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® Paste 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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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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