Why stall boarding rates need to at least double across the Midwest

[saultgirl]

[QUOTE=TBROCKS;8287208]
I agree with this. Unless you are throwing them in a field and just letting them free range, there is plenty of work involved in pasture boarded horses. It takes time to drive the golf cart or walk to my back pasture, feed the two retirees who live out there twice a day, hose them down it they’re sweaty, blanket them if it’s cold, fly spray them in summer, dump and scrub the water trough several times a week, check the fence line, throw them hay in the winter, and drag their field occasionally. I recently stopped catching and holding for the farrier, it’s now up to the owner to do that.[/QUOTE]

But don’t you do all these things for stalled horses, too?

[Miss_Motivation]

Continues to be ‘must read’ thread for those of us in the biz.

Skyon asked:
“Serious question. If all board was raised to $1000 so the OP could make this the standard, where are all of the not–able-to show for xxx reasonss, only do x’s occasionally - or light dressage when sound, aged, not aged but nqr, retired horses supposed to go?”

It seems that question was directed toward barn owners- perhaps? But that is a question for every horse owner that has nothing to do with a boarding situation.

It has to do with breeders that keep breeding, and owners that keep buying, whether or not THEY have a sound business plan for the animals they create or purchase.

Barn owners are under no obligation to keep horse ownership affordable or even possible. However… many of us assume that mantle out of a sense of gratitude and responsibility to help the horses and owners that cross out paths.

And that kind of caring and, often, discounting, is never on our business plans. It’s part of what makes boarding a dicey business, in my experience: helping out a special boarder who loves their horse, takes good care of it, but falls on ‘hard times.’

Is there any barn owner out there who hasn’t done this? I do from time to time and am OK with it- but then again, I fall into the group of barn owners who have a ‘real job’ to subsidize the barn. My boarders absolutely will NEVER understand the fact that I, to some degree, subsidize every single one of their horses each month by scrimping on something for my family so that the barn bills get paid, the repairs are made to help keep their horses safe, and there is always toilet paper in the barn potties.

On the other hand… it’s my choice to live this lifestyle and help keep people horsed up. But perhaps I am the problem, not the solution, by offering subsidized boarding rates that falsely support horse ownership when I should not.

I have had wild financial fantasies about showing my books to the boarders, the $200 a month for pest control (in addition to the cats) and $900 a month for the fly spray system and the $100 a month for toilet paper, hand soap, hand towels, and little paper cups for the water cooler. And the labor bills, and that a good rubber hose that they let their horse stand on costs $40. No… I think I’ll just keep trying to do a good job, enjoying the 95% of grateful, gracious, responsible horse owners I have here… while quietly looking for an exit from this place in the next few years.

It’s been a marvelous adventure, but when I think back to the crabby, greedy, mean stable owners I knew in my youth (that’s the impressing they created on a kid) I don’t want to be that person. Age and wisdom have had me walk a mile in their moccasins- and it’s been a very humbling journey.

Again, great thread which I check each evening to see what has been brought to light

[BuddyRoo]

Miss–you sound like a lovely and kind BO. Maybe…too lovely and kind?

I totally hear what you’re saying and putting the horses first is commendable. But realistically, and I say this having sat on both sides of things, I think that you SHOULD charge what you need to charge. And do point out to your boarders and potential boarders some of those things that you do. Many people who board have never cleaned a barn full of stalls, don’t know what a fly management system is, don’t know a thing about pasture management or what shavings cost. They don’t know. So they assume that if you charge X, it’s enough.

I don’t think that most boarders are trying to get something for nothing. But if they aren’t made aware of things like… what hay costs and how much their horse eats? They aren’t thinking “shoot, board may need to go up this year due to the drought we had…we’re not getting 3 cuttings, only two.” BOs who don’t address these changes in expenses and talk to their boarders are screwing themselves needlessly. A grocery store doesn’t take a hit because eggs become scarce. They raise their prices. And people can buy eggs or not buy eggs. Why are some BO’s so hesitant to change pricing to cover the costs?

[QUOTE=Miss Motivation;8287571]
Continues to be ‘must read’ thread for those of us in the biz.

