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How much is fair mark up on crop inputs

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  • Lifer
    Senior Member
    • Oct 2002
    • 317

    so very close

    Comment

    • ado089
      Senior Member
      • Aug 2004
      • 1754

      Darren, If you set up your own retail and sold product to yourself at a 20% markup you would be paying 16.5% more than you are now on average. As a retail manager I've tried to tackle this issue from several different angles. I've gone as far as approaching bigger producers and offering everything at cost and charging them a brokerage fee as opposed to having a margin markup. This seemed like a good idea until the pencil hit the paper and it was realized how little markup there was on products. As long as grain companies are making $20-50/t on your grain they will give you the inputs to keep that grain coming in. It always amazes me how someone will pay a consultant up to $10/ac for his "services" yet they bitch about an extra 20 cents an acre on their chemical or $3/t for fertelizer that their local independent is offering with that same service. Most small retails have a genuine interest in your buisness and your success as a producer. And will offer you their "services" at greatly reduced cost to you than a consultant would offer knowing that your success is their success.

      Comment

      • Lifer
        Senior Member
        • Oct 2002
        • 317

        I like sardines better then red herring. I know you can do it.

        Comment

        • FarmRanger
          Senior Member
          • Mar 2005
          • 1620

          but red herring are such a tasty diversion

          Comment

          • Lifer
            Senior Member
            • Oct 2002
            • 317

            Thank you Mr Ranger sir for being the 100th message on makin' it work. I hope it makes you feel special.

            Comment

            • Professional
              Junior Member
              • Jan 2008
              • 1

              Darren, It's not about what you're doing, it's about how you are doing it. You painted every retail with the same brush. If you are a Professional Agrologist you have just breached the code of ethics and can be brought before the Institute if you keep up with your broad spectrum insinuations. As a P.Ag working in retail, it's about agronomics first for the customer and it's about protecting the public. If you had an ethical dilemma with a previous employer it's good that you left. However, keep it professional and between you and them. If you have a great idea that helps agriculture then get it out there in a professional manner.

              Comment

              • darren442
                Member
                • Feb 2006
                • 87

                No i'm not a P.AG i looked at the brochure and threw it in the garbage. Being a Certified Crop Advisor has more standing in my books.

                I take it prof you must have a retail.

                Comment

                • GrainBeetle
                  Senior Member
                  • Feb 2007
                  • 152

                  cow photo:

                  Comment

                  • sidvicious02
                    Junior Member
                    • Jun 2008
                    • 22

                    ado089, i think you would be very, very hard pressed to find a grain company making $20-50/mt on commodity.

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