We are fortunate to have several close friends in the kiko industry and a topic that seems to come up frequently is the advantages and disadvantages to buyers and/or sellers to participate in registered auctions. Everyone has to make decisions based on their situation and their circumstances and what might be a detractor to one farm, might be an enticement to another.
Many registered kiko sales for 2020 have been cancelled or rescheduled due to concerns over COVID-19. And many breeders who had selected their finest registered goats to carry to these events were faced with the question of what to do with the animals that were heading to these sales to represent not only their farm, but the kiko breed. They are likely selling those goats off the farm now, or holding them for sales in the future when gatherings of more than ten people are once again the norm.
Not only long time breeders but new breeders as well often ask the question "are registered sales a good thing?" or they have heard positives or negatives about the sales and would like some input. For the record, we have bought goats at registered sales and sold goats at registered sales. I have purchased goats directly from the breeder and sold goats directly to breeders. The first goats we purchased were bought direct from the breeder, the last goats also.
Many registered kiko sales for 2020 have been cancelled or rescheduled due to concerns over COVID-19. And many breeders who had selected their finest registered goats to carry to these events were faced with the question of what to do with the animals that were heading to these sales to represent not only their farm, but the kiko breed. They are likely selling those goats off the farm now, or holding them for sales in the future when gatherings of more than ten people are once again the norm.
Not only long time breeders but new breeders as well often ask the question "are registered sales a good thing?" or they have heard positives or negatives about the sales and would like some input. For the record, we have bought goats at registered sales and sold goats at registered sales. I have purchased goats directly from the breeder and sold goats directly to breeders. The first goats we purchased were bought direct from the breeder, the last goats also.
| My purpose here is not to encourage or discourage you from attending and participating in registered sales, but is to offer information on the topic and consider your options. We can not reach our goals when we don't have a plan, and how and where you choose to buy and sell your goats is a part of every breeder's decision making. If you buy registered breeding stock, chances are you are planning to sell registered stock in the future. When deciding how this topic should be covered, I sat down with a brainstorm list of concerns and benefits. Deciding my time is limited and yours is too, I have tried to keep this brief! Brief outlines from the perspective of the buyer and of the seller (consignor) with examples given from our past experiences as well as experiences related to us from those who sponsor and coordinate these events and those who have participated are quickly (I hope!) covered. If you have thoughts on this topic, please leave a comment!! These posts are all about sharing ideas and learning. |  Over the past nine years, we have attended SEVERAL registered kiko sales. I always KEEP these catalogs. They are great reference guides. |
CONSIDERATIONS FOR CONSIGNORS
ADVANTAGES
Advertising for your farm
RDH Isaiah's Patches - high selling doe at registered kiko auctions in 2016. Currently owned by Don & Christy Mulhall at Honey Stables Ranch in Kentucky When you are relatively new to breeding kiko goats, or make changes to your breeding program (new herdsire or herd moms, new farm management practices, etc.) a registered sale gives you a great opportunity to show your stock to a greater number of people than you will probably encounter at your farm in a year's time. Making sure your are bringing the goats that you had rather keep is key to capitalizing from this advantage!
Your phone will not ring, nor will your inbox be filled with inquiries if no one knows what you have to offer. Advertising in some form is a must when selling registered stock.
Your phone will not ring, nor will your inbox be filled with inquiries if no one knows what you have to offer. Advertising in some form is a must when selling registered stock.
Networking
| There is strength in numbers. And while we are all competing on sale day to ring the high selling bell, we are all in the business of promoting this great breed. Meeting other breeders and discussing goats or even the best place to get good barbeque helps build friendships. You can quickly learn who's farm management style is close to yours and who you can turn to for advice in the future. Not only do we all have our enjoyment of kikos in common, some breeders have other skills/businesses that can prove helpful also - computer techs, attorneys, veterinarians, feed store managers. We really have been blessed with good friends since beginning our kiko journey and we have met some of them during these registered events. |  L-R Kenneth & Connie Jessee from Jessee Farm; Charles & Sherri Reece Dean Hill Kikos; April & James Wilson from Circle W Ranch |
Opportunity for Higher Sales Price
When pricing our goats for sale off farm, we try to be fair to both buyer and seller. We take into account our averages from the past, current demand, the goat's attributes, and come up with a price we can stand to part with that goat. When you are dealing with a really special goat in the auction ring and there is high interest in that goat, that goat can exceed "what you can stand" and enter a realm of "what you never imagined". As with any auction, people want what they want and sometimes as the bidding goes on, they want it very much!
DISADVANTAGES
Too easy to miss an opportunity to connect with your buyer
 NKR Spotlight Sale May 2019 | We all want our goats to perform up to the buyer's expectations. And most of us would like an opportunity to thank people for their purchase and for putting confidence in our animals. We also expect our goats to do well on other people's farms. Whether the new owner is tickled pink with their purchase of your consignment or is having some issues being a first timer raising goats, we all want an opportunity to build stronger relationships with those who have placed their trust in our product. When the auctioneer calls "SOLD", you may not know who is behind that bidder number and if you do find out in the future, personal communication is sometimes lost. |
Sales Price is Uncertain
When you consign a goat to a registered auction, you have an opportunity to place a reserve on your goat. A reserve is a minimum price you are willing to take for your consignment. If your consignment does not get a bid up to that reserve, you will be taking the animal home. If you choose to take whatever price the goat brings, you may sell that goat for less than you hoped. There is no guarantee on the number of buyers and bidders at the auction and no guarantees that you will reach your goat's fair market value.
