Price increases

[huntinlabs]

I would hope no outfitter would try to change an already agreed on price. It's a gamble you take when booking a year or 2 out. The real question is how does everyone see the exchange eat fluctuating? What are your predictions. I looked on one site and it seems like they have it at right around 10.4 to 1usd for most of 2018.

 

[npm352]

To the opening posters original post...it would be terrible business practice to do that. If he wants to be in business longer than a year that is. If an outfitter will doesn't like his prospective profit margin for a hunt then his two options are to do the hunt or return the deposit promptly so the hunter can rebook with someone else. A deal is a deal but that goes both ways. The prices have dumped the past year or two. I wouldn't expect an outfitter to drop prices of a hunt booked a year or more in advance because of market pricing being lower at the time of hunt. A deal is a deal....both ways.

 

[mark-hunter]

General price forming is one thing. I am not expert in that.

But regarding some species: for example sable, I have a feeling that today almost every farm is managing sable in some numbers.
So, my guess is that sable price will be reducing. Maybe down to price of kudu... in our lifetime.

For my budget it is still too high.

 

[Royal27]

Pricing fluctuations need to be built into the business model, period. Fluctuations in cost aren't specific to the Safari business for sure. All international businesses deal with it, and most other businesses as well.

Imagine what a trucking business has to deal with due to fuel costs.

Better save some money from the good times in order to get through the not so good!

 

[PHOENIX PHIL]

Pricing fluctuations need to be built into the business model, period. Fluctuations in cost aren't specific to the Safari business for sure. All international businesses deal with it, and most other businesses as well.

Imagine what a trucking business has to deal with due to fuel costs.

Better save some money from the good times in order to get through the not so good!

I don't disagree with you, however large international businesses have people that work on this pretty much full time, at least I know my company does. And they have at their disposal financial tools to help mitigate the impact of currency fluctuations. Expecting your average small, in comparison to your average international corporation, safari business to be able to operate the same I think is not realistic. Especially if that safari business is located say in Zimbabwe and their not exactly stable currency situation.

Furthermore other international businesses have a bit more control over pricing with respect to time than a safari company. Perhaps I'm speaking out of ignorance, but I know of no other business that sets a price on a product in today's currency conditions, accepts a relatively small deposit to seal the deal, then delivers that product a year or perhaps two years later. And only then accepts the remaining much larger payment for the product. And the product that was delivered at that time changed significantly with the addition of animals and/or hunting days and at the original agreed to prices.

To the OP's question, I completely agree with what others have stated, it would be terrible business to try and charge the client more than what was stipulated in the contract.

 

[tarbe]

Imagine what a trucking business has to deal with due to fuel costs.

Actually, all the carriers I deal with have fuel surcharges that are updated regularly based on the DOE published diesel fuel prices.

Pretty much keeps everyone from getting screwed when prices change a material amount.

Probably not practical in this instance, until the International Trophy Fee Department starts publishing prices!

 

[Rick Cox]

It's always an issue.
It's a bloody tough industry because it looks so lucrative (and is in comparison to other available options) everyone wants in.

There are huge permutations in Expenses:

The FB cowboy's or someone more established. Huge difference in expenses.

90KM one way trip or 390 KM trip. (Both of these are as the crow flies.)

Owning the game vs hunting rights
Mortgages vs hunting rights
Finding farmers who are willing to sell to the Outfitter at Biltong prices vs International prices. Sure changes the Outfitters cost structure.
Put and take operations vs self sustaining: Feed, vets, poaching, security.

Two examples I can readily access.
One small lodge vs 4 large lodges and staff.
Comparing expenses for a property that has a 5 KM perimeter vs 47 KM perimeter (estimated)
View attachment 213417 View attachment 213418

Lots of information here. You should write an article on this topic.

 

[JamesJ]

None of my clients got a price increase for an RSA hunt. Hunts are quotes in US dollars they are taking the chance on the rand exchange.

 

[GA Hunter]

It's always an issue.
It's a bloody tough industry because it looks so lucrative (and is in comparison to other available options) everyone wants in.

There are huge permutations in Expenses:

The FB cowboy's or someone more established. Huge difference in expenses.

90KM one way trip or 390 KM trip. (Both of these are as the crow flies.)

Owning the game vs hunting rights
Mortgages vs hunting rights
Finding farmers who are willing to sell to the Outfitter at Biltong prices vs International prices. Sure changes the Outfitters cost structure.
Put and take operations vs self sustaining: Feed, vets, poaching, security.

Two examples I can readily access.
One small lodge vs 4 large lodges and staff.
Comparing expenses for a property that has a 5 KM perimeter vs 47 KM perimeter (estimated)
View attachment 213417 View attachment 213418

Hey I recognize that larger property!

 

[BRICKBURN]

None of my clients got a price increase for an RSA hunt. Hunts are quotes in US dollars they are taking the chance on the rand exchange.

I would expect nothing less from you
James

 

[K-man]

I feel your pain.... I build houses and guarantee a price on contract with a commodity item (lumber) that changes price two or three times a week. Takes me 4-5 months to build the home. If lumber goes down, I make a bit more. Up, I can lose. Only way to guarantee my margin is to purchase the lumber ahead of time, but capital and storage space make that difficult. Same principles apply to hunting, especially on estate or ranch hunting. No easy answers.