The easiest money you will ever make is the money you DON’T spend. Ben Franklin once said, “A penny saved is a penny earned.” Folks, this is as true today as it ever was – and it applies to every $100, $1000 and $10,000 you DON’T spend.
Guess what? This income is tax-free. You DON’T have to pay income taxes on the money you DON’T spend! That increases its value by another 20 to 40 percent. Therefore, every $1000 you don’t spend is equal to $1200 to $1400.
This simple truth applies to ALL people from ALL walks of life. The easiest money you will ever make is the money you DON’T spend. However, since most of our 15,000 subscribers are cow-calf producers, I want to spend a little time discussing this from their point of view.
Most cow-calf producers believe it is impossible to substantially reduce and/or eliminate expenses. This is because they are locked into an outdated paradigm that will eventually put them out of business if they’re not careful. Once they make a paradigm shift, however, it will be relatively easy to substantially reduce and/or eliminate expenses.
Most expenses are based on fossil fuel energy. Long-term success in this business will require a transition from expensive fossil fuel energy to free solar energy. Winter feeding is almost always the biggest expense for cow-calf producers. With the right size and type of cows and with proper grazing management, most winter feeding can be eliminated. Working with nature will also reduce and eliminate expenses.
Many PCC® Customers have a cost of production that is half what the national average is. This will allow them to continue to be profitable even when cattle prices bottom out. If you don’t think we will see lower prices again, you better WAKE UP and smell the coffee. The last time we were receiving record-high prices for our calves, prices dropped by 50% in one year. OUCH!
Today’s beef industry is not the same as it was 25 years ago. The cost of fossil fuel-based inputs has doubled in the last 25 years! That’s right, DOUBLED!
When cattle prices break, what will happen to the cost of inputs? Nothing! While cattle prices continue to go up and down, up and down, up and down, the cost of inputs will continue to go up, up, up. I’m afraid many cow-calf producers will not survive the upcoming fall in calf prices if they don’t make some changes in their operation. Those who don’t plan to make any changes should sell out NOW – at the top of the market!
The easiest money you will ever make is the money you DON’T spend. Pharo Cattle Company® has the genetics and the philosophies you need to produce MORE for LESS. That’s the new key to long-term success in this business! Let us know when you are ready to start making the necessary changes in your operation.
Quote Worth Re-Quoting
“Increased profit in ranching has little to do with bigger animals and new technologies. It has a lot to do with high cattle prices! When cattle prices fall, it will be the low-cost producers who remain profitable.” ~ Dave Pratt