OK, now you're talking my language, Mrs Magoo.
And yes, economies of scale are exactly what I'm talking about. Wasn't sure how familiar you were with a production environment coming at it from a real estate background. Sounds like you've been around the block a few times.
The big commercial egg producers enjoy vertical integration as well as economies of scale. If you Google map Croton, Ohio and travel just south of there, you will see field after field surrounding some long buildings that are their cage batteries for the largest egg operation in the state. You and I don't have the advantage of being able to grow our own feed, so that costs out very differently for them than it does for us. Not only that, they can raise a surplus and sell it at a profit after their feed bins are full. I did something similar last November when the farmer was shelling out his corn and I offered to buy it from him right out of the field. So I got a 50 gallon barrel of whole corn delivered to my driveway for $20. Win-win. He didn't have to dry it, haul it to the mill, etc. and I got cheap whole corn that has lasted all winter. But that was about the extent of my integrating. The other thing the commercial operation does is save the corn stalks in bales and use it for bedding. So that helps them cut costs too.
Would love to hear what the turkey folks are saying. What group is that? Can you post a link. I'll be getting some turkeys from Porters just as soon as he hatches them out and ships them over.
And yes on the records. I haven't done that very well this year precisely because I'm not commercial and don't want to know how much I've lost, LOL. But with 2013, I will likely be turning over a new leaf since my tax situation has changed.
But it's nice to hear a business approach to the hobby. Good post.
rick
I have a Bachelor's of Business Administration and have owned/operated a small family construction company going on 18 years now. In my spare time I have both a decorative painting business and do the farm thing. I have also worked at a large machining facility where I was the lead quality inspector (oversaw 400 machine operators). So yes, I have been around the block several laps in my time.
As to the turkeys, we have a thread called Turkeys for 2013 here on BYC and on Facebook http://www.facebook.com/groups/161190843893888/
I find that a mistake a lot of people who want their farm or poultry business to stop bleeding red make is not looking at market saturation prior to entering the market and trying to compete. If 15 people in your area breed and raise Rosecomb RIR's....you probably want to get another heritage breed if you want to sell chicks. This is just an example.
However, I don't want to make people mad at us, so with that will drop the subject entirely. I truly didn't mean to offend anyone with any comments I have made. I was just throwing my two cents in and given how much that is worth lately...it may not be worth much.
So, now back to your regularly scheduled program.