Tools to Target the Right Customers

Every successful partnership requires each partner to give 100% effort. That includes the new exclusive partnership that Superior Livestock and BioZyme® have entered to market VitaFerm® Raised and Gain Smart calves through Superior.

The newly formed alliance targeted to stocker and feeding operations requires that either VitaFerm or Gain Smart be fed 45 days prior to marketing calves on Superior AND through delivery of those calves. Since nutrition is a key factor to herd health, gain and stress relief, this is win-win for all partners in the endeavor – the cattle feeder, BioZyme and Superior.

“This is a big win for our dealers when it comes to marketing the new Gain Smart product,” says Alan Lee, BioZyme Director of Sales. “But it is a more important win for the producers, who should see the value of feeding our product twice. First, they will see increased gain and faster growing calves, and again when they market their calves through Superior, they should see the premiums as being part of this new value-added program.”

Promoting the value of a nutrition program and the Amaferm® advantage, is already a great marketing tool, especially when customers see the financial benefits penciled out. Your customers need to sell those calves, and if they aren’t already Superior customers, the value-added partnership is another great arsenal to add to your marketing plan. Superior is the leader in marketing cattle, and chances are your bigger producers already use Superior.   

One way that Lee suggests dealers can discover larger producers in their sales area is to watch the Superior Livestock sales or read their catalog online, to see who already sells their cattle via Superior.  Another benefit of this simple research might be discovering a new customer who doesn’t feed BioZyme products but sells on Superior.

“Every dealer I’ve suggested this to who embraced this, has picked up at least one new, big customer in the last two weeks,” Lee says. And he adds, if an alliance or group of producers is selling cattle, the BioZyme dealer can potentially add several more customers.

Reaching out to your area Superior Livestock rep is another way to build a customer base. Superior has nearly 400 representatives across the United States who work on commission of selling actual load lots of cattle. They are another great source when promoting the BioZyme programs. Superior reps and their telephone numbers can be found online at www.superiorlivestock.com.

“Through a collaborative effort between the BioZyme dealers and Superior reps, we want this to be a long-term partnership,” says Jason Barber, manager of Superior’s purebred division. “We want the dealers and sales staff to reach out to reps and consignors to network while educating the consignors about the importance of a great mineral program.”

Lee says the dealers need to be proactive in approaching larger customers, and the new Gain Smart program provides dealers with the great information to approach larger feeders and stockers with. “Gain Smart provides greater performance, increasing gains from one-quarter to one-third of a pound per day. So, not only will they see added gains, they will receive premiums when selling through this value-added program.”

Using Cost of Gain to Make Profitable Decisions

History shows that production profitability is closely tied to several key factors, one being cost of gain. Producers can use their records on specific input costs and gain calculations to benchmark their enterprises. Simply, cost of gain can be used to make good business decisions.

Management records indicate that feed costs can account for 50-70% of the cost of producing beef, and should include both purchased and raised feed. The cost of raised feed is computed using the opportunity cost of feed grains, hay, pasture lands and other feedstuffs produced by the ranch and utilized in the cattle growing operation.

Feed per unit of gain (feed efficiency) has remained a very important factor in producing profits or losses. Feed conversion or efficacy is typically assumed to be an indirect indicator of profitability. The calculation for feed efficiency is: total feed consumed ÷ (weight sold – weight started). Therefore, as the name implies, it is a simple ratio of feed divided by amount of gain or a ratio of average daily intake divided by the average daily gain. Feed efficiency is usually a fairly straight forward number to generate.

The next step is to link economics to biology. By using the feed cost instead of feed consumed, making an expression of feed costs per unit of gain, one has converted a biological equation to an economic indicator.

Total cost of gain can be divided into the compartments that make up the gain. For example, researchers and nutritionists agree that Amaferm® will increase average daily gains of stocker cattle about 0.2 pounds per day. This weight gain is in addition to the 0.2 pounds per day that will be realized from the mineral, trace mineral and vitamin supplementation in the Gain Smart minerals. With a total supplementation cost of about 12¢ per head, per day, the cost of gain for Gain Smart mineral is only 30¢ per pound. Cattlemen will always be drawn to supplements that efficiently enhance gains, lower the overall cost of gain and improve profits.

