Summary
For simplicity we have selected a ‘straight forward’ from a major broker, who sold in Melbourne Sale 18, season 2011/12. For the purposes of confidentiality we have not shown all the test data, brand etc.
…
Buying Costs - Pre Sale
This section describes the processes a buyer goes through pre-sale, to determine a bid price. That is, What needs to be considered to determine an auction bid. In this case our buyer was prepared to pay a maximum of 1127 for a lot that sold for 1200.
…Buying Costs - Post Sale
In the previous section we explained that the buyer needed to take into consideration a number of costs such as dumping, shipping, finance etc. The buyer allowed 34.01 c/kg greasy for these costs.
The buyer of course does not work on single sale lots, and often needs to trade in container loads. …
Buying - Bidding Strategies
In this section we will describe how the buyer went in filling his clients requirements for wool.
But first we will discuss the sample lot in relation to other simialr lots within the sale.
There were only 5 lots on the day that were close to the micron and type requirments. …
Pre-Sale Costs
These costs should be well known to growers - broker charges, testing fees, taxes & levies etc. so we will simply summarise them as they typically appear on the growers account sale:
Broker Charges - This was a 'straight' line, sold by a 'flat rate' broker (no commission), no rehandling, wool packs etc. …
Buying - Other Trades
We have seen in the sample lots that the buyer allowed approx 34 greasy c/kg for costs such as shipping, dumping, finance, profit etc. This appears to be one of the very basic terms available in the trade. …
Dumping - what is that?
It has been observed that not many growers understand the role a wool dump plays in the 'pipeline'.
The primary purpose being to compress the wool bales into a smaller package size - a dumped unit - such that more bales can fit into a container.
…