Skyon asked:
“Serious question. If all board was raised to $1000 so the OP could make this the standard, where are all of the not–able-to show for xxx reasonss, only do x’s occasionally - or light dressage when sound, aged, not aged but nqr, retired horses supposed to go?”

It seems that question was directed toward barn owners- perhaps? But that is a question for every horse owner that has nothing to do with a boarding situation.

It has to do with breeders that keep breeding, and owners that keep buying, whether or not THEY have a sound business plan for the animals they create or purchase.

Barn owners are under no obligation to keep horse ownership affordable or even possible. However… many of us assume that mantle out of a sense of gratitude and responsibility to help the horses and owners that cross out paths.

And that kind of caring and, often, discounting, is never on our business plans. It’s part of what makes boarding a dicey business, in my experience: helping out a special boarder who loves their horse, takes good care of it, but falls on ‘hard times.’

Is there any barn owner out there who hasn’t done this? I do from time to time and am OK with it- but then again, I fall into the group of barn owners who have a ‘real job’ to subsidize the barn. My boarders absolutely will NEVER understand the fact that I, to some degree, subsidize every single one of their horses each month by scrimping on something for my family so that the barn bills get paid, the repairs are made to help keep their horses safe, and there is always toilet paper in the barn potties.

On the other hand… it’s my choice to live this lifestyle and help keep people horsed up. But perhaps I am the problem, not the solution, by offering subsidized boarding rates that falsely support horse ownership when I should not.

I have had wild financial fantasies about showing my books to the boarders, the $200 a month for pest control (in addition to the cats) and $900 a month for the fly spray system and the $100 a month for toilet paper, hand soap, hand towels, and little paper cups for the water cooler. And the labor bills, and that a good rubber hose that they let their horse stand on costs $40. No… I think I’ll just keep trying to do a good job, enjoying the 95% of grateful, gracious, responsible horse owners I have here… while quietly looking for an exit from this place in the next few years.

It’s been a marvelous adventure, but when I think back to the crabby, greedy, mean stable owners I knew in my youth (that’s the impressing they created on a kid) I don’t want to be that person. Age and wisdom have had me walk a mile in their moccasins- and it’s been a very humbling journey.

Again, great thread which I check each evening to see what has been brought to light[/QUOTE]

[fordtraktor]

[QUOTE=ToN Farm;8287205]
Maybe not for you, but that is not the case for others. There are various reasons HO’s don’t want their horses out all the time. For one thing, bugs in the hot summers. Another reason is that people that own quality show horses do not want their horses turned out with other horses. OP’s stall boarders pay for the stall because they want the stall. Otherwise, they would be pasture boarders at the lower rate. My horses, here on my own 44 acre farm have free access to stall and pastures. They do not go to pasture until it is dark and cool out.[/QUOTE]

I have large run-in shelters with soft crushed stone bedding built in all my fields, so the horses that prefer a shaded, bug-free place can be in there without the expense of pine shavings. It drains well and I pick them daily. I keep hay in them too in bale-size Nibble Nets so they can even snack. They wear fly sheets and I put on fly boots and fly spray. My horses don’t want back in the barn – I’ve never had one that couldn’t transition to them and be happy out on my farm and we have some real prima donnas between my boarder and me! But I don’t think there is any reason to charge less, this is premium care. They have Nelson waterers, all the quality hay they want, good maintained grass, come in twice a day to eat Triple Crown Senior in stalls, I pay for Solitude to control flies, it’s not classic “pasture board.”

Not everyone wants their horses out of the barn, that’s right. I still don’t think that’s as healthy and you are free to disagree. I have a horse with a slight stable cough, he makes it clear the barn isn’t a healthy place for him. and if it isn’t healthy for him, what is it doing subtly to the other horses? and my barn has open Dutch doors and aisles and is cleaned very well daily, many barns have a lot less airflow and more ammonia.

But anyway, I am giving OP some options that might work for her since she is around to do the premium care but loses money on the inside expense. Most people think “field board” is “hands off/minimal” like you assume but “premium field board with the best of everything and a reserved stall when needed” is another category that some savvy horse owners will pay for. I know when I kept my horse in DC I paid an above-market rate for a place like mine because the care was exceptional, the horses were out according to their needs and the feed was wonderful. That barn is always full too. Lots of good horse owners recognize the value in that model.

