I saw a post on the Breeders forum "Why breeders don't always post sales prices on websites" thread which basically gives an imaginary scenario of a trainer's markup:
A trainer buys a horse for $45,000, puts in a couple months training and showing and then resells the horse adding all the invested costs and includes their 15% commission for about $60,000. Sometimes there will be multiple commissions involved.
I guess that the trainer would be reliant upon selling the horse within a very short time frame (2 - 3 months) in order to make back their investment. What happens if the horse does not sell quickly and they have them for many months, do they keep adding the $$ in order to avoid any loss? Wouldn't this make the same horse way overpriced?
I have experience with this situation (as buyer) and found the commission to be way higher than the above scenario on more that a couple occasions. I'm wondering if this is a common occurrence or if it's just my experiences?
I'm sure this applies to every discipline but I'm wondering if this is more prevalent in the hunter/jumper world. I've noticed that many of these horses are incredibly expensive, often times more so than a quality dressage horse.
It is my understanding that a horse need to be sold young (in-utero - 5 years old) in order for the breeder to actually make a profit. After that time, if the horse is in active training/showing etc., I'd think that the margin would start to go down. Curious to what others opinions are.