Archive for Business Matters

7 Tips for Surviving The Recession with Your Alpaca Business

webbarbiebaby

Over the weekend I received an email from an alpaca friend. She was so discouraged about her alpaca business. Full of doom and gloom, I could tell she was thinking of throwing in the towel.

Her state of mind inspired me to write about how to survive the economic downturn.

  1. Remember that you are not alone. People with money in the stock market, real estate, cattle, horses, and pretty much any business you can think of have lost a significant portion of their investment (at least on paper).
  2. If you don’t sell your alpacas at today’s current low prices, you don’t lose money. Economic advisors have called alpacas a “hold” investment for now.
  3. Don’t let panic selling cause you to drop your alpaca prices to a place where you’re not comfortable selling.
  4. Keep in mind that your pregnant alpacas are out in the field growing your investment now. They are working for you. Focus on their care.
  5. Your Investment almost doubles with each female cria. This knowledge should leave you feeling good about the money you have invested. (Stock holders do not have this assurance.)
  6. If you don’t already use the alpacas’ fleece to bring in money – this is the time to do it. Let the alpacas do their part to earn their keep.
  7. Remember why you got into the alpaca business to begin with. For the majority of people in the alpaca business, money was not the number one reason they invested in alpacas. The animals and the lifestyle they allow are more important to most of us.

Get back in touch with what motivated you to have alpacas in the first place.

What other ideas do you have for surviving the recession with alpacas?

Super Stud El Nino Died While Protecting Herdmates

elnino

Full Accoyo herdsire, El Nino, owned by Pacific Crest Accoyo America, passed away in late 2008. El Nino was well-known as an incredibly pre-potent herdsire, siring an incredible number of Champion offspring and putting incredible fleeces on his get. Once breedings to El Nino were closed, a breeding to the elite sire sold for $18,000 at auction. His follicle testing results indicated a density of 89.2 follicles per square millimeter with an S/P (secondary to primary fibers) ratio of 12.5. In 2007, El Nino sheared 10.6 lbs. with a 6 lb. blanket.

Accoyo America released the following in their latest auction catalog:

Our beloved El Nino perished in the Christmas blizzard of 2008. While the polar front raged through the night freezing everything in its path, El Nino and his son Ulysses assumed their sentinel positions outside their respective stalls, protecting their mates from each other. We found them nearly frozen, refusing to yield. Ulysses survived; his father did not. I realized how valuable and prepotent El Nino was when at the Futurity 2006 I looked across the White Male Championship and noticed that 4 of the 8 first and second place finalists were El Nino sons, while the White Female Champion and Light Male Champion were also El Nino offspring. I am grateful that his dam, Accoyo Sunipani continues to produce at age 14 and that we have seven of his sons working as studs at Accoyo America. And yet…we’ll miss him.

ARI Annual Meeting – National Alpaca Conference

ARI Board of Directors

ARI Board of Directors

The Alpaca Registry held their Annual Membership Meeting this morning in Cleveland, OH at the 2nd Annual World Alpaca Conference. Here are a few of the highlights:

  • ARI urges members to clean up their herds on-line. For example, login and mark your deceased alpacas as deceased. Also, you can mark the appropriate ones as sold without certificate transferred. (when you sell non-breeders but don’t transfer the ARI to new owner)
  • ARI will be offering BVD testing from Geneseek. Testing can be done from the same blood card that is used for registration.
  • ARI welcomes new Board Members, Monica Kline and Laurel Shouvlin.
  • For 90 days this summer (June-August) ARI will have an amnesty period where all registrations will be the lowest price regardless of the age of the animal. This is a chance for everyone to catch up and make sure all their alpacas are registered.
  • ARI urges its members to please register their geldings/non-breeders. It only costs $25 and it will significantly help our industry when it comes to accurate statistics and EPDs.

AOBA Auction 2009

 

Auction Coverage Sponsored by Fairhope Alpacas.

AOBA Annual Meeting – National Conference

AOBA Board of Directors

AOBA Board of Directors

The National Alpaca Owners and Breeders Association held their Annual Membership Meeting this morning in Cleveland, OH at the 2nd Annual World Alpaca Conference. Here are a few of the highlights:

  • The National Show and the Educational Events will be separated out as national venues beginning in 2010.
  • The National Alpaca Show is set for the third week in May in Fort Wayne, Indiana for 2010.
  • AOBA is working with Gaston College to have alpaca fiber tested.
  • Over 100 colleges participate in the AOBA Student Design Competition.
  • This year’s comprehensive election process helped AOBA achieve the highest voter turnout in history.
  • We have an up and coming Youth Division.
  • Funding is needed for a comprehensive alpaca industry study conducted by GIRCOM with AOBA in conjunction with ARI.
  • Ian Watt talked about working on a brand for alpaca fiber, a logo the way wool and cotton have one. This project is underway.

