To face the headwinds in Farming and Agriculture, I am sure you have heard us talk about the importance of having the right business model.
Those with a robust business model will see through challenging periods in Ag.
In this blog, I wanted to share a post about how Farm Tender tweaked the model of their least-performing category – Livestock.
This is an excellent example of how strategic thinking can improve a business.
Farm Tender has had success over the years selling Machinery, Grain, Hay, Trucks, Utes, Livestock Equipment, Fertiliser and Chemicals through their online marketplace. But Livestock has been a gross underperformer.
They knew why it wasn’t working, but they thought it would turn around if they just kept at it.
The problem was they were competing with Agents. With the new model, they are enhancing what they do. They are giving extra options and opportunities to sell for their clients.
When Farm Tender Founder, Dwain, says they ‘tweaked’ the model, it’s actually a bit more dramatic than that.
They have, in fact, done a complete 180 and flipped it on its head. To go from charging the seller if they sold, to not charging the seller at all, completely free. They now pass on some of the cost to the buyer if they buy and use a fixed rate per head. You can See the fees here.
They have even given the new category a name, “Zero Commission Livestock Selling.”
The result has been a dramatic lift in Livestock listings. This was the first thing they wanted to achieve. And not only have they increased the listings but also the quality of the listings—larger numbers of commercial stock.
But it’s only a start.
So, when they have better quality listings and more of them, it means buyers will start taking them more seriously as a spot to purchase. It’s the classic marketplace dilemma. For buyers to come, you need sellers to list.
Tweaking the business model for their Livestock category is starting to work for them, even though it’s only early days.
It’s a great example of how changing how you run your business can have a huge impact. And this is what we mean: ‘your greatest success is just 3 degrees above or below where you are currently looking.’
If you have some Livestock to sell, consider using Farm Tender as a selling option or tell your Agent.