It's reassuring to know traditional values like customer service, honesty, and integrity have not been left behind by the livestock marketing industry during these changing times. However, for the beef industry to keep up with a fast-paced business world, many of the old practices are melding with new technologies.

The most dramatic changes are with new methods of marketing. One livestock marketing company is combining the advancements in technology with traditional values to lead the stampede into a new marketplace.

Stampede Cattle Company (www.stampedecattle.com), based out of Visalia, CA, has orchestrated this necessary blend for a prime fit in today's cattle industry. Their current level of contribution to the cattle industry can be measured through the 25,000 head sold in the first four months since their launch. This sales figure and the listing of an average of 4,500 head per week have tagged the company as the industry's fastest-growing online marketplace.

The nuts and bolts of the business is to offer daily trading of stockers, feeders and breeding stock, using the Internet as a marketing tool. The application of on-line technology creates a 24-hour, seven-day-a-week, cattle listing location, with trading between Monday and Friday from 8 a.m. to 1 p.m. Pacific Standard Time. The trading works in coordination with the futures market by starting one hour after the Chicago Mercantile Exchange opens and concluding two hours after the daily futures market closes. Stampede Cattle Company decided to conduct their business using this type of a setup as the result of research and feedback from buyers and sellers.

The Internet opens up the marketing window and expands buyer exposure to a global level. Conducting business on-line also adds the opportunity for their buyers and sellers to utilize information from the futures market, or other daily trading activities, for a real-time marketing transaction. Despite severely declining cattle prices and an extremely unpredictable futures market, Stampede Cattle Company has exceeded expectations during its initial phase.

How can a start-up cattle marketing company flourish in a recessed market?

The competition for Internet marketing companies is through live and video auctions. Stampede offers an advantage to sellers over other methods of marketing when the market experiences a downward trend over a consecutive number of days, as it did this spring. "With such chaos in the futures market, our marketing service is ideal because our sale day is every day and to a vast number of buyers," said Chris Nelson, president of Stampede Cattle Company. Customers selling cattle on the Stampede website did not have to take the offered price on days when the market was low. "When producers consigned their cattle through marketing venues such as video auctions this spring, they had to accept the price offered that day, even if the price was low due to depressed futures," said Nelson.

Stampede's consignors' cattle remain on the market at the same asking price until the market breaks loose. At that point, sellers are able to pull the trigger and sell the cattle for the reasonable price they desire."When there's an up in the market, coupled with buyers' pent-up demand, we've sold everything on our site priced in the ballpark," said Nelson.

The advantage is not just limited to the seller. They've found a true advantage for the buyer, as well, during those occasional market rallies. When buyers need to purchase a certain number of cattle and a rally peaks, the cattle are available to fill their orders. Stampede predicts this trend will continue.

A refinement in the business, which has also helped Stampede prosper, is adding the element of personalized service. Implementing this comes naturally out of the grassroots background of the company and its personnel.

Stampede's management retained their network of 60-plus experienced field agents and regional managers after departing CattleSale.com to start the new venture earlier this year. Managers Chris Nelson and Pete Holman bring to the table a combination of more than 20 years of experience. "Our success relies on the solid relationships we've developed within the industry," said Nelson. By beginning the new company, they feel they have more control over the integrity of their business, while creating value for their customers.

How does a cattle marketing company establish value?

Stampede's merit has and will continue to rely on how they market cattle. The duty for establishing a strong reputation will fall mainly on the shoulders off the field representatives. Part of their job is to provide accurate summaries of the cattle. "If the description is not accurate, the buyers end up bidding less because they don't know what's there," said Nelson. "It's one thing to say you have an accurate description, but then it's another to deliver cattle on those specifications. It takes a rep with integrity to go to a ranch and describe the cattle accurately and professionally."

Eventually, this will help the field agent provide customers with a true value price for their cattle, rather than an average. Nelson views their level of integrity, accuracy and professionalism amongst the field reps as their niche in the marketing industry, with improvements already occurring.

The other logical step in establishing value, which is already taking place, is an increased volume of cattle offered for sale. The more cattle offered means a larger pool of buyers.

Stampede Cattle Company is using all of these techniques as the foundation for building their business one customer at a time. "Our mission statement is to provide true value for the seller and to meet or exceed buyer expectations with every delivery," said Nelson.

The reputation and relationships previously built by Stampede's employees have already transferred to the new venture to leverage a nationwide customer base. The diverse and growing roster of customers would indicate an agreement with the business plan.

Three of Stampede's customers, Tim Kvamme of Voltaire, ND, Kevin Forgey of Casper, WY, and Pete Peters of Jiggs, NV, like working with Stampede because they feel they have more control over the sale of their cattle and appreciate the virtue and dignity of their local field agent. This is the second year the Peters Ranch has consigned with their Stampede representatives, who previously represented CattleSale.com, and the third year for Kvamme and Forgey.

"I run a small custom feedlot and know almost to the dollar what I'm going to get before my cattle leave the yard," said Kvamme. "Stampede has really good people, and there's nothing to lose from a seller's standpoint. You can set your terms while exposing yourself to buyers all over the country. I'd recommend it to anyone."

Forgey likes the fact you can wait until you receive the price you want rather than taking the price that's available on a specific day. "The technology gives your cattle more visibility, and I have more control over factors such as shrink," said Forgey. "I sold some heifers back in February and received all the market would allow. My buyers have also been pleased."

Peters sells his calves straight off the cow. He appreciates the fact he can advertise what he's selling, and if he has any questions, he can call his field rep. "I really like it because lots of people get to see the cattle and the people are real easy to work with," said Peters. "You put a price on the computer and then buyers put bids on it and you take the highest bid."

What does the future hold for marketing cattle?

Stampede will continue to provide buyers and sellers with the latest marketing technologies on their easy-to-navigate website in a bid-and-ask format. Sellers will continue to receive hands-on service, true price discovery, low commission rates and unlimited buyer exposure. Buyers can continue to expect to receive accurately described cattle straight from the ranch.

In keeping with the changing times, Stampede is planning to add a live auction as a supplement to the daily Internet sales. "There is new technology out there we can use to make it a little more interesting, a little more animated, and a little less sterile," said Nelson.

The live auction may be used to roll cattle from the country page of their website - cattle needing to be marketed more quickly. Stampede will be better equipped to help the beef industry stay on top of the business by adding this tool at a time when contract numbers are down and large numbers of cattle are coming off drought-stressed pastures. Additionally, it will help their customers have a national price basis for comparing their cattle, since these animals will be offered in a real-time, live, Internet auction.

Keeping consistent with their business motto and the current services they provide, the auction will focus on presenting sellers with the true value of their cattle, while buyers can expect their needs to be met or exceeded. Stampede Cattle Company expects to have the service available to customers prior to the fall run.