# One big customer that buys all your hay a year or smaller customers that buy smaller amounts?



## Teslan (Aug 20, 2011)

Today a lady called me to ask about my grass hay. She kind of had an attitude from the start by saying she only buys per ton not per bale. I said I only sell per bale. She said she buys 300 tons of grass hay a year. That would take nearly my whole year supply of grass hay. Meaning I would have to tell other customers to go away. So my question is for you guys. Is it better to have one or many customers? My belief is it is better to have quite a few different loyal customers. The reason is that if you have just one hay customer for all your production some day that one customer is not going to buy from you. For many various reasons. Then you have to start over finding buyers. I guess this depends on the amount of hay you put up a year. What say you? And this lady who called me I will not be selling too I guess as she needed immediate delivery and I only deliver hay in the fall/winter if I even have any to deliver. She told me 5 times she buys 300 tons a year.


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## AndyL (Mar 9, 2013)

If you already have loyal customers that have been buying, stay with them. Then if you can sell some to her, then fine. She may be feeding you a line of BS. But I would satisfy my loyal repeat customers first.


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## dubltrubl (Jul 19, 2010)

I'll vote for the multiple smaller customers. I'd be pretty uncomfortable selling everything to a single buyer. In short order they'd have me by the shorts if they wanted. We rely on moving our hay on a regular basis since we sell everything. I've never developed a taste for kissin a** and ain't interested in cultivating that talent either,,, 

Regards,

Steve


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## mlappin (Jun 25, 2009)

Keep your loyal ones, she may buy from you one year and disappear. May only take half what she claims and disappear. I wouldn't do it even if she'd sign a contract.


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## swmnhay (Jun 13, 2008)

Keep your loyal customers..

I've had guys that bought 1000 ton per yr and then loose them after 3-4 yrs for what ever reason.So then a guy is scrambleing to market the hay.The last time it happened I got the plow out and kept my loyal smaller customers.$7 corn made that choice easy.

I had a guy last yr wanted to buy it all.Of course he wanted it cheaper and I wouldn't of had hay for my loyal customers.Easy decision there also.


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## rjmoses (Apr 4, 2010)

AndyL said:


> If you already have loyal customers that have been buying, stay with them. Then if you can sell some to her, then fine. She may be feeding you a line of BS. But I would satisfy my loyal repeat customers first.





dubltrubl said:


> I'll vote for the multiple smaller customers. I'd be pretty uncomfortable selling everything to a single buyer. In short order they'd have me by the shorts if they wanted. We rely on moving our hay on a regular basis since we sell everything. I've never developed a taste for kissin a** and ain't interested in cultivating that talent either,,,
> Regards,
> Steve


I agree with both of the above posts. Multiple, smaller, loyal customers are many times better than one, or even several, large customers.

If one small customer gets into trouble, their needs change, they die or get divorced, etc., you will get hurt---a little. One big customer, no matter how loyal, can dink you even though it is not intentional. When they're out of business, you're stuck, or out of business.

Odds are, this woman is playing a game that goes something like this:

She'll bargain with you, but not too hard, the first year. Then, sometime around the second/third year when you are fully committed to her, she'll put the hammer to you and you'll be in a position of having to take her deal. I've seen this happen several times to small businesses.

My suggestion: First, figure out the maximum tonnage that you could give her without seriously hurting yourself or your loyal customers. Then figure out you cost/price per ton so you know your bargaining position.

Whether you sell by the bale or by the ton makes no difference. Take 10 bales, weigh them, then figure the average weight per bale. Then figure your per bale price as price per ton. E.g, 40 fifty lb bales at $5/bale is the same as $200/ton.

BTW: The fact that she said she buys 300 ton/year five times tells me that she is trying to impress you or trying to entice you.

Hope this helps.

Ralph


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## DYNOBOB (Nov 29, 2011)

...and she bought 300 tons from someone last year...but not this year.

.


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## Teslan (Aug 20, 2011)

DYNOBOB said:


> ...and she bought 300 tons from someone last year...but not this year.
> 
> .


Exactly. Where did she buy last year. I'm not going to sell to her. She hung up with no indication she will call back. She was calling on some cheap somewhat weedy hay that I had already sold out of and taken the ad off craigslist a couple days ago. When I told her what the price of the good stuff was she didn't seem to like that. She most likely runs a horse boarding place and in my experience only 1 out of 4 horse boarding place owners know anything about hay or really horses. Personally I like the customers best that buy 25-100 3x3x8 bales a year. Most of them have a truck and gooseneck to be able to haul themselves to save some money. Now another question. Would you ask a big customer for references? Like who previously provided your hay? Why did you leave?


