Rethinking the Horse
Business 2014

How the Economy, the Horse
Industry and the Internet Are
Affecting Horse Professionals
Tonight’s Speaker
Elisabeth McMillan

Editor and Founder of Equestrian Professional.com

Copyright 2014 Equestrian Profess...
Outline for Tonight
• Overview of Economic Outlook and Indicators
• Key Horse Industry Issues
• Results from our survey of...
Mainstream Economic
Indicators
•
•
•
•

Banking
GDP
Real Estate
Stock Market

Copyright 2014 Equestrian Professional LLC a...
World Bank
•
•

•
•

•

•
•
•
•
•
•
•

The World Bank has raised its global growth forecasts as the easing of austerity po...
Global Conference Board
• C:UsersOwnerDesktopCanadaGDP.jpg
• C:UsersOwnerDesktopUSDP.jpg
Horse Industry Crackdowns
•
•
•
•
•
•

Equine Health
Wellbeing
Transport
Transparency
Sales Tax
Labor

Copyright 2014 Eque...
US Legislation & Regulations

Prevent All Soring Tactics Act of 2013
The Horse Protection Act (HPA) was enacted into law i...
State Laws
• Jess Jackson Memorial
• CDL
• Sales Tax

Copyright 2014 Equestrian Professional LLC all rights reserved
UK – Horse Welfare
Advancing Equine Scientific Excellence (AESE)
An established initiative between the British Equestrian ...
Canada Horse Welfare
•

New Code of Practice for the Care and Handling of Equines sets progressive standard of care for th...
Horse Sales - PSI
YEAR

# of Horses Average

Total

2011

47

271,304
EURO

12,700,000
EURO

2012

45

346,222
EURO

15,58...
Horse Sales - Reining
YEAR

# of Horses Average
Sold

Total

2011

58

$29,761

$2,291,600

2012

57

$27,882

$1,589,300
...
Keeneland Sales Summary
January, April, September, November
Horses of All Ages Two–Year–Olds Yearlings Breeding Stock
2012...
AQHA World Show
YEAR

# of Horses Average

Total

2011

183

$4,690

$858,350

2012

79

$8387.97

$662,650

2013

70

$7,...
Growth, Decline or Same
2012 vs 2013 - SURVEY
Over all growth of business. Did your horse
business grow, decline or stay the same?
Increased

Decr...
2011 vs 2012 - SURVEY
Over all growth of business. Did your horse
business grow, decline or stay the same?
Increased

Decr...
New Customers

Where are the majority of your new customers
coming from?
Social Media
Change in services
2013

2012

change in service.jpg

2010

2011
Wins and Losses

Copyright 2014 Equestrian Professional LLC all rights reserved
Profit or Loss
Adjustments
Opportunities
2012

2013

Change

Purchased
Land

16.4% 19.1%

2.7%

Purchased
Major
Equipment

20.8% 29.1%

8.3%

Purchas...
The Most Important Trends
•
•
•
•

Solopreneurs
Diversity
Mainstream Media
Customer Needs & Wants

Copyright 2014 Equestri...
Solopreneur
Diversity
1. Racing –Thoroughbred, Quarter Horse, Arab, Appaloosa, Standard bred
2. Sport and Performance Horses – Hunter/...
Pros and Cons
• More people involved
• A place for
everyone/every budget
• More horses have jobs
and homes (especially
the...
Embrace the Market

Photo courtesy Sheryl Sutherby
Copyright 2014 Equestrian Professional LLC all rights reserved
Solutions
•
•
•
•
•
•
•
•
•

Be informed, clear and accurate
Educate – Edu-tainment – Content Marketing
If you can’t say s...
Questions?

Thank you for Listening!
Join us for the Member’s
Session!
“Solving the Top 4 Horse Business
Challenges”
1.
2.
3.
4.

Clients - Leadership, loyalty...
Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals
Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals
Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals
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Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals

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“Rethinking the Horse Business 2014” examines how the economy, the horse industry, and the Internet are affecting horse business owners.
For the past four years, EquestrianProfessional.com has been asking horse business owners how they view the industry and what changes they are seeing in their own businesses. This year, over 600 horse professionals shared their insights by taking part in our annual horse industry survey. This survey provides fascinating results each year. Additionally, it enables us to provide webinar attendees with the opportunity to learn from four years of analogous data specific to horse professionals.

