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Philosophy & Personal Guidelines for Selling & Buying
Horses
Guidelines for Selling/Pricing
Our mission at SDF is to offer quality sport horses at fair prices. Before I
started selling horses professionally I asked others – buyers, sellers,
breeders, students, etc. – about their experiences. I was appalled by some of
the stories I heard ~ horses misrepresented, prices drastically inflated to
cover multiple commissions, and agents trying to get commissions from both the
buyers and the sellers! I even had a bad experience of my own, which consisted
of a (supposedly) reputable trainer who asked me to present a horse to her
client, after which she told me the client wasn’t going to buy but she would.
She then sold it herself to that same client (the next day) with a 50% mark up!
When confronted about this, her response was "Everybody does it." All this made
me realize why buyers do not trust sellers, and that I wanted to base my
business practices on higher standards. (After all, I only have one reputation!)
This is why I underline the fact that I am not a "broker" and only represent
horses I own, have trained, or am familiar with.
Since many of these horses are ones I produced, I am very attached to them,
and want to insure they receive the best home. These are my "babies!" After much
deliberation, I came up with the following guidelines.
1. Determine "Fair Market Value"
Pricing is a complex issue. I take into account the horse’s age, training,
trainability, and show experience. I especially look at each horse’s
competitiveness, either actual or potential. Whether they are or should be
competitive locally, nationally, or internationally is a major consideration.
Also, are there any temperament or medical issues? If it’s a client’s horse,
does it need to be sold quickly, or only sold if it meets a reserve price?
What is a reasonable price which will satisfy the client and keep it fair to
the buyer? How much has the horse cost up until now? These are some of the
issues that are taken into account to determine the sales price.
2. Honestly Represent the Horse!
I openly disclose their weaknesses and vices, as well as their strengths.
There is no perfect horse, and being up-front will save time and frustration
for all concerned.
3. Direct the Buyer to Appropriate Horse(s)
After receiving as much information from the buyer as possible, I offer
recommendations on which horse(s) best fit their criteria. Since I know them
well, I can offer insight and direct the buyer towards the horse(s) I have
which are worth their consideration. If I don’t have anything, I am perfectly
willing to refer them to someone who might. I will not sell a horse if I think
it is not appropriate for the rider!
4. Offer Selling Services at a Reasonable Commission
I only expect to be compensated for work I do. I charge a reasonable
fee/commission for selling a horse, commensurate
with the work I do. I place (and pay for) the ads, produce the video, field
requests, and present the horse to prospective buyers. If I need to refer a
buyer to another seller because I don’t have an appropriate horse, I do so
without expecting remuneration!
5. Foster Direct Communication Between Buyer & Seller
a) I encourage contact between my clients and a buyer. If a buyer has
questions, they are welcome to talk with the owner directly. This way the
buyer can be confident that I am not manipulating the price.
b) I will not sell through a third party who won’t allow direct
communication with the buyer! I dislike the practice of the buyer’s trainer
handling everything, to where they won’t even allow the buyer to talk to me.
I’ve seen this done as a way for them to scam money off their client! By not
being a party to this, it ensures the sale is on the "up-and-up," and I can
feel comfortable that the buyer and horse are a good match.
6. Do Not Inflate the Price to Cover the Possibility
of Other Commissions
If a trainer contacts me for their client, I feel that they are acting as
the buyer’s agent - not mine! Any commission they expect is between
them and their client. This way, we can set the price based on the horse, not
on how many commissions might have to be paid (which
ultimately means the seller pays).
7. Keep Price Current and Revise as Needed
A horse’s value is dynamic, and will change with their training, the
market, even the owner’s circumstances. For example, a young horse’s value
will dramatically increase in the months between backing and his first show. I
list a price range on my web-site, then offer the current price when requested
to avoid the confusion (and time consumption) of frequent price changes. This
also keeps the price down, since I don’t need to inflate it to cover future
training and expenses - I just revise as necessary.
8. Don’t Play the "Low Ball" Game
Since I have set a "fair market price" on each horse, there is not much
room for negotiation. I will consider offers, but usually the prices are
pretty firm. If a client really needs to sell, then I will price the horse
below market value to help move it quickly. For example, please do not assume
that a price of $20K really means we’ll take $12K. I myself really dislike
playing this game. If I felt the horse was worth only $12K, that’s where it
would be priced.
