How do I justify the cost of using a high-priced cattle mineral?
This is a great question - and a common one.
First off, before we start talking about return on investment, we need to make this clear. Upfront, the Riomax® tub program always has been, and more than likely will always be the highest upfront priced tub on the market. This does not mean it is the most expensive. When you crunch the numbers, do the math, and take a close look at your actual cost to feed (which is your real cost), Riomax® will come out lower cost per day for the vast majority of the time. No different from the way the feedlot and dairy industries look at costs, the true number to focus on is your daily cost to feed.
Yet, Riomax® is often thought of as expensive.
As one rancher from Montana said:
“Riomax® is only expensive if you don’t know how to do math”
In other words, if you do know how to do math, and you do due diligence on your ranching operation and your ranching business, your cost per head per day should absolutely be the number that you are making your decisions on.
Not the false upfront cost - which is neither here nor there, when it comes down to the cost to feed your herd per month, per season, per year, or however you want to slice and dice it. We would be doing our customers no favors if all we focused on was upfront cost.
Our focus is always rancher-centric, and hence, ensuring that the cost per head per day is low. That, of course, is then backed up by the COSTGUARD® consumption guarantee, which takes the risk off of the rancher’s shoulders and gives you a ceiling to your cost. Then, you know what the high end is going to be, without any negative surprises or confusion.
Year-Round Mineral: Yay Or Nay?
It is abundantly clear to folks that use Riomax® year-round that their cost per head per day is significantly lower than those that jump in and jump out. Low, consistent intake year-round means cows aren’t going to spike in consumption when they do have the tubs in front of them. Furthermore, the compounding results from continuous usage are very evident to ranchers.
In 2019, Larry from Wyoming used tubs year-round and here are his results:
100% 2YO mothers rebred (90-day exposure) and eliminated coccidiosis, summer pneumonia, foot rot, and cancer eyes.
Return On Investment
Now that we understand that on a cost per head per day basis, Riomax® is, for the vast majority of the time, the lowest cost per day program, we must understand that there is something far more critical than that. And that is the return on investment.
In other words, for every dollar you spend on Riomax®, how much are you getting back? What we call the ‘offset concept’ is what ranchers absolutely love. And that is where the value of the hay savings they see with Riomax® completely offsets the cost of Riomax®.
In many cases, we see Riomax® costing the ranchers $0, because of the amount of hay saved, and the value thereof has completely paid for the product. This is truly an example of how Riomax® justifies its cost.
To quote an old nutritionist, “the most expensive drug is the drug that doesn’t work”. To echo that, I would say the most cost-effective program is the program that shows the greatest return on investment.
Let’s discuss other ways that Riomax® justifies its own cost. Arguably the biggest measurable by which we are judged, year in and year out, is our effect on conception rates.
Typically, we see a 3-10% increase in conception rates. When we experience this kind of impact, the value of the heavier, healthier calves to market not only pays for the product but puts a healthy return in the rancher’s pocket. Further, we help that cow out on pasture produce more milk with an increased level of butter fat. The calf, in turn, can better-utilize that milk and better-utilize any grass it’s grazing.
This results in increased weaning weights - without the expense of high-priced grain supplements. Here again is an example of how we’re helping:
- Express that genetic potential
- Optimize that land base
- Optimize all the resources that the rancher has
All without having to spend money on expensive supplements.
Can Riomax® Earn Its Keep?
To conclude, if Riomax®, or any other high-priced mineral program can’t ‘earn its keep’, justify its cost, and create a return on investment, then it would be very questionable whether it has a place on you ranch.
Want to do your own research on whether Riomax® can earn its keep, and on other factors that contribute to a good mineral program? Click here to visit Livestock Nutrition 101, the Riomax® Learning Center. Or if you’d rather discuss it in person; call us, we’d love to see what mineral program is a fit for your operation.