For more information, contact Twig Marston, BioZyme Technical Sales Field Manager at (816) 596-8792.

October 2016 – Letters from Lisa

Just like a trapeze artist must take a risk when letting go of one swinging bar to catch the next, growing your business year after year involves risk. This month I want to focus on the trust involved in taking those risks – much like that trapeze artist trusts that the next bar will appear just as he lets go of the one he is already clinging to in mid-air. Some risks are easy to execute but take a decent sized bank account while others are hard to execute but don’t take much money at all. I am going to rattle off a list of these options, and then you can decide which one to choose so you don’t need the net.

1. Carve out a new corner of your market
Expanding into new markets provides the advantage of building a larger customer base.

2. Partner with other businesses who are growing in your market
By forming strategic partnerships with other growing businesses that offer complementary products and services, you can cultivate a mutually beneficial relationship that will help both of your businesses grow.

3. Diversify your product offerings
A diversification strategy opens up new possibilities. You can diversify your product offering or your target markets. Think about the things that go along with the items you sell: boots, apparel, shavings and nutrition services for example.

4. Leverage a strong position with your existing core customers
The ability to leverage your existing customer base should be core to better engagement with new prospects and how you funnel them through the sales process more quickly. Don’t take them for granted—your existing customer base can be the key to advancing both marketing and sales activities that lead to significant growth.

5. Acquire or merge with other businesses in your market
Perhaps the most aggressive growth strategy is to buy a company that makes products related to yours. We’ve seen that a lot lately with tech companies like Facebook, Google and Amazon that continue to acquire smaller businesses. If you cannot acquire another business perhaps you can arrange to merge with it.

Choosing the best option for your business is hard work that involves risk. It is no different than the trapeze artists high above the crowd gracefully letting go of their swinging bar flying through the air being caught and then letting go again.

Author Henri Nouwen once had the opportunity to travel with the Flying Rodleighs, a troupe of trapeze artists. Their conversation inevitably turned to flying and how they could possibly do what they did. Nouwen summarizes risk: ͞

A flyer must fly, and a catcher must catch, and the flyer must trust that his catcher will be there for him.

So outstretch your arms; let go, and trust the option you select to grow your business.

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Other Ways to Offset “It’s Too Expensive”

Learning is a complicated concept as everyone is unique in their own way, and learns in their own way as well. It is easy to give up when customers don’t react positively to the way you’ve positioned a product. You understand it… why shouldn’t they?

Unfortunately, we have to understand that all customers are different and different positioning tactics appeal to some more than others. Here are a few quick tips on conquering the “It’s too expensive” objection we often hear:

Divide into Daily Prices
For just 15 cents per head, per day, you can feed your cow the mineral program that will result in performance that pays.

Compare the Price to Something Tangible
Vita Charge® Gel gets livestock back on feed for less than the price of a Starbucks® coffee.

Increase the Perception of Value within the Product
Dyson has claimed 27% market share in the US vacuum cleaner space. They detail everything behind their products:

  • 5 years of prototyping
  • 5,127 prototypes
  • 1,000 Dyson engineers and scientists in Britain, Singapore and Malaysia
  • Engineers in disciplines like Fluid Dynamics, Aerodynamics, Turbo Machinery and Acoustics

Let’s do the same with BioZyme® mineral…

  • 60+ years of developing products
  • 160 published university research studies to prove how the products work
  • 350 PhD’s study the impact of Amaferm®
  • 12,000 cows each year participating in field trials for real-world proof

Introduce a Calculator

BioZyme has developed several calculators to help pencil out the value of the VitaFerm® mineral products. Take the time to go through these calculators with your customers. These calculators can be found at:
http://vitaferm.com/cost-calculators/.

Offers Stats that Prove Others Believe in the Value

In 2011, 216,714 beef cattle consumed VitaFerm every day -or- 5,418 producers believed in its value

In 2015, 538,379 beef cattle consumed VitaFerm every day, so today the brand is trusted by over 13,459 producers and counting!

