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  1. #1
    Join Date
    Nov 2009
    Location
    Halifax, Nova Scotia, Canada
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    1,973

    Question Getting Out: Is it always a losing proposition?

    I'm not getting out myself, but getting in more and more: expanding. But having a conversation with a friend, he talked about how hard it is to get your money back if you sell out of beekeeping. He said you'd be very luck to make 50 cents on the dollar.

    What are your thoughts?

    Is it always a losing proposition?
    Is the possibility of selling out a solid reason for using the most standard equipment you can?
    Are there other ways to maximize your resale value as you build your operation?

    Thanks,

    Adam

  2. #2
    Join Date
    May 2012
    Location
    Rockford, MI
    Posts
    2,534

    Default Re: Getting Out: Is it always a losing proposition?

    I'd say your friend is correct. It's not like corvettes where they actually increase in value as time progresses. Used equipment is a losing proposition unless you take into account the money earned (selling product) as well as personal satisfaction that was gained during the experience. Then, this way, you get your money back.
    Your standard may not be someone else's.

  3. #3
    Join Date
    May 2012
    Location
    McDonough, NY United States
    Posts
    244

    Default Re: Getting Out: Is it always a losing proposition?

    Unless you buy smart and find good opportunities, I would think you will always lose money on equipment. If you buy out whole yards for pennies on the dollar compared to new, you may be able to make a profit some day.

  4. #4
    Join Date
    Jul 2010
    Location
    Auckland,Auckland,New Zealand
    Posts
    5,913

    Default Re: Getting Out: Is it always a losing proposition?

    Learn how to breed queens. Take bees from some hives and make nucs and sell them, there is a good demand for nucs. Start selling one or two nucs this season, and keep selling them. When it's time to sell up altogether, you'll be quite familiar with selling nucs & you should, over a season or two, be able to break down and sell all your hives as nucs, and realise a good profit.

    The key is that you have to figure out a way to breed a small number of queens as you need them.
    44 years, been commercial, outfits up to 4000 hives, now 120 hives and 200 nucs as a hobby, selling bees. T (mostly).

  5. #5
    Join Date
    Sep 2011
    Location
    Santa Rosa County, Florida
    Posts
    397

    Default Re: Getting Out: Is it always a losing proposition?

    I agree that selling out is almost always a losing proposition.There is one easy way around this problem.Don't get out.

  6. #6
    Join Date
    Jun 2012
    Location
    Citrus County, Florida, United States
    Posts
    258

    Default Re: Getting Out: Is it always a losing proposition?

    It's called depreciation.

  7. #7
    Join Date
    Dec 2005
    Location
    Brasher Falls, NY, USA
    Posts
    26,764

    Default Re: Getting Out: Is it always a losing proposition?

    Quote Originally Posted by Nature Coast beek View Post
    It's called depreciation.
    Amen
    Mark Berninghausen "That which works, persists."

  8. #8
    Join Date
    Apr 2011
    Location
    Weeki Wachee, Florida,USA
    Posts
    1,959

    Default Re: Getting Out: Is it always a losing proposition?

    It would depend how you do the math.
    How do you value your used equipment and how you filled them with bees.

  9. #9
    Join Date
    Mar 2011
    Location
    Slidell, LA, USA
    Posts
    259

    Default Re: Getting Out: Is it always a losing proposition?

    We are all concentrating on equipment. How about his customer base, name and yards. That all has value, if it exists. The purchaser should operate the hives under the old name for a while as he moves any customers over to the purchasing company. His bees have value, if nothing else as previously mentioned make up nucs or entire hives and sell them as a complete deal, equipment and bees.

    If the seller has a good reputation he should offer to help the transition, a little time during the transitition can make for a successful, more profitable deal. I agree if all you have is used equipment you'd be lucky to get 50 cents on the dollar.

  10. #10
    Join Date
    Oct 2010
    Location
    Mammoth Cave, KY
    Posts
    148

    Default Re: Getting Out: Is it always a losing proposition?

    Quote Originally Posted by Oldtimer View Post
    Learn how to breed queens. Take bees from some hives and make nucs and sell them, there is a good demand for nucs. Start selling one or two nucs this season, and keep selling them. When it's time to sell up altogether, you'll be quite familiar with selling nucs & you should, over a season or two, be able to break down and sell all your hives as nucs, and realise a good profit.

    The key is that you have to figure out a way to breed a small number of queens as you need them.
    My thoughts too. You saved me the time of typing.
    Poppy's Bees, Queens, and Honey
    Mammoth Cave, KY

  11. #11
    Join Date
    Nov 2009
    Location
    Halifax, Nova Scotia, Canada
    Posts
    1,973

    Default Re: Getting Out: Is it always a losing proposition?

    Oldtimer - great point. If a person isn't in a sudden jam, needing to get out fast - then selling off woodenware with bees as nucs is a great approach to consider.

    And Alblancher's point is good too. If you have a network of people that you know and the business relationships can actually facilitate the sale of your operation and the expansion or beginning of someone else's.

    The thought came up when I was looking at an ad posted for a guy selling a bunch of gear, and he would only sell it as a single package for a single price - all or nothing. And it made me wonder about what the best approach to selling out was.

    Adam

    Adam

  12. #12
    Join Date
    Mar 2011
    Location
    Fort Worth, TX, USA
    Posts
    1,766

    Default Re: Getting Out: Is it always a losing proposition?

    It's true of any hobby. Selling off gradually to the right buyers, the nuc idea, sounds like how to pull out without losing value on investments. It does mean continuing to work, rearing the queens and putting nucs together. But money's nice,.
    Time to be a gypsy again, 2014 will be my prep year, my bees want a better area with actual rainfall.

  13. #13
    Join Date
    Dec 2005
    Location
    Brasher Falls, NY, USA
    Posts
    26,764

    Default Re: Getting Out: Is it always a losing proposition?

    Quote Originally Posted by Adam Foster Collins View Post
    Is it always a losing proposition?
    Is the possibility of selling out a solid reason for using the most standard equipment you can?
    Are there other ways to maximize your resale value as you build your operation?

    Thanks,

    Adam
    Yes, imo, standard sized equipment has more of a chance of resale, better resale value.
    Very few things appreciate in value making what you sell equal to or better than what you invested in them. You got your money back thru use.

    I have a friend who sold his operation a number of times over the life span of his business, by selling equipment and bees and replacing them. But, in the end, when he sold the honey house, contents and hive he had a hard time of it.
    Mark Berninghausen "That which works, persists."

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