[airhorse]

@BuddyRoo;8287620

Why are some BO’s so hesitant to change pricing to cover the costs?

Because boarders will leave over $10. One empty stall eats the margin of several full ones.

[TBROCKS]

[QUOTE=saultgirl;8287566]
But don’t you do all these things for stalled horses, too?[/QUOTE]

Yes, but I think the perception is pasture board doesn’t involve much work on the part of the BO, which I don’t find to be the case.

[chaserider]

This whole thread, and especially what Miss Motivation said, is why I just lease/just take lessons when I can.

Sure, I could afford to buy a horse. But can I afford to keep a horse? For a year, three years, for the life of the horse? I don’t know. I’m in my 60s and honing in on the end of my productive work career. Do I have any business getting a horse at this stage of my life? I don’t think so.

I can’t stand the thought of purchasing a horse then selling it along. As with my dogs, an owned horse would be a lifetime commitment.

No, it’s not the barn owner’s responsibility to keep board low to accommodate me. I’m just saying that eventually this WILL be a rich man’s hobby ONLY. The rest of us will fall away, boarding barns will close due to lack of business and strip malls and housing developments will extend from sea to shining sea.

[Gloria]

As folks turn to cities, they no longer understand how costly a farm can be. Ask any city dwellers how much they think to run water for several hundred feet, and they will tell you zip. Tell them that it cost more than 10K to build a semi OK outdoor arena, and they think you are a liar.

If they don’t understand the infrastructural cost, they won’t pay for it. They think the only cost associated with boarding a horse is the hay and feed. And that is why so many dream of owning a farm, and fantasize that it is cheaper to keep the horse at home than at a boarding stable.

I don’t have a solution for you, OP. I expect if you double your board, you will lose all boarders, and you will be saddled with astronomical mortgage payment. Those boarders will try to buy a farm, and regret later, but their regret will not help you financially now.

Running a boarding business really is a labor of love, and not a financially sound decision. If you no longer love to provide cheap or free labor for your boarders, you need to get out of that business before it is too later. Get an outside job, and board your horses. Let others have the headache.

[gumtree]

[QUOTE=BuddyRoo;8287456]
After reading the follow up posts and other comments, it seems like there’s a disconnect.

If you are going to have a business–not a hobby, but a business–there needs to be a business plan. In the case of the OP, it sounds like the business plan has to be re-engineered at this point with an eye towards actual costs and ways to reduce them.

A qualified financial planner/accountant would be a good resource as would some of the templates available online through the SBA or other similar small business orgs.

In my mind, personal living space and boarding of personal horses should be kept separate. So if the whole property is considered “the business”, the person living there should be paying rent–that’s income for the business. And those personal horses should be paying board–that’s income for the business.

Those personal expenses should not be simply absorbed into cost of doing business.

During the course of engineering a new business plan, learning more about the market in the area is imperative. Let’s pretend that 1k/mo is what the OP determines she actually needs to charge in order to cover the costs of doing business (including a salary for her). If that’s the case but other facilities are doing quite well at $400 mo with more amenities and nicer facilities, then the OP is screwed. There’s no market for her. Trying to limp along while going into the hole is not wise. Downsizing to just her own horses and getting a full time job might make a lot more sense.

Bottom line, there aren’t very many communities other than those near major metro areas that I’m aware of that are likely to keep a barn full at 1k/mo offering nothing but boarding. And there are barns doing quite well in the 400-600/mo range but they aren’t offering just boarding. They are offering training and lessons. They host shows. They have an active group of boarders–typically with a requirement of taking X number of lessons per month.[/QUOTE]

This is the second, third time people have been saying speak to a “financial planner”, accountant. Well that’s all well and good if you happen to have/know either that are WELL versed in the business of horses. MOST are not. Most do not have a clue. In business school a “widget” is a widget by and large. Horses and the business of which includes their owners do not fall under the standard definition of a “widget”.

SBA sorry but that is a bit of a joke. I paid dues to be a member of the SBA for a couple of years and the dues are not cheap. A totally worthless organization for the average horse operation.

