Marketing is just as important in the horse industry as it is in the fast food industry; it just has a different twist. When you think about it, are McDonald's customers really ‘lovin’ it’ more than, let’s say, Burger King's customers? With good marketing, McDonald's is not only staying in business, it’s making millions of dollars every year!

Over the next three months, we will be talking with various people in the industry about marketing horses. Topics will cover showcasing your stallion, holding a production sale and marketing your operation. This month, we begin with marketing the stallion. What is the key to successfully putting your stallion on the market as a producer of champions?

Stallions are a dime a dozen these days. Over 144,000 Quarter Horses are registered each year. About half of those horses begin as stallions. With the advances in modern reproductive science, mare owners are able to get more foals out of high-quality stallions, which lead to more owners wanting to leave those horses intact. If you have one that you think is better than the rest, there is a big job to do in letting others know how great he is. With all the competition, you have to allow him the opportunity to make his mark in the industry, and you have to follow up on it.

The Stallion Worthy of Marketing
When you have a stallion that you want to promote as a breeder, you should ensure that he gets proven prior to spending the time and money on advertising.

Carol Rose, of Carol Rose Quarter Horses in Gainesville, Texas, shared some of her knowledge with us about raising a successful stallion.

“It is very hard to market a stallion. There are too many stallions in the industry today,” Rose said. “But if you are going to do it, you need to do it right. You have to start off by putting your colt with a trainer that is well-known and will give him the best chance.”

Whatever his aptitude may be, mare owners look for a stallion that they know can do something, and do it well.

“You must get a record on your stallions,” Rose added.

There are many avenues you can take when getting a horse proven. You can go with either breed association shows or performance association competitions (or both) to attain the horse’s lifetime earnings (LTE). For example, the American Quarter Horse Association endorses approved shows where horses receive points, allowing qualification for the AQHA World Show, and various awards that can be won along the way. With a performance association such as the National Reining Horse Association or the National Cutting Horse Association, horses compete for money. A running total is kept for that specific horse throughout his lifetime. Points and money totals officially record the winnings and ability of a horse.

So you have a worthy stallion, let’s get to work.
Now that you have a product, you need to market it. Several things need to be considered when putting your marketing plan together. The link below is an example plan for your stallion. We will leave this up so you can link to it or put it in your favorites. The following months will have plans for your production sale and for your overall operation marketing.

Example Marketing Plan (PDF: Get Adobe Reader)

Marketing Objectives and Strategies
To make your objectives happen, define your goals. Pinpoint your target audience and determine how to best market to them. Mare owners within a certain industry are drawn to bloodlines of certain lineages.

“Advertise in the industry where your horse’s pedigree is the most popular,” Rose said.

There are many avenues available to you when it comes to getting the word out. The following are a few of the options available:

1. Magazine Advertising: Decide on a magazine that will get into the hands of your target market. Review circulation numbers of the magazines that you are considering. The higher the circulation, the more bang for your buck. Information on current rates and circulation can be found by visiting the publications Web site or calling their office.
   Quarter Horse Journal
2. Web Site: Have a good Web site. This is the technology age. If people are interested in your horse, nine times out of ten they will be looking for a site on the stallion. Be sure to optimize the site for search engines, and if you don’t know how, subcontract someone to do it for you.
   Carol Rose Quarter Horses
3. Show Displays: Walking through the barns at the major horse shows, you will see the set-ups for showcasing a farm or horse. Some of these no-expense-spared displays are quite extravagant and others are simply functional.
   Godfrey Group
4. Stallion Fliers: These are sheets of glossy heavy paper to hand out to potential customers that give a photo of the stallion on the front side and a pedigree, lineage description, and winnings on the back side.
5. Videos: Promotional videos (VHS or DVD) are best made by a professional videographer to showcase the stallion’s highlights and capabilities. Performance action shots and personal interviews with trainers and industry professionals are always good fill.
   Waltenberry, Inc
6. Arena Banners: Banner spots are available at numerous arenas around the country. Some sort of sponsorship is typically required when purchasing a banner spot.
7. Sponsorships - Events, Dinners, Banquets, etc.: The key to this outlet is choosing the right event to sponsor. Choose an event that would give the best return. The local 4-H banquet is a great cause, but the NCHA banquet would be more beneficial.

