Monday, January 11, 2010
Why Cost of Gain becomes Cost of Carry
Ever since Jim returned from his time with Bud in the USA, we have been debating the change within KLR. Not so much that we didn't agree on the change, rather it was a lot of work to make the wholesale change in the school and calculators.
Now that we have had some time this is taking place so from this day forth Cost of Gain will be known as Cost of Carry.
So why the change ?
It is all do with our thinking, especially in this production focused industry where most time the only way people profit is through animals gaining something whether it be weight or wool etc.
So Gain implies we must put on weight to make a profit from overpriced Inventory in order to replace them with Underpriced Inventory (grass,money,livestock).
The reality is, there are times when you can make a profit with no weight gain, and sometimes even a weight loss.
The profit calculators are changed to reflect this or are being changed.
KLR Mastermind members can download the updates by going to the KLR website @ http://www.klrmarketing.com.au/index.cfm?page_id=1037