People keep saying you need a better “business plan” and throwing out examples based the “norm” of how the average “widget shop” is set up and run. All well and good. But the average “widget shop” doesn’t have to compete with “weekend warriors”, hobby farm owners who take in a few horses to offset the expense of theirs and some of the expense of their “hobby”. They undercut the “market” because they have a fraction of the overhead. Let alone the expertise by and large. They are not paying commercial insurance rates, to the tune of $4-6,000+ that not protects their assets and horses also that of their boarders. One major mishap and they could possibly be wiped out for life. The boarder also. Because they are flying under the radar they do not have to pay commercial rates for utilities. In short they do NOT have numerous fixed costs that people who run a business, any business for that matter have.

I make really good Pizza as do a lot of people, basic startup costs of would not be that much if I set up in my house and only offered delivery. Buy a pizza oven for a few thousand, a big mixer, and get my kids or spouse to make deliveries with the family car.

But I would be shut down in a heat beat. Because there are rules and regs that don’t allow this without getting a zoning variance to run a business out of my house. Not going to happen. My “kitchen” would have to set up according to state rules and regs and Health Department rules and regs. NOT cheap and a lot of paper work. Several business licenses to be had. Sales tax collected, mandatory liability insurance, workman’s comp insurance if I hired the neighbor’s kid to make deliveries for me because my wife and kids would like to have a life also. Etc. Etc. Etc.

The vast majority of “mom & pop” boarding operations fly under the radar. Most properties are not zoned to offer commercial services. Take in one boarder and collect $1 and you are considered to be offering commercial series. The vast majority are able to fly under the radar because no “inspectors” enforcement officers dedicated to this area.

I am not saying that board needs to go to $1,000 per month for the average operation. But I know for fact that no operation is making much of a living charging $400-500 a month for board using “normal and excepted” business practices. I don’t care where it is located. I know what fixed cost are. They are pretty much the same by and large anywhere in the country.

No doubt that adding other profit centers will boast the bottom line. How much depends on what the operation has to offer. But these add even more to the “work load”. IME and talking with others in the business the rule of diminishing returns takes its toll after a few years. For the vast majority after a couple of years the “ends do not justify the means”.
In short it is hard to compete with those who do not value their time and quality of life. In a lot of ways it comes down to “last man standing”. Because anyone who opens a business knows that for a number of years it will take a lot of work and time to get established. They open full of enthusiasm and drive. But at some point in 4 to 5 years they will take step back and ask “is this worth it”? Most will say no and sell out. Someone else comes along and thinks, dreams they can do it better. The previous owner must have had a “failed” business plan.

“In my mind, personal living space and boarding of personal horses should be kept separate. So if the whole property is considered “the business”, the person living there should be paying rent–that’s income for the business. And those personal horses should be paying board–that’s income for the business.”

No this is the wrong way to go about it. For the majority of small horse business owners Just about any accountant will tell you way. They don’t have to understand the horse business either. Business 101

[skyon]

[QUOTE=Miss Motivation;8287571]

It seems that question was directed toward barn owners- perhaps? [/QUOTE]

No, actually I mean that question for the horse business in general, but it served best on a thread regarding board. Wouldn’t have noticed it if not for the demand to raise it everywhere. The horses I described were all part of system.

What triggered it is probably two questions. One, - If you offer board at $xxx you need to be straight forward about the amenities you offer, and not cross into offering beyond what you can’t afford (BO/BM, whatever).

Plenty of times I have seen people who received xxx when they could afford higher board want the same at lower board, get pushy about it and the BO/BM who tries to deliver this for those that squawk and, well, it usually ends badly.

However if you raise board to $1000 I think the amenties expected would increase to that standard at present as well.

My real question though, is that often horses get passed on according to their abilities. I have seen more than a few people begin on horses with limited ablites and sold/leased the animal. If average board becomes $1000 (which in reality is more like $1500 if lucky with other costs) - how is the horse business as a whole going to handle situations where people cannot keep that horse? Maybe it can be absorbed. I don’t know.

That may not seem like a breaking point for A type show expenses, but it may be for their horses if they are passed on. Not even discussing the lower level horses that get passed around and not quite the big money league.

There is always this idea that the last owner will be a beginner who miraculously love dobbin and retire him…somewhere. Not really quite fair to the last owner who may have needed a well trained horse but not the medical bills from a life of sport, and more than often the mounting bills catch up and can change that thought.

