magazine for northwest
sporthorse  enthusiasts

MARKETING YOUNG HORSES
Sharing Risks & Profits
Isauro A. Flores, B. Sc.

After working for over 20 years as a business development consultant and earning a B.Sc. in Biochemistry, I switched professions to follow my dream of working with horses. Now, I’m using my consulting background to take a new approach to the horse industry. I hope to use this perspective to help horse breeders bring their young horses to market—in a more effective manner, with less risk and frustration.

I became familiar with the horse breeding industry from years of managing, breeding, competing and promoting the imported show jumping stallions managed by osjs.com (Olympic Show Jumping Stallions Corporation). Working with breeders, I’ve seen how they spend significant resources (cash, time, dedication) in developing and bringing young horses to market. After being extensively exposed to the breeding industry for the last four years and the rider/trainer side of the equation for over 30 years, I’d like to share some observations and propose a new way of doing business.

Read More:

What people are
saying about Isauro
& Olympic Show Jumping
Stallions Corporation.

Bringing young horses to market can be a risky business for many breeders. Many breeders have had the experience of selling a horse for a relatively low price to an individual who puts some training on it and re-sells it for a significantly higher price. It’s also not uncommon for a breeder to send their horse out for training, pay healthy fees and have the horse not sell due to market conditions or other reasons. The breeder runs out of money, the horse comes home, and his training goes out the window. The breeder is upset about the money that went out with no results; the trainer is unhappy that the horse was pulled out of training just when he was nearly sale-ready.

The fact is that there are individuals in North America breeding horses of top quality. What is lacking is an efficient process to get them to market. At OSJS we are adapting a business model that has been successfully used in other industries, such as engineering and construction. We establish goals, a time frame, and a budget to completion. We share the risk between breeder and trainer and ask for accountability on both sides. The success of both parties is linked to the success of the venture. We believe that situations that are “win-win” produce results that are more sustainable in the long-run, not only for the individuals involved, but for the industry as a whole.

At OSJS we are continuously fine-tuning our processes to maximize returns for all involved. Here’s how it works.

1) For each horse, we discuss the estimated amount of time required to bring the horse to a point where he is ready to be sold. We agree on a time frame, for example six months.
2) If, after the original agreed-to time frame (in our example six months), the horse is not sold and the breeder decides to take the horse, I am out of luck. (That is why I make sure I give an accurate estimate from the beginning.)
3) Breeder pays for board, farrier, vet work, show fees—all pre-approved by breeder
4) OSJS works with the horse, developing solid basics in dressage and jumping, with a nominal training fee of $100 per month.
5) We determine together what the market value of the horse is “as is”, prior to training.
6) As the horse improves in training, the market value of the horse is maximized.
7) We then price the horse at a fair and competitive market price, attractive to both the seller and potential purchasers.
8) Once the horse is sold, funds are allocated as follows: a) Commission to agents (if applicable); b) Pay the amount to the breeder determined in point 5 above; c) Reimburse breeder half of cash outlaid during training period as in point 3 above; d) Any balance is split 50-50.

This strategy shares the risk and the profit potential of all parties. Both parties benefit if the horse does well in a short period of time.

Horses have always been my passion and I have been competing and riding since 1974, but I had not seen a business model that would allow me to keep my passion and do business at the same time. I love horses and they are not commodities. They are my friends and I help them learn how to lead better lives. When they are ready and find new owners, both the breeders and I make money.

I like win-win situations. I believe that when you enter into a business arrangement that is productive for all parties involved, more business is generated. You need to find the right kind of people that also believe in win-win and in loving the horses.

For more information visit www.osjs.com, call 604-841-7407 or e-mail: info@osjs.com. Olympic Show Jumping Stallions Corporation is located in Langley, B.C.


Flying Changes : magazine for northwest sporthorse enthusiasts
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