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## rjmoses (Apr 4, 2010)

Teslan said:


> Now another question. Would you ask a big customer for references? Like who previously provided your hay? Why did you leave?


All of these and then some!

Ralph


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## Teslan (Aug 20, 2011)

rjmoses said:


> All of these and then some!
> 
> Ralph


The best customers don't even have to be asked. I just got a call from a guy from New Mexico. He buys a semi of large square alfalfa a year. He's been buying from the same guy for 15 years, but that guy is old and sick and will not be growing any alfalfa this year so this person who called is venturing out trying to find hay of the quality he is used to. He doesn't know that you can really mess up alfalfa if you bale it too dry as well as too wet. He didn't really like my price so I just told him if he calls around ask what time of day do they bale. If they say afternoon hang up. Never in the mountain west do you bale alfalfa in the afternoon and end up with anything but sticks.


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## slowzuki (Mar 8, 2011)

I've had this happen at the right time too. I was selling small squares a few bales at a time, long time to move them all.


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## RockmartGA (Jun 29, 2011)

Count me in with the multiple customers vote.


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## JD3430 (Jan 1, 2012)

Teslan said:


> Today a lady called me to ask about my grass hay. She kind of had an attitude from the start by saying she only buys per ton not per bale. I said I only sell per bale. She said she buys 300 tons of grass hay a year. That would take nearly my whole year supply of grass hay. Meaning I would have to tell other customers to go away. So my question is for you guys. Is it better to have one or many customers? My belief is it is better to have quite a few different loyal customers. The reason is that if you have just one hay customer for all your production some day that one customer is not going to buy from you. For many various reasons. Then you have to start over finding buyers. I guess this depends on the amount of hay you put up a year. What say you? And this lady who called me I will not be selling too I guess as she needed immediate delivery and I only deliver hay in the fall/winter if I even have any to deliver. She told me 5 times she buys 300 tons a year.


Sounds like an A-hole. We have those types around my area, too. First they try to wow you with how much they buy, then they try to break your onions about the price, since they buy so much. 
Don't get me wrong I wouldn't ignore her, but usually lots of bravado up front is to hide something that will be dropped on you later. 
Keep all your little guys and tell her you'll sell her the rest. If that's not enough, refer her to one of your friends. He can supplement the rest and you both make money. Or you'll have to find more property to grow hay for her if she eventually turns out to be an OK customer.


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## Lazy J (Jul 18, 2008)

She's looking for a new supplier because she didn't pay for last year's hay!


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## cwright (Oct 19, 2011)

Sounds like she took lessons from an Wal mart buyer. Gets you to commit to selling all inventory to them and leave your loyal customers in the lurch.

Then when all your other customers are gone they start pulling the strings for higher production at lowers costs and threaten to go somewhere else if you dont meet the demands. First year ok, next year after the other customes are gone she will say she found a dandilion in a bale and will demand a lower price.

This is the way swaggering braggarts do business universally.

CW


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## AndyL (Mar 9, 2013)

cwright said:


> Sounds like she took lessons from an Wal mart buyer. Gets you to commit to selling all inventory to them and leave your loyal customers in the lurch.
> 
> Then when all your other customers are gone they start pulling the strings for higher production at lowers costs and threaten to go somewhere else if you dont meet the demands. First year ok, next year after the other customes are gone she will say she found a dandilion in a bale and will demand a lower price.
> 
> ...


Glad I'm not the only one that feels that way about wal mart, aka china mart


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## Chessiedog (Jul 24, 2009)

I have heard her story before . They tell you how much they are going to buy ,or how much they what you to roll. 99.9 percent of the time it's smoke blowing in the wind . If your dealing with the public it's going to happen not matter what your doing .


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## swmnhay (Jun 13, 2008)

Another game they play.If you have 2 grades of hay they will offer a straight price and want the better hay first then leave you hanging with the poorer hay.


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## Tim/South (Dec 12, 2011)

Teslan said:


> She told me 5 times she buys 300 tons a year.


It would have been nice to have a little fun with her.

Sorry Ma'am, I really to not have the time to take on any more small volume clients. Have you tried some of the small producers in your area? 300 tons would tie my truck fleet up for an entire day and we just can not disrupt our schedule for such a small amount.


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## swmnhay (Jun 13, 2008)

Had a guy last yr wanted it all but at $50 a ton less then my price.