9. MOST IMPORTANT - Do What’s Best for the Horse!
If this means losing a sale because I don’t believe the buyer is a good
match, then so be it. I want buyers to be thrilled with their new "baby," not
end up frustrated or - even worse - hurt!
In conclusion, I feel that the way I do business is the most fair and ethical
for all parties involved. These guidelines have proved successful, as evidenced
by past sales. The purchasers have become friends, have referred
others to me, send me photo’s and videos, and E-mailed up-dates. It is a great
feeling to know that I helped them find their new partner. It makes it all
worthwhile to hear "Thank you for selling me "Mr. Wonderful" - he is the
best horse I have ever owned!" Check out the NEWS Page for samples of the
results!
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Guidelines for Buying a Horse
Buying or selling a horse is a time-consuming, emotional, and often
frustrating procedure. After having done both, I would like to offer some
observations and recommendations for Buyers.
1. Set a Budget
You need to budget not only for the price of the horse, but also for the
search, the vetting, etc. Costs you will incur may include:
a) Travel Time & Expenses. Decide beforehand how far you are willing to
travel. Realize that the closer to home you stay, the longer your search may
take. Factor in that you should see the horse more than once before deciding
to vet.
b) Pre-Purchase Exam. Talk with your own vet prior to beginning your
search to determine the minimum vetting you want (exam, flexions, X-rays,
etc.), then plan for more than one! It is also a good idea to have the vet
doing the pre-purchase exam talk with your vet to convey the results.
c) Trainer’s Fee. If possible, have your trainer visit the horse prior to
the pre-purchase exam. If unable to do this, then video-tape your session
and send it to your trainer for review.
d) Transporting Your New Horse Home. This can run into the thousands of
dollars, so don’t overlook it.
e) Price of the Horse. Research the market, and have an idea of the price
range a horse you want will usually be in. Depending upon the above, this
could end up being only a fraction of your budget!
2. Determine What You Are Looking For
This sounds logical, but many people start looking and then start revising
their expectations as they go! It is best to set some parameters, knowing you
might have to adjust your budget, rather than settling for a lesser-priced
horse that is inappropriate for your needs! Make a list of qualities, and
divide them up into what you have to have, what you would like to have, and
what can be compromised on. Some questions to ask yourself are:
a) Do you need a schoolmaster, competition horse, or both?
b) If you want to show, at what level do you want to be competitive?
Locally, nationally, or internationally? The value of a horse is usually
based on their competitiveness - either realized or potential.
c) What level of training must you have? Be realistic about your own
abilities. Most people overrate their riding skills, so ask your trainer for
an honest evaluation. This can circumvent future heartache and frustration!
For example, if you are still struggling to achieve an independent seat and
hands, a young horse is not appropriate (unless you are willing to pay your
trainer to bring it along for you until you are ready).
d) What temperament compliments yours? This is the MOST important quality
to match! You can be the most talented rider with the most talented horse,
but if you like a deadhead and the horse is a "pocket rocket," neither of
you will be happy! Ask the seller numerous questions to help ensure that you
are on the same "wavelength," and that you understand what the seller
considers to be "quiet" or "hot."
3. Be Reasonable and Courteous to the Seller
There are many sellers like me who are trying to train, sell, and take care
of our horses with little or no help. Offering a horse for sale is expensive and
time-consuming for everyone. I try to make the process as enjoyable and
time-efficient as possible, and have found that there are things a responsible
buyer can do to help. These items may seem logical and common courtesy, but you
would be amazed how often they are overlooked.
a) When you first contact the seller, give as much detail about yourself,
your goals, skills, discipline, and type of horse you are looking for.
b) If you are interested in a horse priced higher than you’ve budgeted,
ask if the price is negotiable before pursuing.
c) Request a video only if you are serious. Let the seller know when you
receive the video, and give feedback as to whether or not you are
interested. Return the video.
d) Don’t be a "tire kicker." Only request a trial ride if you are
seriously considering a purchase!
e) Call for an appointment - then show up! If you can’t make it, call to
reschedule or cancel.
I hope these suggestions help make your shopping easier, and improve
communication and understanding between you and the seller!
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