Strategy's for selling chicks and young birds

[LhigginsTN]

I experimented a few years back with selling chicks and hens to offset feed costs. The goal being to hit a breakeven point where I don't really make or spend money. I found that selling baby chicks produces the best profit margin with less risk. I have very little costs in a chick, they sell easily, and frequently I sell them for $3-5 each for a huge margin. If I sell a pullet at 4 months it costs me a minimum $8 to get them to that size. The sell price varies wildly between $15-30, Every month they don't sell adds $2.50 to my cost. At 12 months old I've got about $28 on the low end and can't sell them at a profit unless you factor in the value of the eggs they produce during this period. And the roos will almost certainly be a loss unless I cull them and use the meat myself.

I've more or less started over and I'm rebuilding my flock. I have a pair of millefluer which should lay up to 100 eggs per year. A trio of Speckled Sussex which could lay as many as 500 eggs per year. And a group of 4 buff Orpingtons. I'm not going to be setting all of these eggs, we selectively hatch some and eat the rest. And they also will likely lay less than these rates. I'd like to add a few more trios as I build back up leaning away from standard breeds.

I have an auction that is 60 miles away. Most of my previous experience was with this auction and the people managing it are careless with the animals. Disease is an issue and they don't provide water as the law requires. The distance also creates an issue where I need a minimum amount to justify going up there unless I'm also buying.

I've recently found a much better auction that occurs 4 times per year. I want to plan next years efforts around selling at these 4 events. I also have a few flea markets which are 50-100 miles away. And I sometimes sell locally using craigslist and bulletin boards.

The market is unpredictable and oversaturation is an issue. I'm offering fewer head count and a larger variety of birds for this reason. With what I currently have my goal would be to offer 1-2 trios of each breed at all 4 sales. I'll use the milliefluer for an example. I plan to set their eggs every week. I would be thrilled to produce 30 adult birds from this pair in a year but even that is a stretch. I need 16 adults on average to meet my schedule for these 4 sales(1 roo is sold elsewhere). I'm going to avoid digging into the math any further but this offers me the best chance of breaking even with this breed and feel pretty comfortable that I can do so if I carefully manage this flock. The issue here is that there is 1 known level of inbreeding for these trios unless I can source some roos from elsewhere.

 

[TexasBlues]

Business Plan: Poultry Breeding and Sales

1. Executive Summary

• This business focuses on breeding and selling poultry, primarily chicks and hens, to offset flock maintenance costs and achieve a break-even point.
• The business leverages the higher profit margins of chick sales compared to mature birds.
• Sales strategies include participation in select auctions, flea markets, and local listings.
• The strategy emphasizes offering a variety of breeds in smaller quantities to mitigate market oversaturation.

2. Company Description

• This is a small-scale poultry breeding operation focused on producing and selling quality chicks and hens.
• The operation prioritizes breeding specific breeds, including Millefleur, Speckled Sussex, and Buff Orpington, with plans to expand breed variety.
• Emphasis is placed on responsible breeding practices, though inbreeding concerns are noted and need to be addressed.

3. Products and Services

• Chicks: Primary product, offering the highest profit margin with lower investment.
• Hens (Pullets and Adults): Sold at varying ages, with profitability decreasing as birds mature due to increased feed costs.
• Roosters: Sales are challenging, primarily for meat or specific breeding requests.
• Eggs: While not the primary focus, egg production from the flock contributes to offset costs, especially for older birds.

4. Market Analysis

• Target Market:
  • Backyard chicken enthusiasts
  • Small farmers
  • Individuals seeking specific breeds
  • Auction buyers
• Market Trends:
  • Demand for specific breeds is present but unpredictable.
  • Oversaturation can be a challenge, requiring a focus on variety.
• Competition:
  • Other breeders
  • Large-scale hatcheries
  • Local sellers
• Competitive Advantage:
  • Variety of breeds offered in smaller quantities
  • Focus on quality (though inbreeding needs to be managed)

5. Sales and Marketing Strategy

• Sales Channels:
  • Select Auctions: Focus on the better auction, held 4 times per year, due to its improved conditions and potential for higher-quality sales.
  • Flea Markets: Occasional sales at flea markets (50-100 miles away) to reach a different customer base.
  • Local Sales:
    • Craigslist
    • Bulletin boards
    • Word-of-mouth
• Marketing:
  • Breed-specific advertising
  • Highlighting the quality and variety of birds
  • Building relationships with auction attendees and potential customers
• Pricing Strategy:
  • Chicks: $3-5 each (high profit margin)
  • Pullets (4 months): $15-30 (price varies, profitability decreases with age)
  • Adult Hens: Pricing to cover costs, considering egg value
  • Roosters: Primarily for meat or specific requests (pricing to minimize losses)

6. Production Plan

• Breeding Stock:
  • Millefleur (pair)
  • Speckled Sussex (trio)
  • Buff Orpington (group of 4)
• Breeding Goals:
  • Strategically hatching eggs to meet sales goals while maintaining flock size.
  • Example: Millefleur – Aiming for 30 adult birds per year, with 16 needed for sales (challenging goal).
• Production Schedule:
  • Setting eggs weekly (e.g., Millefleur) to ensure a continuous supply of chicks and birds at different ages.
• Flock Management:
  • Careful management of feed costs to optimize profitability.
  • Addressing inbreeding concerns through careful breeding decisions and potentially sourcing roosters from other breeders.