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  • but the horse world is HUGE so …bear that in mind And please feel free to send us … Geographical – i.e. areas affected by weather, wild fires etc..
    USA BASED _ members and survey participants reflect this -
  • History of Rethinking the horse business. Annual event - We’ve been hosting for 4 years - Purpose is to provide horse professionals – meaning those who make their living -- horse trainers, breeders, instructors, professional riders and stable managers with relevant information to help you better navigate the current business climate and achieve your career goals. We realize everyone’s business is unique so this seminar is to a wide variety of perspectives and with a big picture view of what is going on in and around horse businesses . In order to prepare for this event we speak to dozens of horse industry leaders and then condense hours of conversations, emails and hundreds survey results into a 30 – 40 minute presentation and leave time for questions -
  • World Bank raises forecast for global economic growth to 3.2 per cent in 2014
    Free trade bill
  • Following the announcement of the closure of the National Equine Database in September 2012, UK
    passport issuing organisations, welfare charities, local authority enforcers, organisations set up to
    trace and locate equines as well as members of the public have been emphatic in their need for a
    new central system, which is pivotal to a robust equine passport system.
  • George Morris, Frank Chapot, Paul Schockemohle – 1980 discussion at World Cup Finale
  • The 2013 NCHA Futurity Sales averaged $21,323, just $47.00 shy of the all-time record of $21,370 set in 2006. Net sales for the 618 lots that sold was $13,177,650; 82 percent of the 811 lots offered were sold.
  • Gross receipts for the four-day January Sale, held Jan. 6-9, totaled $41,025,700 for 1,027 horses. The average price was $39,947, and the median price was $20,000.
    At last year’s sale, which covered five days, 1,105 horses sold for $45,207,300, for an average of $40,912 and a median of $15,000. The 2013 sale included the complete dispersal of prominent owner/breeder Issam Fares’ Fares Farm.
    “The January Sale confirmed what we saw during last fall’s September Yearling and November Breeding Stock sales: that we are operating in a fair market,” Keeneland Vice President of Sales Walt Robertson said. “Buyers are responding to this true market with enthusiasm and confidence that they will see a return on their investments.”
    Evidence of the strong volume of trade was confirmed by a clearance rate of 80 percent. That trend began with the September Yearling Sale, the industry’s acknowledged barometer of its health, and continued through the November Breeding Stock Sale when clearance rates were 80 percent and 85 percent, respectively.
  • Over all growth of business. Did your horse business grow, decline or stay the same. - Lets look at where that growth took place
  • Over all growth of business. Did your horse business grow, decline or stay the same. - Lets look at where that growth took place
  • Where are the majority of your new customers coming from? Social Media – 25% using it - plus over 55% said it resulted in new customers , Word of Mouth, Print Ads, Online Ads, Referrals form other Professionals – slight decreases
    Overall stayed the same – Word of mouth 74 – 79% All types of advertising (print and online down about 3%.) Biggest change – Social Media – Increase of 6.9%
  • The challenging part of this story ---- is Last year we saw growth but an atypical decrease in profits - increase in expenses – decrease in the higher profit margin activities – NOW REALIZE THIS isn’t necessarily YOUR business -
  • POSITIVE INCLUDING HORSE PURCHASES
  • Professional Association of Therapeutic Horsemanship International (PATH Intl.), formerly
    NARHA, was formed in 1969 to promote equine-assisted activities and therapies for individuals
    with special needs. At more than 800 member centers, a total of 42,000 children and adults
    find a sense of independence through involvement with horses. These member centers range
    from small, one-person programs to large operations with several certified instructors and
    licensed therapists. In addition to therapeutic equitation, a center may offer any number of
    equine-assisted activities including hippotherapy, equine-facilitated mental health, driving,
    interactive vaulting, trail riding, competition, ground work or stable management. Through a
    wide variety of educational resources, the association helps individuals start and maintain
    successful equine-assisted activities and therapies for individuals with special needs. There
    are more than 24,000 volunteers, 2,000 instructors, 5,700 therapy horses and thousands of
    contributors from all over the world helping people at PATH Intl. centers
  • Mainstream Media – Misguided public with strong opinions – more critisicm than complement
  • Rethinking the Horse Business 2014 - How the Economy, the Horse Industry and the Internet are Affecting Horse Professionals