[bauhaus]

Gumtree, are you suggesting that all counties should have a government inspector driving around checking out properties to check for boarding activity and compliance with the law, along the lines of health inspectors in restaurants? That’s the only way I can imagine you’d weed out barn owners who don’t have insurance or who don’t adhere to whatever laws apply to boarding barns.

And don’t be too quick to assume that the backyard boarding farm isn’t insured or that the owner isn’t savvy. Just because it’s a tax write off, heavily subsidized by other income and can therefore charge less to attract boarders, doesn’t mean it isn’t compliant with the law.

[Gloria]

Gumtree isn’t suggesting to have inspectors running around. She is pointing out the current economical environment where backyard owners have an edge over “commercial” operations. The backyard owners already have “fixed” cost invested for their own horses. Any additional boarder is potentially additional income. They don’t need to run it like a viable business to make their operations viable.

[bauhaus]

[QUOTE=Gloria;8287732]
Gumtree isn’t suggesting to have inspectors running around. She is pointing out the current economical environment where backyard owners have an edge over “commercial” operations. The backyard owners already have “fixed” cost invested for their own horses. Any additional boarder is potentially additional income. They don’t need to run it like a viable business to make their operations viable.[/QUOTE]

Yes I got that, however OP essentially is operating a backyard barn. She lives there as do her horses, I’d assume she qualified to buy it based on her off farm job she used to have. She is the one who changed the rules in this instance by quitting that job.

Gumtree lost me at her comment that no barn - anywhere - is making it charging $400-$500 a month. There is literally no way anyone could make that claim unless they’ve traveled the country doing audits of farm books from coast to coast.

[TrotTrotPumpkn]

[QUOTE=Gloria;8287732]
Gumtree isn’t suggesting to have inspectors running around. She is pointing out the current economical environment where backyard owners have an edge over “commercial” operations. The backyard owners already have “fixed” cost invested for their own horses. Any additional boarder is potentially additional income. They don’t need to run it like a viable business to make their operations viable.[/QUOTE]

FYI, Ag land is ag land here (assuming you are far enough out of town) and they don’t care if you board or not, I don’t even think we have to have x acres per horse, it’s probably different there, but I’m in the Midwest, although not sure how close to the OP–but the restrictions may not be there.

Anyway, I think we can lament about the upper middle class ladies who have 200’ indoors and take on three boarders to cover their costs (honestly around here most of my friend’s private barns are much nicer than the commercial facilities), but that’s their perogative. If they don’t have insurance and get sued they are screwed.

BUT what is helpful is looking at what they can’t provide. Maybe they aren’t there 24x7, maybe they don’t have a professional animal based degree, or can’t give lessons. I think they key is to differentiate yourself. I’ve boarded in lots of different places and one thing I missed (horribly) when I was in a friend’s barn (or now at my place) was having an instructor. Do you teach? Do you have an instructor come weekly? I think instruction would differentiate a fancier barn that can charge more. This could lead to schooling shows. I know people who make good money hosting shows, which is a whole different thread.

Do you need more pasture boarders? More stalls? More land? Have you lookied into separating the business land from the house and lease the land to your business for tax and liability reasons? [No I’m not giving legal advice, but you could look at this with your attorney/CPA]. Are you the best kind of entity, since you do live on the property. Could you deduct more as a c-corp–although there are negatives too. Again, talk to someone qualified. I said this already, but to cash flow and hire help I figured about 35 stalls. You already have the infrastructure (ring) and tractor and other equipment I’m guessing–how could you grow and positively affect cash flow? OR are you better off reducing boarders and working off the farm part-time? Are you the optimum size?

Fordtraktor, I would board with you! That would be my dream situation. I think turnout is so much better for soundness.

FWIW, I didn’t WANT to buy my own place. I basically felt forced into it by location, the lack of safe facilities/feed situation and my desire to know I can retire horses if and when I need to.

[IPEsq]

The OP said she lives in the barn apartment consisting of one room (at least I hope I’m not mixing this up with another thread). In this case, it is rather hard to separate out the mortgage on her living space, but then again, the value of that living space isn’t worth much.