What’s It Worth? Let’s Do the Math

Typical Customer Rebuttal:
“OK, fine. I can afford a mineral program, but that
VitaFerm® stuff is just too expensive”

While the study at Kansas State University estimates mineral costs at $36.50 per cow, per year, it is true that VitaFerm will be approximately $56.74 if using our top-of-the-line VitaFerm lines, Concept•Aid® and Heat. That’s $20 more per cow. Before you walk away, see the breakdown below so you can fully understand how you and/or your customers can’t afford to NOT feed VitaFerm mineral.

What are More Weaned Pounds Worth?
According to Reinaldo Cooke, PhD, Oregon State University, supplementing cows with organic trace minerals led to weaning weights of 519 lbs. vs 466 lbs. for the control (no supplementation but were not mineral deficient), giving the cows with organic trace mineral supplementation a 53 lb. or $74/hd advantage, or a 28 lb. or $39/hd advantage over the inorganics. VitaFerm uses Optimins® for organic trace minerals in all formulas.

What are Even More Weaned Pounds Worth?

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What’s One More Calf Worth?
A 2.5% increase in the calf crop (1 calf per 40 cows), at a 550 lb. weaning weight, would increase the average weight of the calves by 13.75 lbs., and at $1.40/lb., would increase the average revenue per cow by $19.00.

What is Keeping them Cool Worth?

  • 0.4 increase in average days open when beef cows experience heat stress (1.6 to 0 days across the USA)
  • 0.4 more days at 2.5 lbs. of gain per day a calf is on the ground, equates to $1 per cow, per year
  • Donor cows flush less when heat stressed. The typical flush is 8 eggs per cow. A trial on VitaFerm HEAT with 8 donor cows led to 105 eggs instead of the typical 64 in the year before.

What is Keeping them Grazing Worth?
The average producer feeding harvested hay has a per cow, per day cost between $1.25 to $2.00. More days on grass means less days of feeding harvested hay. This is difficult to calculate, so we will just keep this in mind while determining value.

What else can they say:
“OK, OK, OK.”

  • Optimins® Value: $39 more revenue for a heavier calf at weaning
  • Amaferm® Value:
    – $49 more revenue for a heavier calf at weaning
    – $19 more revenue for 1 more calf across the herd
    – $1 more revenue for less average open days
  • A 5 to 1 return before we even talk about forage savings!

The additional investment of $20 per cow translates to $108 more revenue per cow.

Click Here to Download the Understanding the Value brochure that includes all of this information in a format you can share with your customers.

What Does Mineral Supplementation Really Cost?

Typical Customer Objection:
“I understand the nutrition is great… I just don’t have the revenue to cover such a large cost in my operation.”

When cattle producers are trying to cut costs, mineral programs
seem to be the first to go… But should they be?
According to Kansas
State University, the average cost per cow, per year is as follows:

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According to this cost breakdown:

  • Year Round Mineral Cost = $36.50 per cow
  • Mineral accounts for only 3.9% of total cost
  • Harvested forage is 12.8% of total cost

According to a recent study by Reinaldo Cooke, PhD., Oregon State University, supplementing cows with inorganic trace minerals led to weaning weights of 25 lbs. more than the control (no supplementation but not mineral deficient). Using $1.40/lb., this equates to a $35 per head advantage.

What does this mean?

  • A mineral program will end up costing you $1.50 per year, per cow (=$36.50-$35)
  • That is 0.2% of the total cost per cow, per year

Now that you know what it really costs, do the math to find out what it’s really worth – click here.

Help Your Customers Understand How to Properly Compare Tags

Helping your customers properly analyze tags is important when comparing products. Here is some helpful information to help you ensure your customers are comparing apples to apples!

When analyzing feed tags, you must adjust for feeding rate in order to properly compare products. See example charts below.

Protein, Fat, Fiber and Macro Minerals
(calcium, phosphorus, magnesium and potassium) are listed as a % minimum or maximum.

  • A supplement that is 20% protein would contain 0.20 lb. of protein in each 1 lb. of feed.

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Trace Minerals
(copper, zinc, manganese and selenium) are expressed as “ppm” or parts per million.

  • One part per million is the same as one milligram per kilogram
  • 1 kilogram = 2.2 pounds
  • Must know feeding rate in pounds to truly compare ppm

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Vitamins A, D and E
are expressed in IU/lb.

