Articles

The State Of The Industry, Halfway Through The 2009 Season

By Russ Vento

In June, with two major shows—Scottsdale and the Buckeye—and several regionals behind us, I sat down to evaluate how the Arabian horse industry is doing in this crazy year. By ‘crazy’ I mean a year with all those outside influences like economics and politics, etc., that aren’t really our industry, but have such an impact on us. My conclusion? Not everything is as bad it might appear. We may be running scared, but we’re running smart.

Showing

Our season begins, for all intents and purposes, with Scottsdale. With about the same number of horses as in 2006, it was a very positive start. True, Scottsdale does have an edge; it is a great way to get qualified for Nationals, and everyone loves to go to the warm sun in February. But the Buckeye also had solid entries. Maybe people turned out there because it is known for the quality of its young stars, the excitement of its classes, and the new classes with prize money programs—but whatever, people and horses turned out. Neither Scottsdale nor the Buckeye had increased attendance, but they held their own, and in this climate, that is impressive.

What about the regional shows? From what I can tell, they are down about 100 to 200 horses. At the ones I’ve been to, the sport horse portions of the shows seem to be doing the best at maintaining their overall numbers. I wish I could say it is just one division getting hit, but I can’t. The drop seems to be peculiar to each show, and while we might want to trace it to the economy, I’m not sure that’s all of what is going on. There are other reasons that contribute too.

For instance, I’ve always shown a lot of country pleasure, and at regionals this year—oddly—some of our English classes have been bigger than the country pleasure classes (even at Scottsdale, country numbers were down). I found that the youth portion of that division was fine; their classes were up in the 20s, but the open numbers at regionals were down in the single digits. Our 18-to-39 country, which usually has 18 to 20 exhibitors, was sometimes down to two or three. Maybe the country exhibitors got qualified at Scottsdale or at the class A shows, or maybe they’re just choosing not to show once they are qualified. AHA has continually made our regional qualifications tougher, so maybe people weren’t qualified for regionals. Or they could be just saving their dollars and picking regionals closer to home.

My conclusion is that actually we’re okay. Everybody is watching their pennies, but that is not a bad thing. Are people stopping showing and training? Are they not riding their horses? No, they’re just planning more. Are they planning because they have to? Maybe. Because they should? Definitely. Yes, there is a huge amount of jobs being lost in this country, but realistically, most of them aren’t being lost by horse people who show. I believe that our fears are of the unknown. We just don’t know what the future holds, and we’re being careful.

What should show management remember, and what can owners, exhibitors and trainers do to help?

As I said, some of our shows continue to be strong, like Scottsdale and the Buckeye. Both of those shows have incredible management staffs that have been there for years, and I think that has a lot to do with their success and the loyalty of their exhibitors. A show can’t be too exhibitor-friendly. As one example, if a show is going to have a patrons’ or hospitality lounge (which are important places to make friends and do business), it needs to be inviting. If trainers and exhibitors are going to leave the work they have to do in the barn, they won’t be attracted by celery and cheese sticks. It has to be worth their while. They have to want to come back. Everything done for the exhibitor is positive and builds for the future.

Exhibitors have a role to play as well. Here’s an example. Let’s face it; the stands have been empty for years, except at shows like Scottsdale, where management works so hard to bring in crowds and has a long history of doing it well. What if, for the regionals, all of us invited our friends? Some of our clients did that at Region 1, where they live, and it made a real difference. Each one invited five friends, and for three nights, we had 20 extra people—parents and kids—in the stands. They came back to the barn afterward and fed carrots to the horses. Everybody was saying, “Where did you get all these extra people?” If we all invited five extra people, maybe one would get into Arabian horses (or maybe not, but everyone will have a great time!). Picture a father driving eight kids around the show grounds on a golf cart, or a 4-year-old boy, shoving his glasses up on his nose and peering out from under his ball cap as he clutched my hand and declared, “Someday, I’m going to ride!” I replied, “Well, you’ve got to get a little bigger,” and he shot back, “I’m growing fast!” It’s a great feeling when you see that little kid stroke a mare and cry, “She likes me!”

Breeding

In my opinion, breeding has been hit 50 percent across the board. Unfortunately, we have probably only a dozen or so large private breeders left. Smaller breeders, with, say, two to five foals a year, seem to have cut back. Many are waiting to see what future holds. But we’re looking at a future that will need Arabian show horses. I would never recommend that anyone do anything he or she can’t afford, but I wonder if there are ways to breed that don’t strain the budget. Maybe we should consider partnering up on foals? Or maybe instead of patronizing the big name stallions, we breed to our neighbor’s stallion. Before transported semen, that is how many of our best stallions got their start. Another trick from years gone by is that many owners bred their mares at horse shows to cut down on costs. The rule for most of us is budget, budget, budget—but even within budget constraints, some outside-the-box thinking can accomplish a lot.

Many farms have made what I consider to be smart adjustments to help people out. For instance, they have allowed customers to pay for breedings in installments, or offered special incentives, or discounted prices for return breeders.

