What you are even asking makes zero sense. Marginal costs includes fixed and variable costs.
It does not matter if you are looking at fixed or variable costs, it has been explained over and over to you that 4 horses at 5k a month is NOT yielding a significant amount, if ANY profit.
If you are so fixed on financial terms, please think about marginal social costs:
“Marginal social cost is an economic principle that attempts to determine the cost society must pay for a project to happen or to produce a single unit of something.”
What do you think the marginal social costs have been to MB by having LK at his facility?
All she did was ruin his life.
The idea that 5k a month was worth it to MB is absolutely absurd, not matter which way you look at it financially.
Arrogant much? I for sure understand the difference between marginal and average costs. The thing you don’t seem to understand is that each horse participates in the fixed costs of running the place. So, I agree with you that more horses divides the fix costs out resulting in lower fixed costs per horse. My point, which you blithely ignored, was that at $1700 per month he’s entering the territory of a deficit. Do you even know what a full care barn is? Someone has to pay a groom to tack up Dobbin and then unpack, groom, and put away. Even if you don’t show up to ride.
The barn I was at had three people just to clean stalls, turn out, and feed. It wasn’t full care. If it was they would have needed at least two more people. I went through a cost analysis and the hard costs for each horse was somewhere around $700 a month. This did not include the electric and all the other expenses. And there were only 20 horses. I heard HH had around 40 and, with full care, they probably needed at least 10 people some of whom were assuredly working students.
What exactly is your involvement in the horse industry? I have run a boarding barn, bred horses, and showed on the AA hunter circuit for decades. I am now in dressage land and love it and even have a step down to retirement which involves breeding dressage horses.
It’s hard to understand why anyone would enter into an agreement to board all these horses at a financial loss if that were the case. I wonder why MB ever agreed to this arrangement which appears to be a horrible financial decision based on the posts here.
The recurring obsession with MHG - “harping”, one might say, (didn’t IM go on about her as well?) as well as the need to make the frustrated comment “I could just kill her” into evidence of a plot of some kind is more than bizarre. It has always read to me IMO as a bit of a desperation series of squirrels. Anything to exonerate LK - even when the vile things she has said, done and admitted to are out there in the open for all to see. No, surely MHG is to blame for all this! /s
It is tragic - and a sign of someone in trouble who delights in causing trouble.
If you can… because in a specific area, the horse community is actually quite small… and word of iffy boarders/suppliers/farriers spreads around the barns.
IMO it is a mistake to apply the term logical to most of LK’s frenzied thoughts and actions about this mess… it is all very sad.
One word - impeached. And yes, she sat there and lied - as other witnesses made clear.
Yes - and she was proud of her witty repartee, superb intelligence and manipulative scheming.
Hush now… nothing you have done means you have any expertise or credentials in some eyes here. I have managed barns, worked on the backside, on breeding farms and in BNT show barns, groomed at National shows… been involved in a variety of disciplines and breeds… and yet I have been lectured here that I know nothing about anything. Especially boarding issues… and dealing with extremely difficult boarders or trainers or coworkers.
In deciding whether to take LK on or not, MB would have considered the private marginal cost to him, not the social marginal cost, and compared the private marginal cost incurred by him to the marginal revenue of taking her on as a client.
Additional costs of a full-care barn are holding for the farrier, mane pulling, body work, exerciser time (maybe not back east, but huge in Calif.), clipping, blanketing, booting for turnout, and then a pile of costs for showing.
Imagine being so clueless to business finance that you believe it’s worth taking a certain amount of money a month from a client that barely, if at all, covers the costs of your expenses but absolutely RUINS your business by their destructive
presence.
Let’s be generous and say MB made $200 a month after all said and done by boarding and training 4 horses with LK.
Said client was driving away clients from the property, interrupting the possibility for new clients, was ruining the social environment of the barn, brought drugs onto the property creating a huge liability with just her riding under the influence, was a physical safety threat to the owner and those on the farm - as was her significant other, was a potential threat to 6 figure horses on the premises, caused the barn owner to be removed from his own home to sleep on a porch, evoked fire marshals to shut down facilities, cost the facility $5,000 to debug the facility of unauthorized recording devices, cost MB $100 a night in additional security, attempted to damage the reputation of every trainer on the farm, cost MB his sanity, put incredible stress on personal relationships, was overall incredibly detrimental to the over all business environment, so on and so on and so on.
Imagine thinking this environment was worth the marginal profit, assuming there even was one, and thinking it’s others who are clueless to business acumen but not yourself.