    1. 1. Rethinking the Horse Business 2014 How the Economy, the Horse Industry and the Internet Are Affecting Horse Professionals
    2. 2. Tonight’s Speaker Elisabeth McMillan Editor and Founder of Equestrian Professional.com Copyright 2014 Equestrian Professional LLC all rights reserved
    3. 3. Outline for Tonight • Overview of Economic Outlook and Indicators • Key Horse Industry Issues • Results from our survey of horse professionals • Horse Business Trends and Industry Shifts • Horse Business Strategies for 2014 Copyright 2014 Equestrian Professional LLC all rights reserved
    4. 4. Mainstream Economic Indicators • • • • Banking GDP Real Estate Stock Market Copyright 2014 Equestrian Professional LLC all rights reserved
    5. 5. World Bank • • • • • • • • • • • • The World Bank has raised its global growth forecasts as the easing of austerity policies in advanced economies supports their recovery, boosting prospects for developing markets' exports. The Washington-based lender sees the world economy expanding 3.2 per cent this year, compared with a June projection of 3 per cent and up from its 2.4 per cent estimate of growth last year. The forecast for the richest nations was raised to 2.2 per cent from 2 per cent. Part of the increase reflects improvement in the 18-country euro area, while the US is forecast to perform better than its developed peers, growing twice as fast as Japan. The report indicates a near-doubling of the growth in world trade this year from 2012, as developed economies lift exportreliant emerging nations. At the same time, the withdrawal of monetary stimulus in the United States may raise market interest rates, hurting poorer countries as investors return to assets such as Treasuries, the bank said. "This strengthening of output among high-income countries marks a significant shift from recent years when developing countries alone pulled the global economy forward," the bank said in its Global Economic Prospects report. Import demand from the richest nations "should help compensate for the inevitable tightening of global financial conditions that will arise as monetary policy in high-income economies is normalised". The bank's forecasts hinge on the orderly unwinding of US Federal Reserve stimulus, which is starting this month with the trimming of monthly bond purchases to US$75 billion from US$85 billion. If investors react abruptly in coming months, as they did in May when the central bank mentioned the possibility of tapering, capital inflows to developing economies could drop again, the report said. "To date, the gradual withdrawal of quantitative easing has gone smoothly," Andrew Burns, the report's lead author, said. "If interest rates rise too rapidly, capital flows to developing countries could fall by 50 per cent or more for several months potentially provoking a crisis in some of the more vulnerable economies." The bank sees a global expansion of 3.4 per cent next year, compared with the 3.3 per cent predicted in June. The 2014 forecast for developing markets was cut to 5.3 percent from 5.6 percent. The bank lowered its forecast for China this year to 7.7 per cent from 8 per cent, saying the world's second-largest economy was shifting "to slower but more sustainable consumption-led growth." In the US, where growth is seen accelerating to 2.8 per cent this year, unchanged from the outlook in June, the recent budget compromise in Congress will ease spending cuts previously in place and boost confidence from households and businesses, the bank said. The 2014 forecast for developing markets was cut to 5.3 percent from 5.6 percent. It raised its prediction for the euro region to 1.1 per cent for this year from 0.9 per cent in June as the monetary union comes out of it debt crisis, propelled by Germany and showing improvement in fragile economies including Spain and Italy. "The euro area is where the US was a year and a half or two years ago, where growth is starting to go positive," Burns said. http://www.scmp.com/business/economy/article/1406114/world-bank-raises-forecast-global-economic-growth-32-cent-2014
    6. 6. Global Conference Board
    7. 7. • C:UsersOwnerDesktopCanadaGDP.jpg
    8. 8. • C:UsersOwnerDesktopUSDP.jpg
    9. 9. Horse Industry Crackdowns • • • • • • Equine Health Wellbeing Transport Transparency Sales Tax Labor Copyright 2014 Equestrian Professional LLC all rights reserved
