Competition is increasing in the stud stock marketing sector as new businesses emerge to fill what is seen as a growing niche for fee-for-service sales management options for studs.
The stud sales marketing services sector is dominated by corporate agencies which can draw on national branch networks, and which usually charge an overall commission in return for managing all aspects of a stud’s sale event.
However, a desire by some studs to handle various elements of the sale process themselves, such as marketing or contacting repeat and prospective clients prior to each sale, has triggered demand for greater customisation of sales management services.
In response to that trend Livestock auctioneer James Croft and agent Roger Lyne from Eastern Rural launched a sales management business in January under the banner of Ray White Livestock Sales Management.
Mr Croft said their business is focused on giving studs the ability to select one or more services such as auctioneering, sale day support, sales management, pre-sale activities, post-sale services or marketing, and to pay only for those services they wish to use.
The Ray White Livestock Sales Management business follows the introduction of a similar business by another experienced stud auctioneer Michael Glasser, 18 months ago.
Based in southern Australia, Glasser Total Sales Management is understood to now provide selling services to in excess of 30 studs.
Mr Croft said the cost of selling was creating demand for fee-for-service options.
“People are looking at their cost and saying, if we’re doing our own marketing, we don’t necessarily want to be charged for that
“They tick the boxes for the services they want us to provide and we provide that.
“It really puts the emphasis back on the vendor in terms of what they want to pay for.”
Mr Croft said fee-for-service clients were also being urged to redirect some of the money they were saving on commission to higher rebates to encourage outside agents to bring buyers to their sale.
“In the past that rebate for outside agents might have been two percent, we’re suggesting that some of what studs are saving by using fee-for-service sales management be redirected to agents who are actually hopping in their cars and bringing buyers to a sale.”