  • An IU is an International Unit and is based on the effectiveness of a particular vitamin.
  • A supplement that lists 100 IU/lb. of Vitamin E, fed at 5 lbs. per day, provides 500 IU’s per day.
  • A supplement that lists 800 IU/lb. of Vitamin E, fed at 4 oz. per day, provides 200 IU’s per day (4 oz./16 oz. = .25 times 800 IU/lb.)

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Power Your Herd with BioZyme Protein Products

It is a widely known and accepted fact that supplementation is a large portion of cash costs for every cattle operation. Protein is a crucial nutrient in a beef cattle diet (or any species for that matter). Unfortunately, protein supplementation is frequently a high-cost item in the nutritional program, and therefore, often ignored.

Protein is essential within the diet of a ruminant to supply the ammonia needed for microbial growth and provide the amino acids needed for absorption from the small intestine. A deficiency in protein can limit microbial activity, microbial protein synthesis and rate of digestion. All of these can impact feed and energy intake. Furthermore, if an animal receives insufficient amounts of protein, production of meat, milk and wool can be dramatically reduced.

However, when a producer is supplying supplemental protein to their livestock, they don’t always think about how much of that protein the animal is actually utilizing. Regardless of the nutrient, there is a portion that can and can’t be utilized by the animal. The component that is available to be utilized by the animal is considered “digestible”. On average, only about 40% of supplemental protein can actually be digested by the animal and used for growth, reproduction, lactation, etc.

So how can we make digestibility of protein more efficient? By increasing production of microbial cell protein (MCP). Microbial cell protein is the purest form of protein (up to 80% digestible) and is derived from bacteria present in the digestive system. Amaferm®, found in EVERY BioZyme product, has been shown to result in an average increase in MCP of 34%, which correlates to more performance and ultimately more profit in your pocket.

In addition to the use of Amaferm, here are a few extra tips to proper, economical protein supplementation.

1. Identify your animal’s requirements.

In order to develop a cost effective supplementation program, you must first know the protein and energy requirements of your animals. Requirements for protein vary throughout the year and are dependent on the animal’s stage of production. For example, growing calves and cows in early lactation have some of the highest protein requirements. From weaning to puberty, cattle experience the largest increase in protein deposition throughout their lifetime. In turn, their requirement for dietary protein is particularly high as well. In regards to a cow that has just calved, her requirements are highest the first two months post calving due to the increase in protein demanded for lactation; while her lowest requirements are seen post-weaning. A cow’s protein requirement will begin to gradually increase again as fetal development increases.

2. Identify what is in your feed.

The second step in creating a successful supplementation program is knowing the protein content of your total diet. Protein can come from pasture, stored forages and supplemental feeds such as grain. BioZyme provides lab testing and ration balancing services free of charge to its customers. By understanding the nutrient profile of your available feedstuffs, you can better identify what supplements you can add to your feeding program to meet nutrient requirements and optimize animal performance without over or under feeding.

3. Identify which product best fits your management situation.

Generally, protein supplementation is needed in the late summer when forage quality is at its lowest and when grazing crop residues in late winter. For fall calving herds, forage protein is usually limited during early lactation. BioZyme offers a variety of high-quality protein supplements to meet a producer’s supplemental protein needs. The Concept•Aid® POWER Products all contain 20%, all-natural CP and provide enough vitamins and minerals to serve as a replacement for loose mineral supplements. VitaFerm® offers its POWER protein supplements in tub, meal and block form to fit differing management scenarios, allowing for maximum convenience along with improved animal performance. As a more economical alternative, the VitaFerm 30-13% Protein Tub offers a higher protein level in a smaller feeding rate, as well as a complete mineral package in every feeding.

Proper protein supplementation at various stages of production can prove extremely beneficial to overall animal productivity. The Amaferm advantage present in VitaFerm products increases the rate of digestion, allowing animals to meet their nutrient requirements faster and on less feed. Increased forage digestion provides for greater microbial growth and production of microbial protein to provide the animal with more protein for growth, lactation and reproduction.