    10. 10. US Legislation & Regulations Prevent All Soring Tactics Act of 2013 The Horse Protection Act (HPA) was enacted into law in 1971. It has been enforced by the U.S. Department of Agriculture (USDA) for over forty years. USDA deems soring to involve the use of action devices, chemicals, cuts, burns, pads, wedges or practices like trimming a horse’s hoof to expose sensitive tissue, so that it causes pain in the horse’s forelegs and produces an accentuated show gait for competition or sale. Read More The Border Security, Economic Opportunity, and Immigration Modernization Act o Comprehensive immigration reform has been a priority of the horse industry for many years. The difficulty horse farms, horse shows, trainers and others have had recruiting American workers has forced many to rely on foreign workers and utilize both the H-2B and H-2A temporary foreign worker programs to meet their labor needs. However, the current system is not reliable and is extremely burdensome to use. Read More USDA http://www.aphis.usda.gov/publications/animal_health/2011/bro_keep_horses_healthy.pd
    11. 11. State Laws • Jess Jackson Memorial • CDL • Sales Tax Copyright 2014 Equestrian Professional LLC all rights reserved
    12. 12. UK – Horse Welfare Advancing Equine Scientific Excellence (AESE) An established initiative between the British Equestrian Federation (BEF) and the British Society of Animal Science (BSAS) is set to revolutionise the way in which the horse industry integrates with academic establishments. This innovation, called Advancing Equine Scientific Excellence (AESE), is now live and has held three regional Roadshows during 2011 and 2012. Further Roadshows will be rolled out across the country over the next few years and information about these events will feature on this page. Supported by training provided for lecturers, tutors and researchers at the Roadshows, students on both equine and non equine related courses will be able to collaborate to carry out research projects which the horse industry needs. Facilitated by the Roadshows, which will have a focus on study design and statistical analysis, there is scope for some large scale projects to be undertaken which will help to inform the horse industry and provide fruitful research projects for students to undertake. At a meeting on 22 May the Equine Sector Council steering group presented the key outcomes from the case studies to Lord de Mauley (Parliamentary Under Secretary of State for Resource Management, the Local Environment and Environmental Science) and Defra officials whilst they explored how the equine passports system might be improved in the short and longer term. Copyright 2014 Equestrian Professional LLC all rights reserved
    13. 13. Canada Horse Welfare • New Code of Practice for the Care and Handling of Equines sets progressive standard of care for the Canadian equine herd| Print |Ottawa, ON, 27 June 2013 – Equine Canada (EC) and the National Farm Animal Care Council (NFACC) are pleased to announce the release of the new Code of Practice for the Care and Handling of Equines. The Code is available for download here.“The development of this new Code is perhaps the most important project in recent Canadian history for the health and welfare of equines in Canada,” states Jack de Wit, Director with the Equine Canada Board of Directors and Chair of the Code Development Committee. “This is a Code of Practice we can all be proud to have. It is among the most comprehensive of equine Codes internationally, and will serve a vital role across our diverse industry.”The Code’s development was led by an 18-person Code committee comprised of equine owners, caregivers, animal welfare and enforcement representatives, researchers, veterinarians and government representatives. Aiding in their work was a fiveperson Scientific Committee that included researchers with expertise in equine behaviour, health and welfare. “I am very pleased with the high standards of care required for horses in the new Equine Code,” states Dr. Bettina Bobsien of the BC SPCA, who represented the Canadian Federation of Humane Societies on the Code Development Committee. “It is also encouraging to see this Code mandate ethical training methods, exercise requirements and restrictions on tail alterations.” Canada’s Codes of Practice are a powerful tool for meeting rising consumer, marketplace and societal expectations relative to farm animal welfare. Codes support responsible animal care practices and keep everyone involved in farm animal care and handling on the same page. They are our national understanding of animal care requirements and recommended practices, providing a foundation for animal care assessment programs and in some provinces, regulatory activities. The equine Code is the third of eight farm animal Codes of Practice currently under revision to be completed through the NFACC Code development process. More information on the Code development process is available at www.nfacc.ca/codes-of-practice. Copyright 2014 Equestrian Professional LLC all rights reserved