[Hinderella]

Very interesting thread. I live in Connecticut, not the midwest, so land prices and expenses are significantly higher. And field/pasture board is a thing of fantasy. For anyone with more than 4 horses the cost would be prohibitive.
But when I first started with horses, back in 1975, the cost for full board with dry lot turnout at the barn where I worked was $185/month. And there was no indoor, those only existed for show barns. Average income in 1975 was $8630/yr, so that board was 265 of pretax average earnings.
Now in my area full board is $700-900/month (not counting lessons, etc.). Average income in 2013 (last year I could document) was $44,900. 26% of that is…$972.
So using those admitted rough figures, the cost of full board has remained more or less static, even though the costs associated with boarding horses have climbed steadily.

[BuddyRoo]

A financial planner or accountant could surely help formulate a better business plan and help navigate the legal issues such as insurance which you’ve mentioned several times. And i wasn’t suggesting joining the SBA, rather…using the free online tools and guides to help formulate a solid business plan.

Further, if the owner of a facility wants to make it more cost effective yet bring in more money in a market that will not support 1000/mo board, they need to hire people to do the labor at a lower rate and get a “real” job that pays their living expenses.

I think we’ve established here that straight board is not a money maker if you want to take home a salary of 50 or 60k per year or more.

Who pays that to clean stalls, maintain facilities, etc? You can’t get a BM job for that rate even in very good markets. Basically, if you choose to make being a BO/BM your career, you can expect to make very little.

And while I certainly value experience and expertise, the fact of the matter is that it’s simply not a job that pays well. Kind of like teaching. If you want to get rich, you need to choose something else. It’s not for lack of providing a valuable skill or service…that’s not really how salary is determined because if it were, teachers would be making 6 figures.

[QUOTE=gumtree;8287699]
This is the second, third time people have been saying speak to a “financial planner”, accountant. Well that’s all well and good if you happen to have/know either that are WELL versed in the business of horses. MOST are not. Most do not have a clue. In business school a “widget” is a widget by and large. Horses and the business of which includes their owners do not fall under the standard definition of a “widget”.

SBA sorry but that is a bit of a joke. I paid dues to be a member of the SBA for a couple of years and the dues are not cheap. A totally worthless organization for the average horse operation.

People keep saying you need a better “business plan” and throwing out examples based the “norm” of how the average “widget shop” is set up and run. All well and good. But the average “widget shop” doesn’t have to compete with “weekend warriors”, hobby farm owners who take in a few horses to offset the expense of theirs and some of the expense of their “hobby”. They undercut the “market” because they have a fraction of the overhead. Let alone the expertise by and large. They are not paying commercial insurance rates, to the tune of $4-6,000+ that not protects their assets and horses also that of their boarders. One major mishap and they could possibly be wiped out for life. The boarder also. Because they are flying under the radar they do not have to pay commercial rates for utilities. In short they do NOT have numerous fixed costs that people who run a business, any business for that matter have.

I make really good Pizza as do a lot of people, basic startup costs of would not be that much if I set up in my house and only offered delivery. Buy a pizza oven for a few thousand, a big mixer, and get my kids or spouse to make deliveries with the family car.

But I would be shut down in a heat beat. Because there are rules and regs that don’t allow this without getting a zoning variance to run a business out of my house. Not going to happen. My “kitchen” would have to set up according to state rules and regs and Health Department rules and regs. NOT cheap and a lot of paper work. Several business licenses to be had. Sales tax collected, mandatory liability insurance, workman’s comp insurance if I hired the neighbor’s kid to make deliveries for me because my wife and kids would like to have a life also. Etc. Etc. Etc.

The vast majority of “mom & pop” boarding operations fly under the radar. Most properties are not zoned to offer commercial services. Take in one boarder and collect $1 and you are considered to be offering commercial series. The vast majority are able to fly under the radar because no “inspectors” enforcement officers dedicated to this area.

I am not saying that board needs to go to $1,000 per month for the average operation. But I know for fact that no operation is making much of a living charging $400-500 a month for board using “normal and excepted” business practices. I don’t care where it is located. I know what fixed cost are. They are pretty much the same by and large anywhere in the country.