All of that said, I do agree that it pays for owners to watch their budget. Beyond the cost of a stud fee are the costs of caring for the mare and baby. If someone is in financial stress, then the obvious answer is to wait for another time. But that advice is good any time, not just this year. We always need to be real about the cost of what we want to do and make smart choices.

Selling

Are sales down, or have they just readjusted? I think they are readjusted. True, there is a handful of people out there who can buy the greatest horse for the highest dollar. However, they could have done that 2 years ago; they haven’t been affected. In my opinion, there has been a readjustment in pricing of about 10 to 15 percent—but people are still buying. No question, they are buying for their children. Their involvement in Arabians is more than ever a family thing, or in support of an amateur (such as a husband doing it for his wife). They are just thinking and reasoning more before they act.

Advertising

Should we be spending money on advertising? Is it really useful? Here is what a longtime Arabian owner/breeder/exhibitor told me. “I believe it is good, strong business to be as optimistic as you can,” he said. “Make sure you’re not reacting and making business decisions out of desperation. … As an advertiser, you can contribute to the fear or you can help diffuse it. The more customers perceive you going about your normal course of business, the more normal things will feel to them. And the more quickly we can all get back to normal.”

My friend makes a lot of sense. If we pump our own spirits, broadcast the positive rather than the negative, it can have an endorphin effect. The more we all rally around with positive thoughts (as opposed to endlessly focusing on the negative, as seen in some of the more destructive chat rooms and blogs), the more we can restore a sense of balance.

Again, in many cases, it doesn’t have to be about lots of money. It’s about being smart. For instance, a great advertising/promotional tool for anyone doing business in Arabians is a website. I’m not the world’s best sleeper, so I’m on the internet a lot at night, looking at Arabian horse websites. Sad to say, many of them haven’t been updated since 2006. One thing is sure: If the horse material on a website is not updated, it’s not going to do its job. It is as simple as a phone call or email to your webmaster, or if you do it yourself—well, then, do it. Add new pictures, update show titles, or take pictures of your foals and post them. I’m not the only one who doesn’t sleep at night.

Another avenue of promotion is the e-mail blast. We get them every day, telling us the latest about all sorts of Arabian-oriented organizations. Just remember that if you send out an e-mail blast inviting people to check your website, make sure that the whole site—not just the part on the horse you are asking them to see—is updated. You will have someone’s undivided attention to tell them about you business, so be ready.

Of course, there is also the traditional magazine, which remains extremely popular, particularly in the Arabian horse industry. Our publications are not just news media; they are more like art books. They set memories in time and record history. I can refer to issues of Arabian Horse Times from 20 years ago, and there is a picture of my mother. In horses, we will always be able to go back generations in a pedigree and see the individuals behind the names.

As I look around, I see that the farms that are successful are the ones who are out there still doing business and letting people know what’s going on. If we are winning prizes, producing foals, selling horses or even just developing our program and we’re not telling everyone about it, then it is as if we went to a dance and never invited anyone to dance. There are so many levels of advertising, with all different prices, that most people can find something affordable. If they can’t, then perhaps a way to go is to partner up and share the costs with a friend.

A Few Parting Thoughts

As I look around at our industry and the state of the economy today, I am struck with the fact that while some people are shutting down farms and dispersing herds, they are not doing it because they don’t like Arabian horses. In this uncertain economic climate, people are cutting back their horse activities because of their own financial situations. For most, their horse operations are secondary to their primary incomes, and the trouble is in their primary incomes, not their love of Arabian horses.

In my opinion, we need to take a positive approach to life in general, and that includes our Arabian horse businesses. Let’s support our friends, our family, our lifestyle. Yes, we’re scared, but the world is not coming to an end. It is not the first time we’ve had this issue; I’m 50 years old, and I remember other scary times—how about the 1970s, when OPEC tightened the oil supply and we could buy only one tank of gas a week? Somehow my mom and dad figured a way to load our three horses in the trailer and go to the Estes Park horse show. If anything, those good times at the horse show were even sweeter, given daily life’s other tensions.

The lesson, I think, is that right now what we’re doing is like resetting a computer. We’re resetting our financial goals to fit the times. It never hurts to establish a budget and keep an eye on what’s going on. It is going to be challenging for the next couple of years, but there is no reason we can’t come through this even stronger than before. President Roosevelt said it best: “ The only thing we have to fear is fear itself.” So let’s address our issues straight on, with a positive outlook and a course of action that can mean success for us all.

For anyone who would like to email questions, topics, or comments, I can be reached atinfo@battagliafarms.com. I’d love to hear from you.

Russell Vento Jr. has been involved in the Arabian industry for 30 years, and since 1989, has been a partner in Battaglia Farms. He has been honored twice with APAHA Amateur Horseman Awards, and has been a Large R USAE/AHA judge since 1996. To date, he has owned or shown more than 30 U.S., Canadian and National Show Horse national champions, many of whom he shared with his daughter Skyler, a national champion rider in her own right. Now Vento and Bob Battaglia enjoy not only showing, but breeding champions and following the careers of horses from their program.