A Bid Ticket, or a Sale Barn Ticket, is a calculator and graph of the maximum bid amount for each weight.
The first information to enter is the known information. We know what we have in inventory that can be sold, or we know what we have just sold.
The basis for the chart is the known information. You know what you have to sell, or have just sold.
Cost of Gain – This is what it costs for you to put on a pound of weight gain. These costs can include feed, yardage, interest, medicine, death loss, freight, etc.
Fixed Costs – This is for costs that do not scale with the total weight difference. These costs can include medicine, death loss, etc.
Tip! Remember that profit is a cost.
The chart depicts the Bid Threshold, or maximum bid, for each weight and class of cattle.
Each point on the chart will also give you some quick information on the bid price.
Min Weight – The minimum weight range of considered replacements.
Max Weight – The maximum weight range of considered replacements.
Weight Inc – The amount to increment, or step, between the minimum and maximum weight range.
Pay for Increase – If selected, for weights larger than the Sell Weight, the Bid Threshold will continue to use the same Value of Gain and Fixed Costs. This will require you to pay for this increased amount of gain.
If not selected, for weights larger than the Sell Weight, the Bid Threshold will use the amount in the Pay for Gain.
Pay for Gain – If Pay for Increase is not selected, the Bid Threshold will use this amount to calculate for weights over the Sell Weight. When Pay for Gain is set to zero, the net purchase cost for weights over the Sell Weight will equal the net Sell Total minus Fixed Cost. When Pay for Gain is below zero the net purchase cost for weights over the Sell Weight will be less than the net Sell Total minus Fixed Cost.
Legend – The colors on the Bid Threshold chart can be selected here, or hidden. A line can also be deleted.
Class – The name of the class can be set here.
Base Price – This will give you the Base Price relative to the Sell Price, at the Sell Weight value. With the adjustment of the Sell Price all of the classes in the Bid Ticket will be adjusted according to their respective basis.
Value of Gain – This will give you the Base Value relative to the Cost of Gain. With the adjustment of the Cost of Gain all of the classes in the Bid Ticket will be adjusted according to their respective basis.
Add a Fixed Cost per head into the trade between the Sell Market and Replacement Market.
Tip! Don’t forget that profit is an expense in a trade.
Your current Cost of Gain.
Tip! Don’t forget to add in a profit to the Cost of Gain.