These are just a few of the options available to you. Marketing requires creativity. The most creative techniques are the most successful. While being creative, maintain your functionality. For example, while at a horse show in Texas in July, a ranch sponsored hand towels for the competitors. Ingenius! It was 100 degrees in the shade and the cuffs of my shirt were soaked from wiping my forehead. There was not a more effective marketing tool available at that point in time. Congrats to the inventor of that great idea!

Budget
Advertising is unavoidably very expensive when done correctly. To ideally market a stallion, it will cost upwards of $40,000 a year. You need to define what you are willing to put into this monetarily.

“When deciding on a budget, spend whatever you can afford,” Rose said, “Unfortunately, it gets expensive if you want to do it right.”

There really is not a set formula for calculating what you should spend on a stallion based on earnings or breeding fee income. The number you spend is up to you.

Hire Capable Professionals
When you have your plan together as to what you want to do, delegate the responsibility. Most likely you will need to hire someone to handle the advertising pieces. Few know enough about photography, videography, magazine layout, printing processes and Web sites to do it all ourselves. Find a group in the industry whose work you like, and work together to produce your materials.

“Communication is 100% of your success with your ad firm,” Rose said.

The importance of conveying your expectations is imperative. Trained professionals can usually get a feel for what you want, but you have to be very specific. Go to them with a plan in mind. It is a joy to watch it come to life!

Can/Should you advertise while you are proving your horse?
Sure you can, but communication with your trainer is very important. It is difficult when going from the breeding barn to the training barn and vice versa. Market your up-and-comer with the same plan as you will when he is proven, but with a smaller scope. For example: Get a banner at competitions nearest you and ad pages in your regional equine publication rather than banners at world and futurity level competitions and ad pages in the Quarter Horse Journal. This idea carries over to smaller budgets as well. When you have an unproven (or being proven) horse, or a small budget, don't cut things out of your marketing plan. Just scale down the scope of your marketing plan.

Track Your Progress
Marketing is a slow process, but remember that the more familiar people get with your horses, the more effective your marketing becomes. Put effort into finding out how customers found out about you. For example: If everyone is coming from your website, pour more money into that and cut down on show banners, or magazines. Go into the idea of marketing with a timeline and specific goals in mind. Be willing to put some time, money and effort into it to reap the rewards.

Carol Rose is the AQHA’s #1 All-Time Leading Breeder of Performance Horses. Carol has bred foals earning more than 28,000 AQHA points, including 43 AQHA World and Reserve World Championships, 13 AQHA National All-Around titles, and earners of more than $3.3 million. Foals bred by Carol Rose have earned more than 283 ROM awards, 176 Superior Awards, and more than 500 AQHA All-Arounds. Rose is an inductee to the Cowgirl Hall of Fame, NCHA’s Non-Pro Hall of Fame, and the Texas Cowboy Hall of Fame. Rose is an AQHA and NCHA judge, and she was honored as AQHA Horsewoman of the Year in 1998. For more information on Carol Rose or Carol Rose Quarter Horses, visit www.carolrose.com or call (940) 665-9304.

Concentration:
Working Quarter Horses
Boarding
Training
Lessons
Breeding
Buying/Selling

Bloodlines:
King
Poco Bueno

Achievements: Lanham Riley inducted into Cowboy Hall of Fame in 1993, Mitzi Riley inducted in 1995.

Location: Aledo, TX

RanchForeman Member Since: 2005

Set Realistic Goals
It is important to remember that in starting any new business, the individuals involved must determine their goals for items such as the size and scope of the business coupled with the liquidity or cash that is available. Everyone can usually determine what they are looking for as far as real estate, barn size, equipment needed, cash flow needs, equine needs, etc. The stumbling block usually occurs when you are trying to decide how to spend the money or how to have it work best for the new venture.

Save The Horses For Last
The standard for financing farm and ranch real estate, with or without a barn, is a 20% down-payment resulting in an 80% loan for somewhere between a minimum of 5 years and a maximum of 30 years. Equipment is probably the easiest of the needed items to obtain attractive financing. If buying new equipment, the dealership normally has in-house financing with very attractive rates and a 10% or less down-payment requirement.

