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Other Investment Considerations
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Especially for Newbies Four Investment Considerations
If you like what you have read, or have any comments Contact Info: 530-620-6033 PO Box 190 8226 Stoney Creek Rd Somerset, CA 95684
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The following information comes from my experiences, thoughts, and observations as a "newbie" (less than one year in the business at the time of this writing). Hopefully, it will give you something to think about. When talking about investing in alpacas the initial conversations usually center on the purchase price—which is a huge consideration. However, it has been my observation and experience that there are several ways to invest in alpacas, including but not limited to: Financial, Emotional, Time, and Continuing Education. There are several expenditures associated with owning and raising alpacas -- some are one time expenses, some are on-going, and others can be voluntary or discretionary. Purchase I have observed the look of “sticker shock” and heard “HOW MUCH?”….or similar words and phrases (spoken or unspoken) when someone first sees or hears alpaca price tags. Suffice it to say that alpaca ownership requires a significant financial investment. Property If your plan includes keeping your alpacas on your property there are many associated costs that could represent significant investments. Some may include:
Caretaker/Guardianship Costs When you commit to alpaca ownership, you commit to becoming their caretakers and guardians. If you can’t commit to this role, please don’t consider becoming an alpaca owner. Costs associated with keeping your alpacas on your property and in your care include, but are certainly not limited too, the following:
Association/Membership Costs When putting together your financial plans, seriously consider joining national and local organizations and affiliates that support the alpaca industry. Your membership choices will depend on your personal interests and business plan. Take the time to explore the options and choose what you think will work best for you. Registration Costs/Fees If you decide to register your animals you must join the appropriate alpaca registry. Keep in mind that there are costs involved whenever you register and/or transfer the ownership of an alpaca. Breeding Fees If you intend to add to your herd through a breeding program, there are associated costs involved. Some of those costs include:
Transportation Costs Transporting your alpaca(s) home after purchase can be handled in several different ways. In some instances, the transportation cost may be included in the purchase. If not, you will find yourself having to transport yourself, share expenses with another alpaca ranch, or contract for transportation. Either way, there will be a cost involved. Attending Conferences/Seminars/Clinics/Workshops As the industry grows, so do the number and variety of excellent clinics and workshops addressing the numerous aspects of alpaca ownership. See the section on “Continuing Education” for more information. Participating in Alpaca Shows There are several costs involved in participating in alpaca shows including:
Creating and maintaining marketing material If you are entering the alpaca business to buy, breed, and sell alpacas you will need marketing material. Some of these are:
If you plan to show or attend events, you will also need:
There are many costs of alpaca ownership and this information was given to provide a broad overview of expenses and is certainly not all inclusive. When talking with most alpaca owners one of the common themes you will discover is their love for the animals. Once they “fall in love,” they go about learning more about the animals and the many aspects of the industry. Most likely, I have just described your experience. I have yet to meet an alpaca owner who is not emotionally involved with these magical, mystical animals. I can still remember the physical and emotional feelings the first time I placed my fingers into the soft, dense fleece of an alpaca. I remember the sheer, childlike joy the first time I watched a group of cria “pronk” through the field as the sun set on a warm day and how my husband and I laughed as the “older girls” joined in the fun. That scenario still stops us dead in our tracks, takes us away from what we are doing, and time seems to stand still as we share the enchantment. As of this writing, I have not experienced a birth. However, words can barely describe my emotions when I saw our youngest cria at less than two hours old. I have just described the tip of the iceberg when it comes to the “feel good” emotional experiences of alpaca ownership. And, it is the emotional “upsides” that help alpaca owners survive the emotional “downsides.” My husband and I refer to ourselves as the “guardians and caretakers” of our alpacas and we take this responsibility very seriously. When we accepted these roles, we opened ourselves emotionally for a great amount of pleasure and joy and for the flip-side, pain and sorrow. Although known for being “easy keepers” these animals do become sick, they can get injured, and in the worst case scenario they die. This can take an emotional toll and you must be willing to accept the risk of riding the emotional roller-coaster. A common question I have heard from those looking into the alpaca business is “What is the downside?”…which translated usually means this all sounds too good to be true. I tell them that, in my humble opinion, the emotional investment is the biggest downside. Yet, even the downside can have an upside. I think it is safe to say that most of us enter this business as adults and have already experienced some emotional pain and loss and hopefully much joy and pleasure. Many entering this business have young children. What better way to prepare children for the future than to let them experience life through the complete circle of life to death. If you can identify with any of what I have said here, then you can understand what I intend to convey when I talk about the emotional investment of alpaca ownership. If you are reading this you are already investing your valuable time in learning about alpacas and the industry. You may have already been bitten by the “research bug.” Many people I talk with have said they have been researching alpacas for months or years. So, what are the various ways you can invest time? Here are just a few:
All of these are valuable and advisable ways to spend your time and I am sure there are many more I haven’t presented here. Remember, this is an emerging industry—there is much to be learned and much to contribute. Investing In Continuing Education Coming from a training and education background (my life before alpacas) you would expect me to stress the need for continuing education. And, that being said, continuing education is just as important in the alpaca business as it is in any other business or profession. When we begin exploring alpacas we don’t know what we don’t know. If we are seriously researching alpacas and the industry it doesn’t take long for us to realize there is so much to learn. One of the many, many things about this business that impressed me from the beginning is how much information is available, if we just look for it. The internet has opened up so many avenues to learning and the industry has responded with an overwhelming amount of available information. From the AOBA site to individual personal ranch websites and all points in between there is a wealth of information available and much of it is absolutely free. Also available are a variety of conferences/seminars/clinics/workshops offered in many locations. Many of these are sponsored by individual ranches and offer some of the most important topics and top presenters in the industry. Some important topics include neo-natal clinics (all about the birthing process from conception to delivery to post-partum care), alpaca nutrition, alpaca husbandry, how to market your alpacas, the ins and outs of showing alpacas, understanding fiber production (interpreting histograms, how to build a breeding program around fiber production, preparing fleece for competition, etc.), the tax advantages of the alpaca business and how to benefit the most from them, setting up your barn, pastures, and other facilities, how to “handle” alpacas, and many, many more. I urge you to seriously consider attending these events and to add a continuing education budget allowance to your business plan.
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This site was last updated 01/10/07
