HorseCountryonline.com Editorial May 1, 2008
Many economists today feel that we are in a recession. Clearly we have all witnessed a dramatic
increase in the price of goods and materials we all rely on, particularly at the gas pumps. The question
comes to mind, why am I talking about economics on a website devoted to the horse world?
A fair question, but more to the point why not? Whatever label we place on our economic situation,
recession, depression, inflation or deflation, it affects us all. Those of us in the horse industry are and
will clearly remain victims or beneficiaries of the broader economic woes of the country and the world in
general.
Today with grain prices and oil at all time highs we simply can’t ignore the consequences. The effects
of record grain prices will mean that more hay and pasture land will be converted to grain and will
certainly result in a reduced supply of available hay to feed our animals, likewise with the cost of
petroleum products. Our upfront cost of transporting our animal for whatever purpose has increased,
not to mention the greater cost of bringing our feed and hay to us.
So, what can we in the horse industry do about it? Certainly this increased demand on our resources
cannot and should not be ignored. There are many things that we could do such as cut back on our
operations, liquidate some of our less productive assets, decrease our travel, sit tight wait it out and
hope for better times. These are all possibilities but think about it, these are all defensive moves.
We who are involved with horses are involved because we love the lifestyle it’s what we choose to do.
So why let outside circumstances dictate or prevent us from doing what we love to do. What we need to
do under the present conditions is think smarter. Turn our lemons into lemonade.
It has been proven that smart businesses don’t just cut during a recession, they readjust their thinking.
If possible cost share with your neighbors, when you schedule regular veterinarian or farrier visits see if
some other equine owners would alter their schedules and have their horses done at the same time,
thus splitting the call out cost. It is also possible to ask the provider for a group discount. This may not
be possible in many cases but where it is it is certainly worth the try. The same may be true for feed
deliveries. Consider having your hay or feed delivered in larger quantities to a local area and split the
delivery cost. If you are traveling to a show, perhaps others in your region are going to the same
show. I realize that some of the independence is lost but as they say, “necessity is the mother of
invention”. The point here is to think outside of the box and that networking can be a great tool.
If you are promoting your horses or horse products it is important to keep your exposure to the public.
There are many examples of companies that maintained or increased their ad budgets during
recessions and found that at recession’s end they had jumped ahead of their competitors by wide
margins. If you are thinking about cutting back your ad budget because of a recession, think about why
you advertise in the first place. It is to sell your product or your services, correct. It is entirely possible
to strategically use the recession to pull ahead of competition if you maintain your exposure to the
public. Perhaps you may choose to reallocate more of your advertising budget to the web verses the
print media, thus reaching a broader audience. The important point is to keep your image and your
product before the public, whether it is horses or horse shoes.
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