The last two items mentioned above are cash flow and equine needs. I lumped those two items together because of their difficulty in getting financing. Banks typically look at equine ownership as being recreational rather than as an agricultural business. Therefore, it is very difficult to both secure a loan for purchasing equine and use equine as collateral to secure a loan for other needed items. The lenders opinion is supported in the event the equine loan does not repay as planned because there is no wholesale market, like an auction barn for cattle, to liquidate the collateral. The business plan for the new venture should either pay for the needed equine in cash or have other collateral to back a term loan to purchase them. As for the line of credit needed to finance month to month expenses, hopefully hard (paid for) collateral like equipment or real estate is available to pledge with at least a value of 25% more than the line of credit being requested. Otherwise the business can obtain a dollar for dollar loan against cash or savings to secure the line.

Be Fiscally Responsible
In summary, use the least amount of cash possible to obtain the real estate and equipment needed for the new business, because in order to obtain the needed horses and line of credit, a large amount of other hard collateral or cash will be needed.

If you can manage the down-payments described above, have a strong credit report, maintain an average looking financial statement post-closing of the various loans described, and can project a cash flow sufficient to cover all operating expenses and the new term loans; then you are well on your way to starting your business. A little luck and plenty of hard work should allow the operation continued success.

About the author: John O’Brien IV is a graduate from Texas A&M University in the field of Agricultural Business and long time South Texas resident of the O’Brien Ranch. John is the Vice President and Branch Manager of Texas Ag Finance. He is very involved with the community and sits on the Farm Bureau Board of Directors in San Patricio County. Also an independant businessman, John ranches in San Patricio Co. and Bee Co. raising commercial cattle and registered Quarter Horses. Email John: jobrien@texasagfinance.com Call John: (361) 387 - 3534

A cowboy feels a little differently about his buckle than he feels about any other piece of his outfit. Sure a good pair of boots is nice, and a good hat is something to take pride in, but a belt buckle is a window to who they are. This month’s Connoisseur’s Collection talks with Clint Orms Engravers & Silversmiths about having a custom belt buckle created just for you.

A belt buckle is not something you wear out. Older cowboys still wear the buckles they won in the 1950s, even though they are worn almost smooth. And when they do retire the piece, a lot of times it’s handed down to the next generation. When you have a piece made, it is destined to become a family heirloom, so let’s find out how to do it right.

The Design
The process begins with a call or a visit to Clint Orms’ shop in Ingram, Texas, in the Texas Hill Country. The most basic decision you will have is the buckle style – trophy buckle (below left) or three- or four-piece ranger set (below right), or possibly even a mixture of the two.

  

With your ideas and Orms’ creativity, a sketch is started. You may have an idea of what you want to have made. If not, between the two of you, an idea will develop into a beautiful work of art right in front of you. Once you have your basic design, then comes all the options.

Options: Material
Silver and gold are basically your options for materials, with different karats and colors of gold available. As with any fine silversmith, both silver and gold portions are solid, not plated. Either metal can be used on its own, or in combination with the other.

Options: Engraving
Both gold and silver can be engraved, and there are several styles of engraving from which to choose.

• Scroll Engraving
• Wriggle Engraving
• Decorative Engraving

• Polished No Engraving
• Satin Finish

Options: Overlay
Overlays are pieces of gold or silver carefully soldered on top of the buckle piece for a raised decorative finish. Overlay opions include

• Silver Overlay
• Gold Overlay

Options: Filigree
A delicate finishing touch is the filigree where the buckle remains one piece with the background cut out.

• Filigree

Options: Images
The unique part of having a custom piece made is that the sky is the limit as far as creativity goes. If you are into pheasant hunting, golf and Quarter Horses, you can have a buckle made that represents all of those things in one piece. With the option of having images on your buckles, you can truly capture what interests you.

• Images

Options: Stones
To add a little extra sparkle, stones can be included in a piece. Stones range from precious to semi-precious. You could choose to add rubies to a buckle or even diamonds.

