Prices are inflated.....

I went through the Kimberley card and was shocked to see the amount of expensive horses racing at this lowly centre.
Of the horses with their sales prices mentioned, 28 were between R100 000 and R500 000. 3 were over R500 000 but less than a bar. 5 were over R1 000 000.

And they were racing for a paltry total prize money of R40 000!!!!.

One would expect the cheapy horses to race at this venue. It only goes to show, horses don't know their prices. People inflate prices. And I would venture to make the statement that ALL prices on the sales are inflated and unrealistic.

Actually looked at the cost of some of the boosted/jooste runners here today,officer Wales 2.5m?

element Wrote:

---

> I went through the Kimberley card and was shocked
> to see the amount of expensive horses racing at
> this lowly centre.
> Of the horses with their sales prices mentioned,
> 28 were between R100 000 and R500 000. 3 were over
> R500 000 but less than a bar. 5 were over R1 000
> 000.
>
> And they were racing for a paltry total prize
> money of R40 000!!!!.
>
> One would expect the cheapy horses to race at this
> venue. It only goes to show, horses don't know
> their prices. People inflate prices. And I would
> venture to make the statement that ALL prices on
> the sales are inflated and unrealistic.


One only needs to look at the prices at the last TBA Cape Yearling Sale and the Equimark Vintage Sale to see that currently breeders are selling plenty horses below cost - so bargains to be had imo

So what is the best bargain you know of at the moment Frodo...something I have not ventured into yet but sounds really interesting being an owner...the UPS and the downs :S

Unfortunately I can't give a straightforward answer; for myself I would say pass the 'big' sales by; try to stick to first or second season sires that you fancy, or bread and butter sires just below the top 5 or 6; out of mares that have a least produced something useful before (or a first foal from a 'nice' family); make a shortlist; get somebody who knows what a horse should look like to look at those you selected; put a value to those that pass the test and go and bid - it's like Garp said 'a box of chocolates - you never know what you are gonna get'....

For these big time owners, the horse is lined up early in it's career and the owner will make their money back in 1 bet

PeeKay Wrote:

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> For these big time owners, the horse is lined up
> early in it's career and the owner will make their
> money back in 1 bet


lol

cant see that PK please explain.

If i buy a horse for 100k ex VAT

Pay training fees for say 60 months cheapest 5k a month 60k - 300k ex vat as well

i need to make back 400k per horse to break even

i dont know unless you place bet over the seas that you can get a big bet on like that.

My bet is that they are cross charging VAT to their own companies. Generating huge VAT claims offset against real business income.

so the horse is free.

The fees can go to entertainment or such and annual write offs.