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Buyers select cattle from comfort of home
Virtual ring retains competitive bidding, reduces stress on cattle BY JAY KIRSCHENMANN Excerpted from Argus Leader, all relevant copyrights apply. |
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Glen Thompson of rural Aurora said it took him awhile to get up the nerve
to buy cattle from an Internet site. Now it's his preferred way to do business. "I don't enjoy sitting at the sale barn, buying cattle that have been transported and that have stood around for days, then getting home after dark," said Thompson, the second of three generations farming northeast of Brookings. He and his sons Mike and Greg run the family operation. They often recruit the same truckers who transported sale-barn cattle to fetch cattle from ranches in the region where they buy from the Stampede Cattle Co. site, www.stampedecattle.com. "I guess I'm still nervous - I was always nervous at the sale barn, too, but there you have more chance of cattle sharing disease," he said. "This is a nice way to buy good, fresh cattle." Thompson likes to put in bids when he has time, over the lunch break or later at night. "It's real convenient," he said. There are several on-line cattle-buying sites, including CattleSale.com, a marketing service of The CattleSale Co., and the Stampede site. Stampede makes 1.5 percent commission on its online sales. It has more than 60 qualified field representatives, said Mike Bottin, regional manager for Montana, North Dakota, South Dakota, Wyoming and Minnesota. The fast-paced, interactive format re-creates the competitive bidding atmosphere of an auction without delays or interruptions. Stampede sold 4,000 cattle in approximately 45 minutes during its most recent auction, Oct. 16. Since the launch of its online service in early April, it has marketed 60,000 head of cattle, representing $35 million in gross sales. While special auctions are routinely set, bidders can place bids 24 hours a day, Bottin said. Actual trading hours are 10 a.m. to 3 p.m. Central Standard Time Monday through Friday. "My network of field reps scour biographies and collect it all on a sheet of paper that is signed by ranchers before it is up on the Internet," he said. Bottin sees two kinds of buyers using the Stampede site: One likes to get online, make a decision and buy cattle in 40 seconds. The other likes to take two weeks to study cattle, watch the markets to see if prices go up or down, then decide when to bid. Sellers who want to move a lot of cattle often will combine with neighbors to make large loads rather than trying to sell small lots. That's because many buyers like to buy larger offerings, Bottin said, so both sides benefit. Buyers arrange their own trucking, or Stampede can help find trucks. The sellers get their money from Stampede, so they don't have to worry about a check being good. And the buyer is given a warranty certifying that a rancher gets what is paid for, including weight and delivery date. "We're just adding more certification to an age-old business," Bottin said. "The new way of selling cattle is really just like the old way, just more convenient." "Stampede provides us with the storefront, the window dressing, and mechanics to do it. The rest is the people - field reps building trust and relations with sellers," he said. Cattle lots are listed with photos and a lot description in the sale catalog. Registered buyers can place pre-bids on cattle or wait until the auction begins. As each lot enters the Stampede Stockyards' virtual sale ring, a floor price set by the seller is given and the bidding begins. A 30-second shot clock and animated auctioneer make the process convenient and entertaining. Lots typically sell in 45 seconds or less. A buyer who bids owns the cattle unless he or she is outbid. If there are no bids in 30 seconds, a "no sale" is posted and the next lot enters the ring. "We've created a live auction environment that generates excitement, competition and true price discovery," said Chris Nelson, president of Stampede Cattle Co. "Buyers appreciate the honest format, and sellers have another marketing alternative." Another popular cattle sale site is the 4-year-old www.cattlesale.com. Like Stampede, it is represented by a network of authorized agents in field offices in major territories where cattle are produced, according to Clear View President John Hovland. "CattleSale depends on these valued partners for fair and accurate assessment of cattle quality, health, size, breed and other important attributes we offer for sale," Hovland said. Reach reporter Jay Kirschenmann at 331-2312 or via e-mail at jkirsch@argusleader.com |
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