1500 ton X $50 = $75,000

I don't think so!!


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## dbergh (Jun 3, 2010)

Build on what you have already got for a customer base. DO NOT GET RID OF YOUR LOYALS FOR HER. If you can sell her some and it works for both of you going forward then fine. You want a diversified customer base in my opinion. We sell to roughly 75 different customers on the small bales and between 4 and 6 buyers on the big stuff. We have a few large buyers of samll squares that anchor that end of things but we also need and want those other smaller customers as well. You need and want the flexibility and the security that come from having a large customer base IMHO!.


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## hog987 (Apr 5, 2011)

Don't believe anyone that says how much hay they need. I have people all the time saying I really need 300 or more bales do you have that many. I say yes. So they start getting some hay. After about 50 or so bales they say they don't need anymore. I think some lie about the amounts trying to get a lower price and I think some are always shopping around and if they find cheaper hay they will drop you like a rock.

Everyone in my area seams to want the bigger sales. But all the little sales add up over time.


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## R Ball (Feb 26, 2013)

I had people wanting hay this year that has always complained. Thanks to my accumulator and grapple I have had more small squares than ever. However I told them I just preferred they looked else where since I now had the ability to put hay in the dry without help.
Sold most all the hay out of the bottoms loaded on their trailors and what went to the shed did not last a week. 
My revenue has went up by a leap. By having the ability to put hay in the dry it also keeps me from having to sell it directly from the field.


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## JD3430 (Jan 1, 2012)

R Ball said:


> I had people wanting hay this year that has always complained. Thanks to my accumulator and grapple I have had more small squares than ever. However I told them I just preferred they looked else where since I now had the ability to put hay in the dry without help.
> Sold most all the hay out of the bottoms loaded on their trailors and what went to the shed did not last a week.
> My revenue has went up by a leap. By having the ability to put hay in the dry it also keeps me from having to sell it directly from the field.


Soon as I get a barn rented or built, I'd like to go to an as automated as possible small square production system like yours. 
Just to be able to tow hay wagons into one end of a barn parked end to end then stack them "at your leisure" must be an amazingly enjoyable experience. Heck, I'd probably just hire out the hand stacking, but I need a better barn before I could even think about going back to little guys.


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## R Ball (Feb 26, 2013)

Heck we stacked them with the grapple in a shed. The only hired help I had was for putting hay in our horse barn. Along with hay elevators I had 3 young men . Two at $8 hr one at $10, my older lead guy. Less than 3 hours for 500 in loft. I am happy happy happy. Just like Duck Commander.


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## hayward (Jan 26, 2012)

Idk, if she got money id give her some anyway i geuss? Definitly need more than one buyer, i been selling to one customer last two yrs, this yr he's looking around, now I got start trying to find a place for my hay to go . Geting hot an dry now, mayb people wanta start geting their hay just incase we get same wheather we been getting last two yrs? True what I'm reading here, an I'm glad for info. I need a bigger customer base forsure. Somwhere around 425 4x5s in barn, thousands invested. An still got more ac to go to finish first cutting, 2nd getting ready fast.


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## LeadFarmer (May 10, 2011)

I believe it definitely depends on the size of your operation. Her being a NEW customer to you also makes a big difference.

I have a core group of several different dairymen/exporters that I tend to work with year round. For dairy season I have a verbal commitment to a family that we have known and done business with for decades. My Dad sold his Dad hay, and now I sell hay to the son. But I am also not dependent on them to buy the product. While it highly likely that they will take the hay, I still market it to other people as well, so that if they decide it doesn't fit their program I'm not left with a couple hundred tons of hay and no where to take it. Marketing it to other buyers also lets me know if their price is in the range it needs to be. Perfect example: They did not need any hay yet when I had made my first dairy cutting this past March, so I sold it to another dairyman.

Historically, during the summer months we have taken all of our dry cow hay to a local feedyard, and we will be doing the same thing this year, except they will green chopping everything.

My personal preference is to have a small group of several buyers who you know and trust, but for my operation it needs to be buyers who are big enough to buy the entire cutting. I sell by the ton, and I sell the entire cutting. We are not a huge operation, but we do not have the time and ability to market our hay to customers only willing to buy a few tons at a time.


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## JD3430 (Jan 1, 2012)

I say keep all your options open. Never assume anything.


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## Dill (Nov 5, 2010)

DYNOBOB said:


> ...and she bought 300 tons from someone last year...but not this year.
> 
> .


Can't think of a better way to put that.


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