Pricing Model - Page 1

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MVF

by MVF on 11 February 2009 - 02:02

I wonder if we could put together some rules of thumb for pricing.  I know well that there are MANY intangibles involved, but I also know as an economist that there is a baseline price model that could be constructed with the following variables: 1) working titles and levels of competition (e.g. NASS, BSP) ; 2) show rating; 3)age (future breeding value); 4) gender; 5) other factors, including the basics (hip, elbows, etc.)

I would be happy to do the data analysis if people wanted to report (publicly or privately -- PM me) with ACTUAL (not asking) prices and the basic info on each dog.

OF COURSE, the model is only PARTLY explanatory -- there may be special values that are idiosyncratic (great supportive breeder, famous name kennel or lines, or match-up with one's current lines) or market-wide (recent Sieger or BSP out of that kennel, for example).   But it could provide a baseline that could be helpful to the "market" for good dogs (and it might help "crowd out" unscrupulous folks charging thousands for untitled dogs without hip certifications, etc. In fact, if the model showed that young untitled dogs without health clearances have little breeding value it might do some social good.)

The results of the model would be something of the form:

Value = coeficient1 * workingtitles + coefficient2*showtitles + ... etc.

You would then plug in the specific details on a dog and get a baseline value.

For example, it may show that a SchH1 a-normal SG bitch with one breeding who is otherwise average in this class is worth $3500 (I'm guessing now, the model would not guess).  You could then bargain from that baseline based on special factors, but it would make the market more rational and fair.

Any ideas about how this should be done -- or data -- should be sent my way.

I am on medical leave with cancer and I need to put my research skills to some decent use to feel okay.  So burden me if you like!  I did this for my track and field community and my model predicted pretty well how athletes would.should do as they transitioned from one event to another.


by SitasMom on 11 February 2009 - 03:02

You might want to add from where the dog or puppy is coming from as part of your equation.......and the value of currency between the two countries.

jletcher18

by jletcher18 on 11 February 2009 - 03:02

mvf, sorry to hear about your condition.  hope all is going well and wish you a fast and full recovery.

some things  that i have noticed in the dog market.
1- who you are.  seems the more well known a person is (speaking of the schutzhund world here) that people are able to get higher prices for their dogs/puppies.   a couple of years ago i was looking for a breeding female.  i found the same female advertised on 3 websites.  the dog was still in germany.  prices ranged from 4000 upto 7500.  for the same dog. 

2- market area.  i have also noticed that dogs being sold on either coast of the US are priced higher than were i am in the midwest.  more so with pups than older dogs.

3- newbies who dont know any better and still look for high prices, for lesser quality dogs.

4-  marketing,,,,,  some people can sell, some cant,

I hope you get some good response.  i would like to see the results.  have you thought about adding in stud dog prices?   i found a recent add for an untitled male, 1 year old for 1000 dollars!   hell, i can find sch3, kkl1, v rated, for that price.

will have to get back to you about prices, as my wife does the business end. 

john


by gsdgermany2 on 11 February 2009 - 04:02

The difficulty in a formula is that you can't put a price tag on beauty, temperament, differences in bloodlines,
drives, movement, structure; they are all subjective and are in the eye of the beholder.  Are all 4 year old  German VA males
worth the same amount or as desirable? Is every VP puppy of the same age worth the same amount in every country or despite the changes in the economy of the country or region? Your formula could give a broad range of prices for a puppy, costs that go into titling and raising the dog, hip and elbow and registration costs, but it would be very broad and vague. A puppy can cost as little as $350 according to a post today on this board and as much as $7500 on big sites that everyone complains about. Some say no puppy is worth more than $1000. Others say $2000 or $3000. It is all depending on what the market will bear. But how do you create a formula if the starting price of a puppy can vary by 1000% ?? It is all market driven and depends on the dog and what the buyer will pay.


by sdchargers on 11 February 2009 - 04:02

good luck, its a great idea

Davren

by Davren on 11 February 2009 - 04:02

gsdgermany2,

I might be mistaken, but,  I think John was not talking about selling/purchasing the ScHH3 males; rather, he was talking about people who offer the stud services for breeding. 





 


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