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Wednesday, March 9, 2011

Marketing Comments

I found out today that my brother reads my blog.  He sent me the following comments about marketing and I defer to  his judgement as I think that marketing has been a strong point of his operation over the past 30 plus years.
Dave



Read your blog. Let me point out that the market doesn't care what your cost of production is.


So what do you do if the market is below cost of production and less than what you need to replace machinery and recover costs what do you do??


I contend that watching market trends, Knowing that the market is at a high or low point, And which months that you should sell to get the best price are the most important. What is the long range weather forecast. Do you need to sell because of storage ? Etc. Your cost of production has very little to do with marketing.

2 comments:

Dave Rahe said...

It is vital to know your cost of production. I understand what he means by saying that the market doesn’t care what your cost of production is. It doesn’t. That is why you must know yours in order to measure where you are going. The market is always seeking breakeven and it doesn’t care if anyone makes money or not. Everyday in the market 50% win and 50% lose. Knowing your cost of production helps you decide which side of that equation that you are on.

By Randy Darr

Dave Rahe said...

I like these comments because they provide different viewpoints and show the diversity of marketing strategies.