Microsoft, the little guy, Co-ops and Under Investing, Oh My!!!

[BPHERP]

I have, loved, owned and cared for many types of reptiles over the years, however, my new, however small, breeding project is barely underway, and of course it will revolve around ball pythons.

But, speaking from a purely business point of view, which I know a lot about being a web developer and business owner for over 15 years, I felt the need to offer some thoughts on the breeding business.

If we look at large established breeders as the “Microsoft’s” of the Ball Python world, we are then naturally “the small guy in the room”, and, in all probability, we will never be a “Microsoft

To that end, some of you who are far more knowledgeable than I will have to point out “Ball Python” or “Breeding Business” anomalies that may expose weakness in my analysis, but I will continue.

Like any other small business, money can be an issue, supplies and resources can be limited and/or scarce, and so, what can one do? How does one even attempt to compete? Should we even play the game?

I have heard that in the breeding business people sometimes trade specimens and/or loan out snakes for breeding projects and some revenue is shared, or hatchlings are divvied up, etc. One of the reasons this happens is simple; not everyone has 25K-50K to buy high-end breeding ready stock (as in BREED NOW, not tomorrow, not next year, NOW) that gets right into production, and thus, some resources (snakes) are shared in that way.

Personally, I am going into this in a relatively small way, which will end up somewhere between 4K-5K, which in all reality isn’t a lot of money when considering that most of that 4K-5K will be purchasing snakes that won’t be breedable for 2 to 3 years (not counting inexpensive male morphs that we can match to breedable normal females) The only reason I partly don’t mind is because I love snakes in the first place, so if this means I just get to breed sweet morphs for myself, then I figure there are worse things in the world. It’s like being an artist; if nobody buys my paintings (morph creations), then I at least still have my own art.

But, back to my little rant…, what this means is that, by the time our initial investment is viable for breeding, there is no way of knowing how much the cost prohibitive morphs of today will be 2 to 3 years down the road.
I just picked up a female spider ball for $200 and a male Mojave for $200 as well, and we all know how much these were going for not so long ago.

So, I think there are only 2 remedies.

1) Strategic partnerships:

Pool resources, plan, plan, plan, get with someone you can trust, or a group you can trust, and form a co-op that buys high end breedable stock and revenue share.

2) Invest larger, not smaller:

I am a poor example of this, because I committing just 4K-5K, but to use myself as a good example of what not to do, I am probably hurting myself more by investing 5K, than if I invested 15K to 20K. What I am saying is that one can easily under invest; by going in with more viable breeding stock, stock that can BREED NOW, it could essentially put you a few years ahead of someone that is doing what I am doing.

I am interested in hearing any other thoughts you business minded types would like to offer, as well as those who are pure breeders and know the business better than I.

One thing that might bode well for me is that, along with becoming somewhat of a breeder, I am a web developer and marketer, which means I can design and upkeep my own website, as well as market it via the web, which is what I do for a living. That, at the very least, puts me ahead of the curve when it comes to all things web related, because I am also a creator of brands and branding campaigns, which after all, if you don’t market yourself well, you will lose more often than not.

I hope somewhere in this rambling I formed what could be considered a coherent thought.

BrandonBalls

[janeothejungle]

Weeeeell. I'm a micro breeder, but here is my take. Quite a few people seem to think it is more prudent to invest 5 or 10K in quantity (ie 10-20 snakes at the low end of the morph spectrum) they seem to reason that producing volume will make up the deficit in having lower end animals. Nothing wrong with that approach, except that you will then always be at the lower end of the spectrum. By the time you get ovulations and eggs and then incubate then raise the little buggers for at least a month, half the year has gone. For me, I started out a few years back with 4 normal females and a lesser male that cost me $4k and was not quite breeding size. SO, lets say 5k total invested. Within a year, that investment, in turn, brought in ~11 wee lessers that were then going for around 2200-2500 each. I held back 2 and let the rest go and then traded up for another single male around $4k, a few more girls and also made back my initial investment. (See where I'm going with this?) I think ultimately, it is a bit of a gamble trying to decide which mid-level morphs to bet on, but you still need to keep an eye on the business end if you want your hobby to at least pay for itself. With that said, the market is also changing as more morphs flood in, so it requires an even keener eye nowadays. Too many in the hobby seem to think you need to build up a large collection and start cranking out offspring, when I think it is almost the opposite. Start small and be good at what you do. Start out with the anticipation of earning $0 for your first year or two (cause lets face it, even if you sell a baby or two it likely barely offsets your food costs). When you get the rhythm, then you start building and working for it.