Coverage of this event was sponsored by Frostglen Alpacas.

Good Advice

Photo by Jim Snyder

Photo by Jim Snyder

“I always pass on good advice. It is the only thing to do with it. It is never of any use to oneself.”

~ Oscar Wilde

Why All the Sales Lists in the World Aren’t Enough to Sell

oldfencingPhoto by Angela at Farmers of the Future

Each day there are more and more places for alpaca breeders to list their sales animals. Alpaca Nation and Alpaca Street come to mind immediately. There are new, up and coming alpaca sites as well. Alpaca Market and Alpaca Classified (both Yahoo groups) are good place to post animals and other things for sale. Many AOBA regional affiliate sites also have Sales Lists on their web sites.

Occasionally a Buyer picks out an alpaca over the internet and buys him or her. But this is rare. How often does this happen to you? In this economy?

People may shop around on the internet, and we do need to have our animals on some sales lists. Don’t get me wrong. But what sells people is the relationship they will have with you. This is actually good news. Why? Because sales lists are targeted to a mass audience. The costs can add up. The scope too broad and too impersonal.

What really matters is the relationship – and it doesn’t cost you a dime. You can develop relationships with a few people and sell alpacas to them. Unless you are a large farm (and most alpaca breeders do not have large farms), you will probably not need to sell that many alpacas each year. You don’t need a mass audience. Only a few people who are a good fit for you and your farm.

Focusing on grass roots marketing and word of mouth will be more effective than a simple sales list. Having an Open House, passing out your business cards, and following up with your qualified leads can all lead to sales.

Many times I have heard from customers, “You are the only one who called me back.” Be the one who calls back your farm visitors, the people who sign your guest book. Get to know your prospects. They will need to know and trust you to hand over the kind of money alpacas command.

Sales Lists are necessary, but not sufficient. Pick up the phone and call a prospective alpaca breeder today. Build the relationship and the sales will follow.

Testing Begins to Confirm Alpaca Fiber Characteristics

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Emailed to the AOBA membership April 30, 2009:

Currently, many claims are made in the marketing of alpaca fiber and fiber products. Terms such as “warmer/stronger than wool”, “soft as cashmere”, “wicking abilities”, non-flammable” and “hypoallergenic” are often used to compare alpaca to other fibers and their products.  To address this AOBA is taking a proactive approach by gathering information and data and making it available to the alpaca industry.

There is no centrally documented data to support these claims. It may be that research and testing have been accomplished, but it is not readily accessible other than in marketing pieces.  In addition to the testing a search for previously conducted testing will occur and be posted as well.

Cotton and wool fiber and associated products have long had established values for certain attributes. Synthetic fiber developers often use that data to compare the functionality of emerging fibers to cotton and wool.

There are testing protocols available using ASTM standard methods to confirm and validate alpaca characteristics and compare to the widely accepted characteristics for cotton and wool, and even to extrapolate published information about synthetics, silk, and emerging “natural” fibers.

Because AOBA is the breed association for alpacas, it is incumbent on the association to be the leader in confirmation and validation of claims pertaining to alpaca fiber and fiber products. The Fiber Committee of AOBA is a logical group and has been assigned to coordinate and carry out the task.

Research and testing is needed to support the intrinsic characteristics of alpaca fiber as AOBA moves forward in the objectives of the Strategic Planning process. To formulate a strategic plan for fiber and finished goods production and promotion without sound data would be premature and inadvisable.

Research and Testing Studies

The first phase of the research and testing will be to validate intrinsic characteristics of alpaca fiber (things that are not variable among individual alpacas, ie not qualitative)

  • To perform preliminary testing on the desired core characteristics (moisture absorption and retention, thermal conductivity and flammability as starting points)
  • To carry out a literature search to find available data on the targeted tests as compared to alpaca and other fibers

The test areas are intended to address wicking (moisture absorption and retention), insulating and warmth (thermal conductivity) and flammability claims. Instinctively, these should be characteristics intrinsic to all alpaca fiber regardless of use.