    14. 14. Horse Sales - PSI YEAR # of Horses Average Total 2011 47 271,304 EURO 12,700,000 EURO 2012 45 346,222 EURO 15,580,000 EURO 2013 48 275,041 EURO 12,752,000 EURO Performance Sales International Website Copyright 2014 Equestrian Professional LLC all rights reserved
    15. 15. Horse Sales - Reining YEAR # of Horses Average Sold Total 2011 58 $29,761 $2,291,600 2012 57 $27,882 $1,589,300 2013 37 $42,119 $1,558,400 Western Blood Stock LTD and NRHA website Copyright 2014 Equestrian Professional LLC all rights reserved
    16. 16. Keeneland Sales Summary January, April, September, November Horses of All Ages Two–Year–Olds Yearlings Breeding Stock 2012 Gross $410,553,000 Lots* 5,992 2011 Gross $468,813,350 Lots* 6,566 2010 Gross $381,558,900 Lots* 7,041 2009 Gross $396,216,000 Lots* 7,342 2008 Gross $600,296,400 Lots* 8,194 2007 Gross $815,401,000 Lots* 9,124 (source: Keeneland Website)
    17. 17. AQHA World Show YEAR # of Horses Average Total 2011 183 $4,690 $858,350 2012 79 $8387.97 $662,650 2013 70 $7,408.87 $459,350 AQHA World Show and McCarron Equine Blog Copyright 2014 Equestrian Professional LLC all rights reserved
    18. 18. Growth, Decline or Same
    19. 19. 2012 vs 2013 - SURVEY Over all growth of business. Did your horse business grow, decline or stay the same? Increased Decreased Stayed the same 2012 38.6% 26.3% 36.1% 2013 39.6% 27.4 % 33.6% Change 1% 1.1% - 2.5 % Copyright 2014 Equestrian Professional LLC all rights reserved
    20. 20. 2011 vs 2012 - SURVEY Over all growth of business. Did your horse business grow, decline or stay the same? Increased Decreased Stayed the same 2011 34.5% 31.7% 34.5% 2012 38.6% 26.3% 36.1% Change 4.1% 5.4% 1.6% Copyright 2014 Equestrian Professional LLC all rights reserved
    21. 21. New Customers Where are the majority of your new customers coming from?
    22. 22. Social Media
    23. 23. Change in services 2013 2012 change in service.jpg 2010 2011
    24. 24. Wins and Losses Copyright 2014 Equestrian Professional LLC all rights reserved
    25. 25. Profit or Loss
    26. 26. Adjustments
    27. 27. Opportunities 2012 2013 Change Purchased Land 16.4% 19.1% 2.7% Purchased Major Equipment 20.8% 29.1% 8.3% Purchased Horses 71% - 2.9% 68.1% Refinanced 17.1% 18.7% Major Loans 1.6 % Copyright 2014 Equestrian Professional LLC all rights reserved
    28. 28. The Most Important Trends • • • • Solopreneurs Diversity Mainstream Media Customer Needs & Wants Copyright 2014 Equestrian Professional LLC all rights reserved
    29. 29. Solopreneur
    30. 30. Diversity 1. Racing –Thoroughbred, Quarter Horse, Arab, Appaloosa, Standard bred 2. Sport and Performance Horses – Hunter/Jumper, Dressage, Eventing, Cutting, Reining, Driving, Endurance, Polo, some breeds i.e. Saddlebred. 3. Breed Shows – APHA, AQHA, Arabian, Appaloosa, Palomino, Pinto, Pre, Friesian 4. Instructor Based –– CHA, ARIA, ARIA Newbie - Mixed Lessons, Trail and Camps 5. Therapeutic – PATH, CHA, Wounded Warriors, Teambuilding and Leadership 6. Pleasure/Competition - ACTHA, 7. Games - Mounted Games, Cowboy Mounted Shooting, Horse Ball, Polo 8. Spectator Sports – Rodeo, Natural Horsemanship Clinics, Rode to the Horse, Mustang Make-over, Polo. 9. Do-it-Yourself – Natural Horsemanship 10. Horse Rescues 11. Collegiate- Equine Studies and Sports Teams Copyright 2014 Equestrian Professional LLC all rights reserved
    31. 31. Pros and Cons • More people involved • A place for everyone/every budget • More horses have jobs and homes (especially the “backyard” horse • Clients may get more instruction regarding the care and handling of horses • Horse have become more mainstream • • • • • • • • • Client indoctrination Amateur vs. Expert Communication Confusion Societal Misconception The cruelty card One speaks for all The Silo effect The only “good apple” amongst a bushel of “bad apples”
    32. 32. Embrace the Market Photo courtesy Sheryl Sutherby Copyright 2014 Equestrian Professional LLC all rights reserved
    33. 33. Solutions • • • • • • • • • Be informed, clear and accurate Educate – Edu-tainment – Content Marketing If you can’t say something nice? Market to current clients – the real sales cycle Create two marketing packs – one for newbies one for current clients Have a clear value proposition – for every product and service Stay in tune with your clients needs, wants and goals. Keep your side of the street clean – beyond reproach Give back to your associations and supporters Copyright 2014 Equestrian Professional LLC all rights reserved
    34. 34. Questions? Thank you for Listening!
    35. 35. Join us for the Member’s Session! “Solving the Top 4 Horse Business Challenges” 1. 2. 3. 4. Clients - Leadership, loyalty and getting paid Financial – Increasing profits Sales – Turning leads into sales Reaching career goals – With the support of your clients and team. Thank you for Listening!

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