the reports for quality definitions.

Hope this helps

Ralph


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## JD3430 (Jan 1, 2012)

I'm pretty much done with horse people and selling them hay, which makes sense since I do all round bales anyway. 
I don't like "classifying" people, but most (not all) horse people, especially women, are freakin emotional, unreasonable, CHEAP gigantic pains in the ass. I post up an ad on CL that states VERY clearly where I'm located, price, minimum bales purchase, type of grass, moisture %, when baled, sprayed/un-sprayed, etc. yet when these pea brained idiots call, they ask me questions WHICH ARE ALL ANSWERED IN THE CL AD!!!! They talk over you, interrupt you when you attempt to answer questions, then start the "negotiations" BEFORE THEY EVEN SEE THE HAY!! 
I much prefer to make cattle hay and mushroom hay. I admit I'm not making the most refined hay in the world (I admit I'm not the best) so it suits me better. However, I also have to sell hay cheaper. 
I know it appears a bit of bad attitude, but I get 5 calls a week like this. What is it with them? They can't read? They think all hay farmers are patsies?
I have a few existing horse customers I like and that's really all I want for now. I don't want many more new customers. 
Cattle hay? ALL DAY LONG BRO!!!

You guys who make beautiful small squares have my admiration. The little bales, the patience with rain, baling them in perfect conditions, the storage, the Sunday phone calls, the horse people? You guys have the patience of Jobe.


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## PaMike (Dec 7, 2013)

At least your not married to one of those crazy women...I cant imagine the poor man that marries some of those girls...


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## Waldo (Apr 29, 2016)

Horse people the Bain of my life,I wouldn't have a problem if the horse was buying.here their is a new generation of pretty save young women who all talk on face book and know what they want low gi grass or grassy Lucerne
. So gone out and did the research, a lot of it from your university's, so I can know talk the talk and hopefully walk the walk .so know I have cut back the Lucerne ansown more grass mixes. Demand is very good and getting same or Evan a little more than Lucerne. B UT still got some of the my horse w,nt eat the hay ,but they always come back with a third of a bale and want money back which of course. I give with a smile .


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## Teslan (Aug 20, 2011)

During the drought a couple years ago I also sold hay a little cheaper. It was my first or second year selling 3x3 bales. I thought I would sell it a bit cheaper and all the new customers that were desperate for hay would appreciate my hay and come back the following years. That did not happen at all. But I know somewhat why. I don't follow up. I have a distinct feeling that hay buyers tend to lose phone numbers and contact numbers of the hay sellers they like. Then wait for a new craigslist ad. I have a feeling that if I mailed out thank you cards, reminder cards either by snail mail or e-mail. Or did group texts I would keep a lot more customers year after year. Just like any other sales job. Need to follow up. I'm not good at it and I haven't really needed to nor have the time to set that up. But then if I have one sorta hard year where my hay gets rained on (like this year my hay is attracting rain) they will think my hay is always crappy and always going to be crappy and go somewhere else. I always consider myself loyal to a good sales person or company. I don't go jumping around just looking for the best deal. That a good relationship is better then the best price sometimes. But many people these days don't believe in that. It's in any type of sale not just hay. If you aren't reminding them of what you are selling all the time people tend to forget about you and wander. Or they happen upon a fast talking aggressive sales person (hay broker) that promises the moon and can't get away. It's happened all the time in my real estate sales also. I try and treat people like I like to be treated. Which is give me good service the first time and I'll remember your name going forward. But don't bother me every month with calls or letters or whatever. I guess I'm different though most people have to be handheld and not let go or they wander. Even a good friend of mine thought he was kind enough to call me to let me know he listed and sold his house with some agent. I asked him how come you didn't call? He said well I just thought I would see what he had to say and before I knew it we had sold our house and bought another one. Sold his for $20,000 to low also. Which proves I guess I should have been calling him every month to see if he needed any real estate work done. Probably still wouldn't have mattered. Same thing is for every kind of sale. Including hay I guess.


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## PaMike (Dec 7, 2013)

I used to do the follow up post cards when I sold a lot of firewood. It worked real well. If I had a customer that was decent I kept their contact info. If I had a customer that was a pain, a far drive etc, I didn't bother to keep their contact info. I sent out postcards the next fall telling them my price. I mailed the cards after hay was done, and I had time to load/haul wood. It worked very well to build a GOOD customer base, and help group calls/work to when I had time to do it.


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## swmnhay (Jun 13, 2008)

I don't call people much but I probably should.My compitition hounds my customers it seems like.Most tell them to buzz off but sometimes I loose a guy for a yr then he usually starts buying from me again.

I use handouts with my name on.Magnetic bussiness cards,shaped like a Rd Bale of hay.Well that was my idea of it anyway but nobody seemed to get that.Magnetic refrigerator clips.pocket knives,caps.

I plan on doing a mailing list for next yr,maybe a post card or a letter??


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## Teslan (Aug 20, 2011)

Denver Broncos refrigerator schedules here are a hit. Though you have to send them in July or August or you look silly. Probably would be good in any other sales also. Also fridge calenders. Sticking your name in front of them every time they open the fridge door is a good thing. I really ought to do something like that. Depending on your size of list giving away knick knacks and such can get expensive in a hurry.


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## r82230 (Mar 1, 2016)

Teslan said:


> Denver Broncos refrigerator schedules here are a hit. Though you have to send them in July or August or you look silly. Probably would be good in any other sales also. Also fridge calenders. Sticking your name in front of them every time they open the fridge door is a good thing. I really ought to do something like that. Depending on your size of list giving away knick knacks and such can get expensive in a hurry.


For my 'off farm' job I give different items, every year or so. The last item, I had people asking for more, to Tes point depends on your budget. What was the item portable, battery for charging cell phones (called a power bank, in my case). Cost was around $6 each. Women, liked them the most.

Larry


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