Once accomplished, the test results from phase one would be published as preliminary data by AOBA on www.alpacainfo.com to be available to all interested parties.  A peer reviewed document will subsequently be published.

The second phase of the research will be to investigate other attributes of alpaca fiber and substantiate other claims, primarily for the apparel industry:

  • Hypoallergenic claims will be the most costly, but likely the most important. “Hypoallergenic” borders on a health claim, which involves more than just a comfort factor (itchiness) While there are no regulations to the use of hypoallergenic with regard to textiles, it will be important to base such a claim on scientific data as time goes on to avoid charges of misrepresentation.
  • Comparisons of alpaca to wool handle are often made, such as ”a micron of 26 in alpaca feels like a wool micron of 19”.  This area transcends laboratory testing, and would likely include consumer focus groups.
  • Other attributes such as fineness, tensile strength, luster, and comfort factor would depend on individual fiber and the application for use. These are quality parameters, not characteristics inherent to alpaca as a fiber.  As commercial production is developed in the US, these attributes will become important to the processing industry in determining the use (and subsequent price paid) for individual lots of alpaca fiber. For purposes of AOBA, a range would be established to use as comparative marketing tools for the textile industry.

The longer term third phase of research would be to explore utilization of alpaca fiber in other aspects, such as technical textiles and commercial textiles.

Research Facilities

For Phase One, AOBA will utilize the testing services available at Gaston College Textile Technology Center, Belmont, NC and North Carolina State University, Raleigh, NC. The facilities are familiar with a wide range of textile evaluation, and have recently been involved in a privately funded project of alpaca fiber and blends. The laboratory services there are in place, and adequate to do the testing as outlined for phase one. Gaston College was the host for the recent Alpaca Fiber Symposium. North Carolina State University has been involved with AOBA for several years in the investigation of alpaca fiber development from a Textile Engineering perspective, and is currently participating in the Student Design Competition through the Textile and Fashion Design programs.

For Phase Two, the research will be expanded to other Textile Departments at Colleges and Universities. Through the Student Design Competition, the AOBA Fiber Committee has adequate contacts to investigate and assess capabilities. Phase Two will encompass not only Textile Engineering, but Apparel, Consumer Science and Retail Management Departments.

Check the AOBA website for information regarding alpaca fiber and fabric testing, it will be posted as it becomes available.

Cattlegrower – Social Media for Ranchers

Photo by Jim Snyder

Photo by Jim Snyder of Buggy Ridge Farms

Like MySpace and FaceBook but Only for Ranchers (Alpaca Ranchers included)

It’s common opinion that most ranchers are old school, set in their ways, and don’t like change.

Perhaps this thinking is why the live stock Industry has traditionally been behind the curve in adapting to and using technology. Perhaps this is why most ranchers can only rely on their own close circle of contacts to promote and market their products to. Perhaps this is why many live stock producers fail to realize their full potential, or worse yet, fail altogether.

High in the plains of Wyoming, Chad Golladay and his family of six raise Lowline Angus and hay on their modest 300 acre ranch which they began building just three short years ago after being hooked in to the business through a 4-H project for his nine year old daughter.

Says Chad, “Despite the numerous fairs, stock shows, etc. that we’ve participated in, it was always a challenge to make new contacts in the Industry, or keep in touch with those we were able to meet. It seemed that if you weren’t part of the ‘good old boy’ network that most doors and opportunities were very difficult to open.”

“I think we’ve all met many fine people we’d like to discover more about and learn from. But if you’re like me, too many result in lost contacts and lost business. With the advent of social networking sites like MySpace and FaceBook, I thought… ‘Why not a social network just for ranchers and livestock producers?’” says Chad.

CattleGrower.com was born. A network community for livestock producers of all types and ages to connect, collaborate, and promote their operations.

Within only a few months of its creation, CattleGrower.com now boasts over 2,500 bovine, equine, sheep, goat, alpaca, and other livestock producers and enthusiasts who visit and contribute to the site regularly.

CattleGrower.com boasts a robust and powerful platform that allows its Members to:

- Create and develop new contacts
- Share and learn from each other
- Expand their marketing reach

While anyone is allowed to visit CattleGrower.com as a guest, Members are able to:

- Post Classifieds
- Share video and pictures
- Create and join events
- Create and participate in polls
- Have their own web page profile for marketing

Best of all perhaps is there is NO COST to become a Member.

