Trophy Fees Question

[dmyers]

Does the profit margin go up with higher trophy fees? Does this change with each country? Example- for an outfitter, is it more profitable to shoot a Kudu vs a impala or do outfitter costs mirror trophy fee? Thanks in advance for input.

 

[CAustin]

Is the profit margin for a Mack Truck the same as a Ford Focus? Of course not. The price for the Mack Truck in Allentown PA is a lot different than it would be in Johannesburg South Africa given the shipping costs to get it there and various import fees.
To your point the bigger the item the cost goes up and often the margin by % can be much more than that of the smaller item also.
So one would expect the margin on an elephant to be much better than that for an impala.

 

[dmyers]

Yes- but the material and labour in a Mack Truck cuts into the profit margins deeply compared to a Ford Focus. And given the time and effort required an outfitter puts in for say, a leopard hunt, I can understand the related costs. But is the trophy fee purely a function of the market and supply and demand? I'm fine with that, but curious about how it works.

 

[BRICKBURN]

Every country is a little different.
In a strict sense, if the Outfitter is buying game his costs are going to be in concert with the trophy fee.
What the market will tolerate does drive the prices. Look at Sable prices in RSA.

Ranch Lion vs Wild Lion
Government Concession or Ranch

Make sure you are comparing Apples to Apples.

 

[CAustin]

Yes- but the material and labour in a Mack Truck cuts into the profit margins deeply compared to a Ford Focus. And given the time and effort required an outfitter puts in for say, a leopard hunt, I can understand the related costs. But is the trophy fee purely a function of the market and supply and demand? I'm fine with that, but curious about how it works.

True. But you didn’t ask about supply and demand in the original post. Brickburn gives a wonderful example of what over supply has done with the Sable in South Africa (farm raised animal vs free range) Over supply and less demand has brought the price down to a point of equilibrium so to speak. Lower prices on the farm than a few years ago so less margin but now a few more being sold. Still takes a lot of those impalas taken to equal the one Sable.
And The outfitter would sure rather a hunter take the Sable vs the impala.
Booked a ten day elephant hunt and it took two days to complete. That sure made a difference in the Margins for the outfitter.....then started the add ons just like extras on that Mack Truck. Ha! Giraffe here Nyala there!
Anyway you asked a good question for sure that can be dissected many different ways.

 

[dmyers]

True. But you didn’t ask about supply and demand in the original post. Brickburn gives a wonderful example of what over supply has done with the Sable in South Africa (farm raised animal vs free range) Over supply and less demand has brought the price down to a point of equilibrium so to speak. Lower prices on the farm than a few years ago so less margin but now a few more being sold. Still takes a lot of those impalas taken to equal the one Sable.
And The outfitter would sure rather a hunter take the Sable vs the impala.
Booked a ten day elephant hunt and it took two days to complete. That sure made a difference in the Margins for the outfitter.....then started the add ons just like extras on that Mack Truck. Ha! Giraffe here Nyala there!
Anyway you asked a good question for sure that can be dissected many different ways.

Well said. I quite like the trophy fee system. It allows "building" affordable hunts for most hunters - if they willing to make a few sacrifices and save up.
I have also been blessed so far with outfitters/PH's that seem just as happy hunting impala as kudu. Thanks for the input.