September 2016 – Letters from Lisa

ADD VALUE TO YOUR MARKETING IN A DOWN CATTLE MARKET

During the past few years, beef producers have been experiencing record high prices. However, according to “Money” magazine, “Beef prices, which have been increasing for years, recently hitting rates high enough to inspire outbreaks of steak thefts at supermarkets and even the return of cattle rustling, are finally coming down to earth.”

Down to earth? The magazine goes on to say the decline in price is not because demand for meat has decreased, but because cattle are fatter? The author has obviously never gone through calving, dealt with VFD or tried to find feed when a drought or flood is at hand. He calls prices “down to earth”; the beef industry calls them challenging. In any case, producers will have to take steps to improve margins, and we will have to market our products to them in a way where they will see the added value of using BioZyme® products.

Value is a funny thing. There is no doubt that in the absence of value-added marketing, virtually any product’s price can be driven down to the most bottom line – price. The problem? When you are only selling price you’ll never be able to sell value. Adding value requires creativity, innovation and a willingness to out-work your competition. But the real sad truth is that if you continue to sell the way you always have, price will continue to rule. So, make a change before your competitor does! As the famous confederate general, Nathan Bedford Forrest, once said following a battle, “I won because I got there firstest with the mostest!” You need to do the same thing. The question then is, what do I do? Step one is to keep marketing top-of-mind. Most of us cut marketing in tough times – DO NOT DO THIS! In addition, make sure you incorporate these eight strategies into your marketing plan:

1. Set expectations high – just accepting that times are challenging,    therefore, sales will be down, just isn’t OK.

2. Never stop studying – the products, the market, the attitudes, etc.
    – in every down turn a new millionaire is born.

3. Find your light bulb – if you are turned on, the customer will
    be too.

4. Make sure you can differentiate yourself – be faster, cheaper or
    have a sharper focus on customer service.

5. Build your spokes – hire passionate, experienced team members
    and work with the best partners, like BioZyme, to ensure a great
    product and customer experience.

6. Be bold – just do it!

7. Plan ahead – five minutes of planning saves 30 minutes of doing.

8. Really understand the products you sell.

    – What are the features?

    – What benefits do they offer?

    – Who will buy them?

    – How can you easily match their traits with the customers’ needs?

A value-added attitude must result in an active mind with “Just DO IT” actions! After watching the Olympics this summer, being motivated should be easy.  Let’s go get ’em!

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Introducing BioZyme’s 3-Step Gain Smart Program: 3 steps to draw stockers/backgrounders to you

The job of stocker cattle is to turn cellulose into red meat, by putting on weight in the most cost effective way – gaining smart.

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The Gain Smart Stocker Program provides a 1-2-3 punch to get calves eating and staying healthy. It includes 2 products to jump start appetite and a line of vitamin and mineral supplements with the Amaferm® advantage that promotes health and economically produces pounds by maximizing the natural energy and protein available in forage.

Feeding the Gain Smart program with the Amaferm advantage:

  • Makes the most of the cheapest feed available to any stocker operation: forage
  • Accelerates gain by stimulating the calf’s rumen to function at top efficiency
  • Improves health by reducing the impact of stress, the largest sucker of immunity
  • Pays a 2 to 1 return through more gain, more health

superiorExciting news!!
This program will easily draw stockers to your doorstep due to its effectiveness on gain and health. However, to add icing on the cake, we have launched an exclusive partnership with Superior Livestock Auction. Beginning October 2016, calves selling through Superior Auction will be able to add a value-added emblem (see below) if they have been fed Gain Smart for the 45 days prior to the sale or have been on a VitaFerm mineral for the 45 days prior to sale. This program will be heavily marketed to bring new business to your door.

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Click Here for details on the Gain Smart Program. Call your ASM today to order Vita Charge Drench, Stress Tubs and the Gain Smart Mineral that is best for your customers.

BIOZYME/SUPERIOR REP PREFERRED PARTNER MINERAL PROGRAM
FYI :: We have developed a program for Superior Reps to be able to purchase VitaFerm and Gain Smart products at a discounted rate. Seeing is believing, and we hope to encourage any Superior Rep to try our products first-hand. If you have a relationship with a rep in your area, please make sure they are aware of this program! Contact your Area Sales Manager for assistance in filling out the required form for this program.