My .02


Cheers,
Kat

[Clear]

I am not a snake breeder yet, and may never be. But I have to say that both of you are right. Everyone's business will grow differently, and different styles work better for different people.

[BPHERP]

I agree all around. I, for one, understand that the reason I am doing this is because I love the animals, first and foremost, and secondary, at least for now, is knowing that it will be 2 to 3 years before 1) I get some real world experience in breeding balls, and 2) being in a position to use my webmaster & marketing skills to set up a quality, reliable, website, that is both informative and have something to offer to all levels of potential customers.

[Colin Vestrand]

i personally believe that it is a much more rewarding experience to hatch out some pythons from parents that you raised up from neonates... it's sooo worth the 2-3 year wait.
but, that is why i'm just a little hobby breeder.

[rabernet]

I think that ultimately, the future of ball pythons will be selective breeding. You know the saying "the cream always rises to the top"?

I'm willing to spend extra on an animal that is high quality. Let's take pastels for an example. I'd rather spend $300-$400 for a stunning pastel female, than $100-$200 for a drab one.

When people realize that you truly do "get what you pay for", if you have built your reputation on selectively breeding, people will come to you. No matter what your size. Build a solid reputation as a person, as a breeder and as a business person - and I think that anyone can do just as well as the "big ballers" in the industry.

And if they don't sell - hang onto them and get some weight on them. They'll be worth that much more. Do you know how hard it is to find a quality, breedable weight female of any morph? Simple supply and demand. While others may have dumped their stock as babies, you valued yours and knew that someone, at some point in time, is going to want and be willing to pay for your animal. And that $300 hatchling female may very well be able to sell for $1000 as an adult. That's certainly worth MY time!

Do NOT count on a sale to cover some bill of yours - pretend the money of the potential sale doesn't even exist. And even then, bank it - so if something goes wrong (which we hope won't), the funds are still available to make it right with your customer right away.

[iCandiBallPythons]

Weeeeell. I'm a micro breeder, but here is my take. Quite a few people seem to think it is more prudent to invest 5 or 10K in quantity (ie 10-20 snakes at the low end of the morph spectrum) they seem to reason that producing volume will make up the deficit in having lower end animals. Nothing wrong with that approach, except that you will then always be at the lower end of the spectrum. By the time you get ovulations and eggs and then incubate then raise the little buggers for at least a month, half the year has gone. For me, I started out a few years back with 4 normal females and a lesser male that cost me $4k and was not quite breeding size. SO, lets say 5k total invested. Within a year, that investment, in turn, brought in ~11 wee lessers that were then going for around 2200-2500 each. I held back 2 and let the rest go and then traded up for another single male around $4k, a few more girls and also made back my initial investment. (See where I'm going with this?) I think ultimately, it is a bit of a gamble trying to decide which mid-level morphs to bet on, but you still need to keep an eye on the business end if you want your hobby to at least pay for itself. With that said, the market is also changing as more morphs flood in, so it requires an even keener eye nowadays. Too many in the hobby seem to think you need to build up a large collection and start cranking out offspring, when I think it is almost the opposite. Start small and be good at what you do. Start out with the anticipation of earning $0 for your first year or two (cause lets face it, even if you sell a baby or two it likely barely offsets your food costs). When you get the rhythm, then you start building and working for it.

My .02


Cheers,
Kat

Very very well said