Recession Effects on the Horse Industry

You probably have had your fill of reading and hearing news of recessionary effects on the economy.  And may be like me, you wonder what it means to the horse business.

Putting some thought into it, recession effects on the horse industry mean:

• Even more depressed prices for "average" horses
• Softer prices for exceptional horses
• Casual horse owners with boarded horses and stretched budgets will sell their horses
• Serious horse owners with boarded horses and stretched budgets will find a way to keep their horses
• Boarding Lesson Training operations that compete with price only, will fail
• Boarding Lesson Training operations offering value at a fair price will survive due to the nature of their clientele
• Some horse owners will come to the conclusion that horses are for the rich, only.
• Some horse owners will come to the conclusion that all sports are expensive and if horses are in their blood, they'll find a way to include them in their lives.

What's your take on less dollars to spend in the industry?

Comments

[Rob Davy]

We were just talking about this, and how the potential US recession will affect us here in Canada and our lesson business. We rely on lessons - we do about 110 kids a week in riding lessons, and for most, it's a recreation activity coming out of their disposable income.

Luckily for us, the Canadian Government announced a $500/year Tax credit for physical activities for kids in the 2007 budget ( http://cra-arc.gc.ca/fitness ). This will/is certainly helping us.

"Boarding Lesson Training operations that compete with price only, will fail"
I'm not sure that's completely true. I think price will become a larger factor in people's stable selection process, so you'll have to start completing more on price and not just letting your service sell itself regardless of price. This might mean 'lowering your standards' if they're too high for the price.

[Scott]

Hi Doug,

Have you seen the Center for Equine Business Studies at Texas A&M University http://cebs.tamu.edu/ ?

I just found it. Their newsletter, Equibiz Now, is a "B2B resource for the horse industry."

I'm just now starting to read through the past issues. Looks interesting.

Scott

[MJ]

Well, in Detroit we don't know any one with a horse anymore.

Boarding facilities are being taken by banks left and right. If you're expensive, you're out of customers and if you're cheap you're loosing money and the banks coming to kick you out.

The lesson busines is a ghost town. years ago we used to get a phone call a day from the sign at th road during the summer months...this summer we got 2 or 3 calls.

...and breeding is always a money looser.

Thanks GWB, for ruining our economy !