A Strong Gross Margin
If you’re ranching for profit, there is one way to define “a good cow”. She has a strong gross margin. In much of my writing and speaking it might seem that I’m not a fan of cows. But I enjoy cows like most people. My family runs cows each summer for a long-time custom grazing […]
Read MoreThe Unit
Improving gross margin per unit is the second of the Three Secrets For Increasing Profit™. It is also the most misunderstood. Gross margin is the contribution an enterprise makes toward covering overhead costs and producing profit. Gross margin per unit measures the economic efficiency of that enterprise. It is a powerful tool for comparing enterprises […]
4 Strategies to Improve Gross Margin per Unit
As a student in my very first Ranching For Profit School I was told to make sure I was shooting at the right target before taking aim. That’s common sense. But it’s not commonly practiced. Livestock producers are great marksmen, but they are often shooting at the wrong target. The target most producers aim at […]
Read MoreTo Move or Not To Move
How do you know when it is time to move animals from one pasture to another? Most people figure that if they are out of feed in one pasture, it is time to move. The herd is probably standing at the gate voicing their agreement that it is time to “Mooove.” There’s nothing they’d like […]
You Might Be Ranching For Profit If …
You might be ranching for profit if your spouse doesn’t have to work in town so you can have health insurance. If you are making a profit you ought to be able to pay yourself whatever it would cost to replace yourself and the business ought to be able to provide a benefits package, including […]
The Nine Calf Cow
I just read an article written by an ag economist on the value of bred heifers. He wrote that a crossbred heifer producing 9 consecutive calves in her lifetime is worth just over $3,200. Whoa!!! Nine calves! To be fair the author acknowledges that not all heifers will produce 9 consecutive calves. He figures 34% […]
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