High Costs of selling
It is a rare thing for a registered auction to be held within driving distance of your farm. There are costs to consign your goats to a registered auction because there are costs involved in putting on the sale. I have seen consignment fees for as little as $80 per goat, and fees up to $150 per goat plus a 5% commission. Let's do a quick and easy calculation on expenses. I will do an average consignment fee for the equation and a maximum of three goats to consign. I will also figure two nights of hotel accommodations, 200 miles of travel one way at 15 miles to the gallon (pulling a trailer/truck/etc) for $2.00/gallon , meals while on the road and a reliable farm sitter.
| $300 consignment fee $55 fuel $200 hotel $90 meals for two $200 farm sitter ------------------- $845 total |  |
You have now invested $845 to sell those three goats. I am not saying it isn't worth it, but these are referred to as "sunk costs" - costs that cannot be recovered. You may reduce your actual costs from the example given or you may buy NEW goats or splurge on meals/activities while you are out of town, but the point remains, you are spending money in the hopes of gaining a return.
BUYER'S PERSPECTIVE
ADVANTAGES
Variety
| At registered sales events, you can view and select animals from several different farms and from geographic locations you would not otherwise consider for a day trip. You will find some nice goats from farms you do not know. You have an opportunity to bring back some genetic diversity to your farm. If you are just starting out, this can be a quick way to put together a herd. Few farms have enough breeding stock quality animals in a given season to supply all the needs of a new breeder. |  Appalachian Kiko Invitational 2015. With an average head count of 80 or more goats, you are free to take home as many as your wallet and your trailer can hold! |
Networking
I realize this was listed above as a benefit to the consignors, but what an opportunity to meet new people and talk to several different breeders. Most all of the kiko breeders we have had the opportunity to meet, are kind and helpful folks. Some of our best friendships are the ones that began over a goat pen!! If you are just looking and aren't ready to bring goats home yet, you also have the opportunity to see what animals are offered by what farms for ideas for your future shopping lists.
Educational Seminars
 IKGA Kikofest 2006 | Most registered sales provide educational seminars for those interested in learning more about raising goats. Those seminars have ranged from rotational grazing to the life cycle of a barber pole worm. From livestock guard dogs to record keeping. From breed stock selection to artifical insemination and embryo flush and transfers. From the history of kiko goats to filling out registration paperwork. They have been a great help to many new breeders and are usually free to any who are interested. |
DISADVANTAGES
The Waiting
When I am ready to buy something - ANYTHING - I dislike having to wait. Car fever, but you can't go to the dealership? Hungry for your grandma's chicken soup recipe, but can't go to the store? Got your fencing ready and the dogs all set, but the sale is five weeks away? Yeah, frustration. No one likes to wait.
What Are You Buying?
If you are not familiar with the breeder, or the farm where a certain goat originated, you are in the dark on the animal. If you can find out who the breeder is and talk to them about their operation, you can satisfy some of your curiosity, but it is nothing like a farm visit where you can not only hear for yourself, but see for yourself. You may also get a chance with an on-farm visit to see what the breeder doesn't want to sell! I have more than once been talked out of the goat I did not want to sell by someone who REALLY wanted that goat in their herd!! Additionally, the fine print in all the sales catalogs have similar lines "all animals sold as is...." or "the ABC Sale makes no guarantees on the animals sold...". If you have no relationship established with the consignor and you have an issue with the goat you brought home, you have to hope once you contact the seller they will help you out. And straightening out a problem with someone who is 1,000 miles away could present a challenge.
Are You Bidding Against A Real Bidder?
| Reserve prices are a benefit to the consignor. As discussed above, it is an opportunity for the seller to establish the lowest price they are willing to take for the animal. During an auction, you may find yourself bidding against the seller's price alone - sometimes called a "ghost bidder". Some people are fine with this practice as it lets them buy the animal for what they are willing to spend and what the seller is willing to take. Others are not and think this kind of mutually agreed pricing is best left for private treaty transactions off the farm and auctions should all be absolute in nature. |  |
Other bidding practices that involve online bidders and phone bidders make some bidders in attendance very uncomfortable. If the opposing bidder is anonymous, do you have faith in the bidding process? If you have questions about the rules on bidding/buying ask a representative of the sale about their policies before the sale begins!
However you chose to add goats to your herd
Remember.......
 GHK Mufasa daughter with March 2020 Indian Outlaw kids |  Yearling does from Indian Outlaw x Sunny (Rusty x ECR M4) |
What really matters when beginning your operation is having a plan for your farm! If you want goats as a part of your hobby farm, then breeding your goats and selling offspring may not be a primary concern. If you have a commercial goal in mind your business strategies will not look exactly like those of a seed stock producer. Put your ideas together, get your fencing up, and put your dreams in motion. There is no better time to build your herd.
RSS Feed