7. Financial Plan

• Start-up Costs:
  • (Needs to be developed with specific figures)
  • Initial breeding stock
  • Coop and equipment upgrades
  • Incubator and brooder setup
• Revenue Projections:
  • (Needs to be developed with specific figures)
  • Chick sales revenue
  • Pullet/hen sales revenue
  • Egg revenue (offsetting costs)
• Cost of Goods Sold (COGS):
  • (Needs to be developed with specific figures)
  • Feed costs (major expense, needs careful management)
  • Bedding
  • Medications/healthcare
  • Transportation costs (auctions, flea markets)
• Operating Expenses:
  • (Needs to be developed with specific figures)
  • Advertising/marketing
  • Supplies
• Profitability Analysis:
  • Break-even analysis (as the primary goal)
  • Profit margins for chicks vs. older birds
• Funding Request (if applicable):
  • (Needs to be developed if seeking external funding)

8. Management Team

• (Describe your experience and skills in poultry breeding and business management)
• Highlight any relevant expertise.

9. Appendix

• (Include supporting documents, such as)
• Detailed sales records from previous years
• Cost calculations for feed and other expenses
• Market research data

Key Areas to Develop Further:

• Financials: The financial plan needs significant development with actual cost figures, revenue projections, and profitability analysis.
• Inbreeding Mitigation: This is a crucial issue that needs a clear strategy.
• Breed Expansion: Develop a plan for adding more trios/breeds, considering market demand and profitability.
• Sales Forecasting: More accurate sales forecasts are needed, especially for mature birds.
• Auction Logistics: Detail the logistics of attending auctions (transportation, coop setup, etc.).

By fleshing out these sections with specific details and numbers, you'll have a much more robust and actionable business plan. Good luck

 

[CalgaryFarmer]

I have had really good luck selling chickens. I sell trios and laying hens, generally around 20 weeks to 1 year old. I price them high. Get a nice looking breed. Really good photos are crucial. I go after the “my chickens are my pets crowd.”

 

[ItzaKat]

I have had really good luck selling chickens. I sell trios and laying hens, generally around 20 weeks to 1 year old. I price them high. Get a nice looking breed. Really good photos are crucial. I go after the “my chickens are my pets crowd.”

I would like to try this, and I’m planning ahead. I’m in the US (Texas), and I know that my daughter purchased laying hens for $25-$30. When you mentioned pricing them high, do you mind telling me whether what my daughter paid is considered high? I hope that makes sense

 

[CalgaryFarmer]

I am in Canada. I charge US$70 (the equivalent) for point-of-lay pullets and US$42 for 1 year old hens. For repeat buyers I sell for less. I don't sell many so I post them to our Craigslist and leave them on there until they sell. There are not many sellers and our local city now allows residents to have 4 hens. That is the market I am targeting although that has not been where I end up selling them.

Again, I am targeting the “my chickens are my pets” and I do not think it is unreasonable for someone to pay US$200 for 3 beautiful well-raised hens. In fact, I would not want to sell them to someone who is not going to appreciate them. As well, at the end of the day, I am prepared to keep them so I do not move on price.

It will likely depend on your market. See what is currently available in your market and try to pick something different. Hens that lay blue or green eggs will likely get you a premium. As well as marans that lay dark brown eggs. Nice looking hens like wyandottes might be a good choice. Great photos are crucial in my view. I want someone to look at the photos and say “those are the hens I want”.

I don't sell many so it is not a money maker but it more than offsets my costs.

 

[ItzaKat]

I am in Canada. I charge US$70 (the equivalent) for point-of-lay pullets and US$42 for 1 year old hens. For repeat buyers I sell for less. I don't sell many so I post them to our Craigslist and leave them on there until they sell. There are not many sellers and our local city now allows residents to have 4 hens. That is the market I am targeting although that has not been where I end up selling them.

Again, I am targeting the “my chickens are my pets” and I do not think it is unreasonable for someone to pay US$200 for 3 beautiful well-raised hens. In fact, I would not want to sell them to someone who is not going to appreciate them. As well, at the end of the day, I am prepared to keep them so I do not move on price.

It will likely depend on your market. See what is currently available in your market and try to pick something different. Hens that lay blue or green eggs will likely get you a premium. As well as marans that lay dark brown eggs. Nice looking hens like wyandottes might be a good choice. Great photos are crucial in my view. I want someone to look at the photos and say “those are the hens I want”.

I don't sell many so it is not a money maker but it more than offsets my costs.

Thank you so very much for the quick answer! We have had our chickens since last June and have added to our flock as the year has gone on. We do have 3 acres, so I am able to have quite a few chickens at one time.

I’m not looking for something that makes a lot of money. As you mentioned, I would just like to offset my costs. I want to keep the fun in raising my chickens therefore, I’m not PLANNING to get too down in the weeds about it. We’ll see how that goes.

What you mentioned as your pricing seems very reasonable for a family who wants the chicken and egg experience that so many families are wanting for their children. I do have Starlight Green Eggers and Crested Cream Legbars laying my colored eggs. I’ve been trying to get to my nearest town to grab 3-4 Maran pullets, but they are going fast. I know that I love to see the different colors, and I would imagine many people would be wanting the same.

Again, thanks for your time and advice. Chicken folks are the best.

 

[CalgaryFarmer]

Glad I could help. Best of luck.