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Marketing—The Missing Link in the U.S. Sport Horse Industry Scott Hassler, Director of Training at Hilltop Farm and Chairman of the USDF Sport Horse Committee Willy Arts, Co-owner and Trainer of DG Bar Ranch Ekkehard Brysch, Executive Director of the ISR/Oldenburg Registry of NA The breeder must create a market, and then meet the needs of that market. The missing link is that the breeder must be able to reach the buyer, and the problem is more than that of distance. First, the breeder must be able to offer a quality product, and second, the breeder must have opportunities to present the horse, including an appropriate person to do the presenting if the breeder himself/herself is not qualified to do so. While auctions are well-developed in Europe, the members of the committee (including Mr. Brysch, who is from Germany and VERY familiar with the system there) do not feel they are a viable alternative for the United States for the following reason: In Germany, where they are most successful, they still involve less than 1% of the young horse market. Most of the young horses sold at auction would be sold easily for as much or more money anyway. The major function of the auctions is really as a social event for the trainers and riders to get together, and for networking surrounding the auctions. A great deal of the sales work is done prior to the auctions, and the auction itself is really a social/public relations occasion where the real pupose is really networking. In actuality, the auction is a public relations and marketing tool, rather than a sales tool. For a breeder in an area that is not high profile for dressage, the panel recommends that the breeder place their horse with a trainer who can represent the horse in a higher traffic area, or, if the horse is not yet under saddle, take the horse to breed shows and/or keurings. Web sites can also increase access to prospective clients. Mr. Brysch laments the fact that breeders in the United States do not avail themselves more often to licensings, mare shows, auctions and breed shows. In Germany, these attract thousands of spectators, but in the United States, you can count the number of spectators on your fingers. He sees this as a major weakness in our breeding programs, as our breeders are not seeing firsthand what crossings work and/or do not work, and they are not getting the information needed to make rational breeding decisions, and what their market needs and/or the breed societies are looking for—as a result, breeders are making, he feels, too many decisions based on emotion rather than on fact. We have made progress by adding materiale classes, futurity classes and classes like the American Bred Awards at the Dressage at Devon show which encourage Riders/Breeders/Trainers to focus on horses earlier in their careers and to build a correct foundation, but he feels that breeders need to group together to bundle their efforts and abilities and build a network amongst themselves. A question was asked as to whether in-hand results were really a marketing tool. It was pointed out that QUALITY is the most important factor in determining sale-ability of a horse. While the Adult Amateur rider is not looking for an Olympic horse, they are still looking for 3 good gaits, and the breed show allows comparison of your horse to others, and also gives you feedback on your breeding program. Keep in mind that it is subjective, and judges will vary in their opinions. Additionally, horses may also not show themselves well on a given day, but over time, your scores should be a reasonable assessment of both the individual horse and your breeding program overall. EVERY breeder’s goal should be to produce a horse that is useful for the majority of riders, meaning that character and rideability cannot be ignored in any breeding program. Regardless of the current exchange rate between the $ and the €, you still need a product that meets the needs of the riders and trainers in order to make a sale!!! When asked where to advertise, Willy Arts answered that there were many variables to consider, but in general, he preferred word of mouth. He also said that no matter what form of advertisement you use, be sure to be honest. If you get clients to look at a horse on false pretenses, you won’t make a sale, and if they spent good money on plane fare to come look, you will also make it that much more difficult for your fellow breeders. On the subject of sales tapes: it was recommended that breeders who were not experienced handlers go to clinics to learn the appropriate skills before attempting to make a sales tape—the only way to learn is by doing. As for videos of horses under saddle, these are used only rarely in Germany, but are a necessary evil in the United States due to the size of the country. A sales tape should include conformation, walk/trot/canter under saddle, and a demonstration of the level of training. Willy Arts hates making sales tapes because they never really reflect the horse the same as in the flesh, and they are prone to over analysis. A prospective buyer will show them to 20 people, and will get too much advice: “The walk isn’t as good as my horse’s. They want how much? I only paid X for my horse…that’s too much.” “The canter isn’t as good as my horse’s. They want how much? I only paid Y for my horse…” etc., etc., etc. As a result, the video often gets used against the seller unfairly. What if the breeder can’t afford to pay for training on the 3 year-old unsold horse? Willy Arts suggested looking for a trainer that is willing to work out a partnership agreement in exchange for a longterm relationship with the breeder of quality young horses. The agreement should be in writing, and should specify how the fees will be split at the time of sale (i.e., 60/40 for sales price) and who will be responsible for competition expenses (50/50, or payable by one or the other), board, and who will do the marketing. Many trainers, particularly those who like to show and/or those trying to make a name for themselves, are amenable to this sort of agreement provided the breeder has high quality horses. It was again noted that breeders in the United States are at a disadvantage compared to those in Europe, because our breed societies do not provide us with the same degree of assistance in sales and marketing of our foals. Mr. Brysch said that the FNASHB is looking at ways to change this via new concepts and tools, and with providing breeders with an inside view on breeding and other marketing information. Willy Arts added that in Europe, the breed societies have more members, which provides them with greater strength and the ability to do more and to organize more events with greater attendance. Recommendations for a breeder starting out:
Given that 60% of USDF members are Adult Amateurs riding below 3rd Level, what does this mean to breeders? Willy Arts replied that every Adult Amateur wants good gaits, even though they are showing below 3rd Level, but they still cannot do without rideability and trainability. Every professional also wants rideability and trainability. When you see a horse listed as a “Professional’s horse” it is often because it lacks rideability and because no one else can ride it—NOT because it has super outstanding gaits that an adult amateur doesn’t want!!! A HORSE IS USELESS IF YOU CAN’T GET THE QUALITY OUT DUE TO A BAD TEMPERAMENT!!! Two different breeding awards originated at Dressage at Devon that have increased the enthusiasm for breeding and engaged the audience—and which are seen as positive steps for Sport Horse breeding in America, plus a third specific for the Dutch Warmbloods. The first is the $20,000 North American Breeder’s Futurity, which is only open to horses born in North America, ages 5 and 6. The second was the Born in America classes, which this year had total purses of $14,000 awarded over 11 classes to horses conceived and foaled in the USA in which 75% went to the owner and 25% to the breeder—these were High Point Awards for in-hand classes but it will be expanded to the Materiale Classes for next year. The third is the DG Bar Cup, for 3 year-olds held as part of the NA/WPN keurings, awarded to the highest scoring youngster in the materiale-type section annually. All breeders were encouraged to attend breed shows to see the state of the art in breeding, and to also go to materiale classes (as spectators or participants) to see how they are currently being judged and to learn what the goals are for breeding. If possible, they are also encouraged to go to the finals of 100-Day Testing. It was suggested that horses be priced based on what the seller would be willing to pay for a similarly qualified horse. Keeping a steady presence in the market makes sales easier—via showing, ongoing sales, steady quality. Then you don’t have to advertise as much. There is a “training gap” in the United States in that many riders are not taught to train and don’t know what to do with a 3 – 4 year-old horse. In Europe, there is a group of riders that specialize in bringing along young horses rather than riding to the FEI levels, and that are known for presenting horses to Bundeschampionates, etc. The USDF is trying to encourage that here. Back to the USDF Convention Table of Contents. |
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