When it comes down to it, the cost of manufacturing a high-quality product is the same for most companies producing equipment for the livestock and poultry markets. Most companies have identified the most efficient methods to build an anchor bearing, motor, feeder, nipple waterers, etc.
The real cost difference comes from the delivery of those products to the end user. The standard model of distribution, in our industry, involves a manufacturer producing a product line, warehousing it, and employing a sales force to establish a dealer network.
The dealer network stocks the equipment, maintains a storefront, hires salespeople, installs, and services the production systems in a local area for the brand of equipment they represent.
This particular type of distribution model has changed very little over the history of the livestock and poultry production industries. Each member of this distribution model is an independent business entity and is free to add whatever margins they deem necessary (or possible) to the final cost a producer pays.
Sold through a different type of distribution model, GrowerSELECT goes directly to livestock and poultry growers through our network of regional local stores. Because we own the distribution chain from top to bottom, we add only ONE MARKUP over our cost.
Our cost is based on finished goods plus ONE MARKUP vs. MULTIPLE MARKUPS from the typical distribution model.
Also, we would suggest that we are the low-cost producer for most products. Wait a minute; the first paragraph said the cost of manufacturing was the same for everyone.
True. But if a brand has a loyal dealer network, the pricing to the dealer network will not be challenged. A loyal dealer will continue to buy brand name products even if the cost is excessive.
Name brand motors are a perfect example of this. An auger or fan company buys a motor from a motor manufacturer, puts their logo on it and sells it to a local supplier. The local supplier sells the motor to the end user adding little value to the final price. A local supplier has few other options. Their volume of a particular motor isn’t high enough to go directly to a motor manufacturer, and they have little negotiating power with their chosen brand vendor. The brand company has little incentive to lower the cost to a loyal dealer network. In fact, a brand company can charge different prices in different geographical locations depending on market pressure.
Compare this with GrowerSELECT motors. Our network of over 70 store locations and turnkey construction business allows for large purchases of motors direct from a manufacturer. We forecast purchase amounts for each store location and ship directly with minimal warehousing cost. Local retail pricing continually drives us to buy at a more competitive price.
The conventional distribution chain is directed from the TOP DOWN versus the GrowerSELECT model which is driven from the BOTTOM UP. Lower pricing for comparable products is the result.
The GrowerSELECT distribution model also affects product responsibility. Because we interact directly with the end users, we deal directly with any problems arising with the installed products. We sell it; we service it, and the end user works with one company.
The traditional marketing chain allows room for some question regarding who is responsible for dealing with equipment failures when those problems arise. The manufacturer can blame poor installation, dealer system design, or a number of other reasons (excuses) for a product’s failure. A local supplier can blame the brand company for poor design or manufacturing flaws. The GrowerSELECT distribution system eliminates “finger pointing” and focuses on providing accountability to each and every customer.
Our customers produce commodities. The lowest cost commodity producer is always the most successful. Our mission is to provide our customers long term value at the lowest possible cost.
Ask yourself this question; “Are all the manufacturers, distributors, dealers, installers, and service personnel creating ADDED VALUE in the distribution chain I buy from?” If you hesitated while answering that question, take the next step by changing the way you buy and implementing GrowerSELECT equipment into your operation.
To contact a sales representative in your area or find our nearest locations to you, click here.
Hog Slat’s newest feed drop hangs straight under the feed pipe to reduce twist. Available in two models; HSSD60C for mounting on Grow-Disk metal pipe or HSS55DC for model 55 PVC pipe.
The Center Drop is molded from UV stable polypropylene to prevent damage from sunlight and cold temperatures. An open-top design permits direct installation on feed pipe and a large access plug allows access to inside of the feeder. A plastic clip for record cards completes the exterior features.
The Center Drop features positive open/close shutoff.
Large adjustment dial permits single-hand regulation feed settings from one to eight pounds.
Nylon wheel reduces wear on lifter cord and the weighted ball securely seals bottom opening.
To order go to http://hogslat.com/hog-slat-center-drop-sow-feeder-8-lb
Hog Slat’s Drop Tube Assembly completes the installation to a metal pipe. Available in 2″ or 3″ models, the flared top reduces feed spillage and provides a flexible mount to sow drops.
Another successful show is in the books for Hog Slat at the 2015 World Pork Expo in Des Moines, Iowa. This year, Hog Slat displayed several new items, including our AirStorm fiberglass ventilation fans, Grow-Disk™ chain disk feed system and the GrowerSELECT® curtain machine. In addition to these new products, we also featured our concrete slats, TriDek flooring, group pen feed stanchions, GrowerSELECT sow drops and more.
Hog Slat hosted a group of Chinese pig farmers that were visiting the United States and attended the World Pork Expo. On Tuesday, as part of their trip, we visited a brand new 2 barn finishing site Hog Slat just completed, located in Lohrville, IA. The group was able to see a new group of pigs that had just been loaded into one of the barns earlier that afternoon, and also examine the inside of the other barn that had not been loaded with pigs yet.
Both of these deep pit barns were equipped with GrowerSELECT Grow-Flex™ feed systems, Hog Slat wet/dry hog feeders and AquaChief cup waterers as part of their equipment package. The group was very impressed with the fit and finish of Hog Slat’s feed system equipment and building construction. To learn more about new construction or remodeling hog barns in the Midwest or other areas of the United States, please visit the Hog Slat sales representative locator, found here.
In an earlier blog post we reported the interest shown in the SowMax (see more….) at this year’s EuroTier. Shown is German sales rep Ulf Maroske as he explains features and benefits to a customer at the show. We later received this email from Ulf concerning a customer who purchased 20 International farrowing crates and 50 SowMAX dispensers to fit on existing crates this October.
“When visited my customer last week the piglets were 14 days old. He placed the sows with the highest piglet losses in the last farrowing in the Hog Slat International crates. He told me had piglet losses of .6 per sow in the new crates compared to 1 piglet per sow in the old crates. This is nice result.”
“When I asked him how satisfied he is with our SowMAX he gave me the short answer. Today he regrets that he installed 50 of them…if he had know the SowMAX worked so well he would have equipped all 90 farrowing crates with them.”
“Compared to his other feeding system he has significantly less feed wastage. Now the sows eat more, the amount is 10kg (22 lbs.), that was not possible before. The sows are much quieter during feeding time”
To see (more…..)