No doubt that adding other profit centers will boast the bottom line. How much depends on what the operation has to offer. But these add even more to the “work load”. IME and talking with others in the business the rule of diminishing returns takes its toll after a few years. For the vast majority after a couple of years the “ends do not justify the means”.
In short it is hard to compete with those who do not value their time and quality of life. In a lot of ways it comes down to “last man standing”. Because anyone who opens a business knows that for a number of years it will take a lot of work and time to get established. They open full of enthusiasm and drive. But at some point in 4 to 5 years they will take step back and ask “is this worth it”? Most will say no and sell out. Someone else comes along and thinks, dreams they can do it better. The previous owner must have had a “failed” business plan.

“In my mind, personal living space and boarding of personal horses should be kept separate. So if the whole property is considered “the business”, the person living there should be paying rent–that’s income for the business. And those personal horses should be paying board–that’s income for the business.”

No this is the wrong way to go about it. For the majority of small horse business owners Just about any accountant will tell you way. They don’t have to understand the horse business either. Business 101[/QUOTE]

[SMF11]

[QUOTE=fordtraktor;8287653]

Most people think “field board” is “hands off/minimal” like you assume but “premium field board with the best of everything and a reserved stall when needed” is another category that some savvy horse owners will pay for. I know when I kept my horse in DC I paid an above-market rate for a place like mine because the care was exceptional, the horses were out according to their needs and the feed was wonderful. That barn is always full too. Lots of good horse owners recognize the value in that model.[/QUOTE]

This is pretty much what I offer as well. I find my boarders are a pretty self-selecting group, with many being very knowledgeable (I currently have two professional trainers, and have had an equine veterinarian as boarders). Well, I also have some that know very little about horses too, it should be said. But real horsemen recognize what is best for horses and aren’t blinded by the chandeliers in the barn aisles. These boarders don’t leave over a small board increase either.

(Having said that, I’ve only raised board once in the 8 years I’ve been operating)

@Hinderella;8287893

Very interesting thread. I live in Connecticut, not the midwest, so land prices and expenses are significantly higher. And field/pasture board is a thing of fantasy. .

I’m two miles over the CT border, and pasture board IS very rare. I’m only aware of me and Lady Eboshi in our area.

So – this is a rambling way of agreeing with the above posters. I think it is key to find a niche and focus on that. I offer pasture board because I can, and because it is rare here. I board retirees, again, a nice niche. So that would be my advice for the OP – see if you can’t find a niche (kids, adults, retirees, whatever).

That said, I’m also one of those “hobby farms” where I do not pay myself (though I DO have insurance!!).

[burnedout]

routine trailer maintenance?

What do you have checked and how often? I’ve moved to a new area and the place people recommend for maintenance asked me to write a “checklist” of things they want me to have them look at. To be honest, I’m not sure. The place I went to in my previous town never asked me, they just checked everything over as far as I know.

[kirbydog]

We run a beautiful boarding/training/lesson facility, about 40m SW of Chicago. Let me tell you, we will have a party the day we actually show a true profit!
We have about 45-50 horses here at any given time. 8 of them are lesson horses, 2 are sale horses, 2 are the owners private horses. So figuring high, we have about 38 horses paying board. We offer full service, but don’t require it, unless we are at a show.
Shavings cost $1900 a semi load, every 10 days. People are good now, but in the past, had no problem helping themselves.
Hay varies here. It averages around $4.25-.75 stacked, but have a drought, or heavy rain year, it can go over $10 a bale. Again, people seem to think it’s their right to just help themselves to more.
We have heated aisles, heat and a/c in the tack rooms, and are well lit. Without constant patroling by our staff ($3000 a week for 5 very professional, knowledgeable people)doors are left open and lights are left on.
A horse colics and needs meds? Nobody will mind if I use the farms Banamine! After all, that’s what it’s there for, right???
Horses eat wood like it’s a part of their normal diet. Liability insurance is expensive. Fuel is expensive. We drag our arenas daily, at least. Tractors break. A lot.
Need I go on?
If you want to board a horse at a quality, clean facility, staffed by people who care an know what the hell they are doing, you need to pay for it. Horses are expensive!
BTW, we are $775 regular board. We did not want to have a mess of ala carte services (boots, fly sheets, masks, etc) to make record keeping impossible. So we just have a flat rate, and don’t apologize for it