Tag: profit

What Price Should I Use?

For the past 3 weeks we have been holding our Executive Link meetings from New England to Texas. We have about 110 businesses that are currently members of Executive Link (EL). These businesses meet as boards of directors three times a year to give and receive strategic advice on their business and be held accountable […]

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The 3 Measures of Success in Business

In nearly 40 years of helping ranchers improve their land, their businesses and their lives, I’ve found that there are three things we need to measure to determine the success of a ranch business, or any business for that matter. They are: Profit, Effort, and Fun. Let’s take a quick look at each of these. […]

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The 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 […]

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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 […]

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Professionalizing Your Ranch

There are two types of athletes, professionals and amateurs. The professionals get paid to play. The amateurs have to pay to play. I look at ranches the same way. The professionals get paid to ranch. The amateurs subsidize their operations with unpaid family labor, off-farm income and inherited wealth. Some people balk at the idea […]

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The Laws Of Economics

My Cousin Vinny is one of my favorite movies. There’s a scene where Vinny, played by Joe Pesci, challenging the witness, asks, “Are we to believe that the laws of physics cease to exist on your stove?” That line, makes me think of some people who market grass finished beef and use grazing practices that […]

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Having a Ranch AND a Life

A friend included me in an email chain informing us of a farmer he knew who recently took his life. I don’t pretend to begin to know this man’s pain or anything about his situation. But the story struck me as beyond sad. Responses in the email chain spoke of the stress of farming, peer […]

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Sustainability: What’s In A Name?

Maybe it’s just semantics, but I think the words we choose are important. 40 years ago, when I was in college, “sustainable agriculture” was a revolutionary concept. Forward-thinking universities created Sustainable Agriculture Departments. Most farm and ranch kids enrolled in the Animal Science or Crop Science programs while the hippies enrolled in Sustainable Agriculture. But […]

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4 Reasons Why Increasing Weaning Weights May Not Increase Profit

I gotta stop reading this stuff. A recent article in a self-proclaimed “progressive” magazine claimed that July deworming was an often-overlooked opportunity to increase weaning weight and therefore profit.   According to the article, deworming can increase weaning weights by at least 30 pounds at a cost of $7.85 per cow/calf pair. With a market […]

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If Someone Is Doing It, It’s Possible

I often hear people joke, “Ranching for profit? That’s an oxymoron.” I get frustrated hearing it, but I don’t blame anyone for thinking it. There is a lot of evidence to support the “ranching isn’t profitable” paradigm. These days ranches are valued more for the scenery than for livestock production. In fact, looking at a […]

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