Says Chad, “I believe we all want to do better by ourselves, our operations, and our families. CattleGrower.com provides that possibility – Simple to understand and easy to use, yet powerful enough to be limited only by your imagination – best of all, it costs you nothing.”

To learn more about CattleGrower.com please visit www.CattleGrower.com

And when you get there, please friend, Alpaca Farmgirl! This is one of my favorite social media sites. What other social media sites do you use in your Farm Business?

Alpaca Nation Means Business

an-_girl-125x125Alpaca Nation recently sent it’s customers an email. In it, they let customers know that they appreciate their participation in their customer satisfaction surveys and that they will be making some changes based on the feedback they received.

They report that they will be upgrading with larger photos, lineage reporting, and show results in the coming months. Alpaca Nation states:

The survey results included a lot of comments about the current economic challenges and our prices.  We are proud of the fact that we have never raised our membership fees in the 10 years since Alpaca Nation started.  However, many members indicated that additional pricing options are desired and that many of the additional services offered by AN, such as ANSync and banner advertising are cost prohibitive.  As a result of this feedback, we are announcing pricing changes.

The email goes on to report that price changes will include AN Sync. This is the service where the updates to customers’ Sales Lists and Herdsire Lists on their own websites are  in sync with their Alpaca Nation listings. (To demonstrate this service, here’s an example: Fairhope Alpacas Sales List and Fairhope Alpacas Alpaca Nation sales list are in sync. When the Alpaca Nation account is updated, the farm website updates as well.) This makes life easier and saves lots of time for breeders. New pricing will be $50/per year for all modules, decreased from pricing that started at $200/year with a $100 set up fee for each module and each module was an extra $100-150.

Alpaca Nation is also lowering their banner ad prices by an average of around $100/ad. Ad price includes design and artwork, which has always given them extra value. They’ve also added new payment terms and new herd count tiers. For more information visit the following:

More about ANSync:  www.alpacanation.com/ansync.asp
More about Banner Advertising:  www.alpacanation.com/ads.asp
More about Membership Prices:  www.alpacanation.com/FAQ/FAQ_cost.aspx

What Can Small Businesses Learn from Alpaca Nation?

  1. Know what your customer needs. How do you do that? Ask. On a small scale, you can call them and ask them. “How are we doing with our customer service?” “How can we serve you better?” “What additional services/products would you like us to provide?”If it’s not feasible to call your target audience, email them a questionnaire or have them fill out a form on-line when they sign up for something or make a purchase. The main point here is to DO something with the information that you gather. Hear what your customers want AND find a way to give it to them. This is a time to build loyalty, not be greedy.
  2. Hear what your customers want and respond to it. Find a way to give it to them. Even if you make less money from each customer, building/maintaining your current client base will ensure your long-term success.
  3. Make your price points more accessible to consumers in the current economic climate. By lowering their ad prices, AlpacaNation will likely increase the number of advertisers which should make up for the revenue lost by lowering ad prices. If your product’s pricing is not accessible, your sales will suffer.
    • *If you are selling alpacas, I am not suggesting you sell them “cheap”. Instead, consider offering a select number of animals at a lower price or put together a discounted package price. In this economic climate, I generally recommend that alpaca breeders hold their alpaca investments and grow their herds. That said, do continue to create cash flow and build your customer base by making prices more accessible to a larger target audience with a small percentage of alpacas from your herd if your herd is large enough to do so.

  4. Research your competition. Find out what services the competition is offering…and beat it. Alpaca Nation is the 2,000 lb. gorilla when it comes to advertising alpacas on-line. They were the first on the scene and they own the market share. It is hard to imagine anyone else catching them when it comes to internet traffic. Within the past few years, other on-line alpaca sales sites have come onto the scene. They have done several things to try to compete with Alpaca Nation, including offering FREE sales sync programs, and fees and ad rates that are lower than Alpaca Nation’s. Rather than resting on their laurels and letting their disgruntled customers gradually drift over to the competition, they are meeting the challenge head-on. The recent move to make these same services on Alpaca Nation more accessible with new lower pricing, should allow Alpaca Nation to maintain most of their current customers.

Thanks to King Kong traffic statistics, Alpaca Nation will maintain their spot atop the Empire State Building of alpaca internet sales lists for the foreseeable future.

What other business lessons can we learn from those at the top of their respective fields? Leave a comment and tell us.



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