The Economy and the Sales

re: The Economy and the Sales

Smarty — Thu, 07 Aug 2008 13:04:09 GMT

So if I go to the sale with three I should expect to buy one back. Hopefully the other two would at least carry the expense of entering the sale and paying all the grooms, feed, and commissions. If you're a big nursery with a lot to sell then maybe it would be attractive, especially if you have people to jack up the bidding.

As a buyer I have to be careful with bidding because I don't know if the competitors are real or just other agents.

re: The Economy and the Sales

Just Talking — Thu, 17 Jul 2008 17:46:25 GMT

A buy back rate of roughly a third is actually shameful. What other business would an owner of property tell an above average auction house that a third of the products are not being bid true market. Horse racing is dieing, and this is only one of the reasons.

re: The Economy and the Sales

macawwoman — Wed, 16 Jul 2008 21:22:46 GMT

Sellers of Thoroughbreds can set a reserve price on a horse and the horse will not be sold unless the bidding exceeds that amount. The reserves often are turned into the sale company and given to the auctioneers. However, some sellers or their representatives don't turn in a reserve and actually participate in the bidding and protect a horse that way. When a horse does not sell because the the bidding price fails to pass its reserve, it is called a buy-ack. or we say the seller buys back the horse. Horses that receive no bids also are included in the buy-back rate as are horses whose highest bid doesn't meet or pass an auction's upset price or the price below which a horse will not be sold. Not all auctions have upset prices.

A buy-back rate in the 30% range is considered to be acceptable in this day and age, and it's all that unusual when it is 40% or higher at a 2yo in training sale. Lower buy-back rates used to be more common. A lower buy-back rate is considered to be better because that means fewer sellers were satisfied with the prices their horses brought.

re: The Economy and the Sales

Aristides — Wed, 16 Jul 2008 04:04:49 GMT

I have a question that is off the topic written. I am new to the horse auction world. What does it mean when the buy back rate is mentioned? Is it good for it to be in the 30% range or is a lower number better? Thanks.