TOOL - How to Price a Horse for Sale
Most stables price horses based on gut feeling or the original purchase price. But if you're not tracking your costs, you're not tracking your profit.
Let’s fix that.
Why “Bought for 10K, Sold for 30K” Is Not a Margin
Here’s what actually eats into your margin:
- Training and boarding over time
- Health care and vet bills
- Show fees and travel
- Commission on the sale
- Marketing costs (photo, video, ads)
- VAT or taxes
- And the one thing everyone forgets: time
This is your Cost of Goods Sold (COGS) — the total cost to prepare a horse for sale.
Margin = Selling Price – Total Cost
Two Ways to Price: Cost-Based vs. Value-Based
There are two main ways stables price their horses:
1. Cost-Plus Pricing
You calculate your total costs, then add a markup (e.g., +30%).
✅ Safer
❌ Doesn’t always reflect market value
2. Value-Based Pricing
You price based on what the horse is worth in the market (pedigree, results, potential), regardless of your costs.
✅ Often higher profits
❌ Only works if you really know your numbers
Pro stables often combine both: know their base cost, then price up based on perceived value.
Don't Forget: Income Can Offset Costs
If a horse wins prize money while in your care, that should count as offsetting revenue.
For example:
- Total cost: €25K
- Prize money: €5K
- Net investment: €20K
Commission Is a Real Cost
Often a commission is paid to:
- A trainer or rider who helped with the sale
- A selling agent or broker
Don’t forget to include this in your final cost breakdown.
💡 Tip: Use % or flat fee, but always calculate it before finalizing your asking price.
Profit Is in the Details
Knowing your true margin starts with better tracking. Equihub helps professional stables log:
- All health & vet expenses
- Training and nutrition
- Boarding and show costs
- Sale status and commissions
You’ll go into every negotiation with confidence—and data.
🎁 Want to Price Smarter?
We built a simple Excel calculator to help you calculate your horse’s sales price, margin, and profit in just a few clicks.
✅ Plug in purchase + costs
✅ Add prize money and sale price
✅ Instantly see your profit