• Ruby Setting
• Diamonds

Options: Edge
The edge of a piece has - you guessed it - many options as well.

• Plain Edge
• Engraved Edge
• Rope Edge
• Overlay Edge

Budget
Budget is something you will want to discuss when you meet with the silversmith. The maker will better know the direction to go when he knows what you have in mind monetarily. The group at Clint Orms starts their pieces at around $500 and depending what all you add, i.e. gold, overlay, stones, etc., the price is reflected. A silversmith has the capabilities to create a $50,000 piece, but you are the one who calls the shots on what gets put on the piece, and ultimately, how much it will cost.

After the meeting (or phone call) and decision on the design, expect to put down a 50% deposit on the piece. The remainder of the amount due will be expected at time of completion.

Turnaround
Depending on the complexity of the buckle, Orms takes between 90 and 120 days from the order date to have the piece in your hands. This is standard for the industry. Some take upwards to six months to complete pieces. Turnaround time should be discussed when ordering the buckle.

Silversmiths of exceptional quality are few and far between in this day and age. The individuals that create these museum quality pieces have a love for it like nothing else. As with any learned art, you don’t become great overnight. It requires years to gain the knowledge it takes to create masterpieces like those found in the Clint Orms Engravers & Silversmiths shop.

Clint Orms Engravers & Silversmiths is located in Ingram, Texas. Orms has been working in silver since age 16. His entrepreneurial spirit got him started making belts when he was in high school, but he got his call to start making buckles when he realized he wanted to make something that wouldn’t wear out. Orms worked as an engraver for 16 years prior to starting his own business in the Texas Hill Country. For more information, visit www.clintorms.com or call (830) 367-7949.

Full-service facilities that have a history are rare, but if you were in Aledo, Texas, you would likely find one at Riley Ranches. Today, services offered range from full-care boarding to training to lessons to breeding to fitting horses to sell. All the while, knowing that a real history for successful horses began decades ago.

In 1960, Lanham Riley, and wife Mitzi, founded Riley Ranches in a town just west of Fort Worth named Aledo. This successful RCA calf roper continued his career in the training pen and went on to produce six AQHA World Champions, two high-point horses, one PRCA Horse of the Year, and five Supreme Champions. Lanham was inducted into the Cowboy Hall of Fame in 1993, and two years later, Mitzi was inducted.

Today, Lanham’s son, Tad Riley, runs Riley Ranches. Along with growing up with horses, Tad began working for his father in the early 80s while attending college at Texas Tech University and Texas Christian University. Tad showed horses at AQHA shows throughout the 1980s and then diversified his career with racehorses for the following ten years. Since 1998, he has continued the breaking, and training in the tradition his father started.

“Our method of starting colts is one that has been handed down from my father, the methods he learned while he worked on the Pitchfork and the 6666s,” Tad said. “It is an old school way, but with a gentle hand.”

Tad employs a small staff to help at the ranch. He usually has an experienced horseman to help with lessons, as well as an international worker that is well versed in horses.

“We offer just about everything for a horse owner at the ranch,” Tad said. “We train a large spectrum of horses including roping, racing, dressage, and reining. We offer boarding, buying and selling services, lessons for adults and children – including English and Western – and offer trail rides.”

Riley Ranches raises Corriente cattle along with the equine enterprise. The cattle supply the stock for roping and offer a good day’s work for the young horses.

Tad also continues the breeding program at Riley Ranches. He currently stands MF Champs Stripe a 1993 foundation bred dun stallion of Poco Bueno and King descent. Tad breeds about 20 mares to his stud each year and is pleased with what he is getting by his stallion.

“Champ is producing nice babies, especially when crossed on the newer bloodlines,” Tad said. “They end up being hardy, low maintenance horses that are gentle, but still athletic.”

Tad was raised with versatile horses and that is what he aspires to continue breeding.

“I like a good, using horse that is durable. The first thing a person should look for is good legs and feet, since that controls the soundness of a horse,” Tad said. “And a horse needs to be willing. A good attitude is so important.”

For more information on Riley Ranches and their services, contact Tad Riley at (817) 443-3606, email at lanhamtriley@aol.com or visit www.ranchforeman.com/lanhamtriley.