This is an archived Horseadvice.com Discussion. The parent article and menus are available on the navigation menu below:
HorseAdvice.com » Equine Business and Law » Business Discussions »
  Discussion on Selling horses
Author Message
Member:
scrupi1

Posted on Sunday, Mar 8, 2009 - 8:44 am:

I am wondering how to handle my situation. I have a horse in training, he has been at the trainers for 1 month, I pay training and board. I have been advertising him on the internet and a potential buyer contacted me to come out and see the horse. The trainer showed the horse, I groomed and clipped him before hand and was there during the showing process but she rode the horse and participated in holding him during the vet exam. We did not talk about fees before hand (my mistake) but now she is suggesting that she should get 10% commission on the sale. I would agree if she had found the client and was doing the marketing but she was not. If I knew that she was going to charge 10% and she had told me before I brought him in for training than I would have adjusted the price accordingly. I am just wondering what I should do now and how I should handle it. Does anyone have any advice?
Member:
hollyw

Posted on Sunday, Mar 8, 2009 - 9:36 am:

What is it worth to you to have the trainer be present with you and "to show" the horse to potential buyers?
If it's worth 10% of the purchase price, then you are all set. If not, then just be open about the miscommunication and see if you can negotiate a reasonable amount.
The market seems "down" here . . . and someone who came to look at a boarder's horse yesterday (Hey . . . I didn't even think of charging extra for my time . . .lol . . . not much of a business person, am I?) told me that he was at a horse auction last week, and a truckload of yearling QH were brought in . . . and went for $22 a piece . . . So . . . if you can sell in this market, that is WONDERFUL!!! and might be worth 10% to the trainer.
Member:
jhyrick

Posted on Sunday, Mar 8, 2009 - 10:55 am:

This seems to be a situation unique to the horse industry. Most trainers will tell you that they don't make enough on training and board alone to support their business, but count on show fees and commissions to supplement their income. It's unfortunate this was not discussed or presented in a contract beforehand. BTW - 10% is very low. I've paid 15-20% depending on how many buyer/seller agents were involved. Commission seems generally assumed in the horse business.

I would evaluate the situation in terms of how much was spent by you in advertising and promotional expenses. If you feel as if you may use this trainer again in the future, I'd deduct the advertising expense off of the purchase price and pay a 10% commission on the net amount, and possibly write in for a month's training credit toward another horse in the future.

There is a good chance that the reason actually sold was due to the environment of the horse being at a trainers (Esp. if the trainer has a good reputation).

If you are a business, the commission is a business expense and would be documented as such. If you are a hobby farm owner, then of course it is not, but nor due you have to claim the income.
Member:
ekaufman

Posted on Sunday, Mar 8, 2009 - 12:48 pm:

The horse business is funny-- so much communication about the horse and so little about the business among the professionals or the clients.

I agree that 10% is pretty reasonable. Your trainer is a professional, not a buddy doing you a favor, and should be compensated for the extra service.

As a professional, the trainer should have been explicit up front about commission on sale, but as a customer, you also would have benefited by asking some questions about what was included in the training fee, and what was going to cost extra. Commission for trainers has been the rule everywhere I've lived, and while you can always argue the benefits in hindsight on any given transaction, the same is true of every commission sales environment. The trainer surely assumed you knew she wasn't working for free, just as you assumed she'd tell you in advance about extra charges.

I'd pay the 10%, thank the trainer, and point out that you would have greatly appreciated knowing the fee structure in advance, so as not to be surprised post-sale.
Member:
scrupi1

Posted on Sunday, Mar 8, 2009 - 10:25 pm:

Thanks everyone for your feedback. The trainer is very good and very nice so I will definitely give the 10% commission. I have never sold a horse through a trainer before so was not quite expecting the expense but can see why it is justified. Thank you!!
Home Page | Top of Page | Join Us!
Horseadvice.com is a BBB Accredited Business. Click for the BBB Business Review of this Horse Training in Stokesdale NC