So Your Client Wants a Pony: Preparing them for their first horse
With the holiday season upon us, many parents are considering buying their child their first horse or pony. No doubt, if they train or lesson with you, they have brought you into the process on some level, or at least let you know they’re thinking about it.
While exciting for our clients and students, It's not uncommon for parents to be unaware of the commitment and costs associated with such a big gift. To increase the likelihood of success and manage expectations, below you will find a list of considerations to bring them along in the buying process, along with an expense list I recommend filling out based on your geographic area and program to help your client grasp the overall impact of their purchase and reduce sticker shock in the coming months.
Pay Attention to Market Trends
Horses are considered a luxury item and as such, their prices can be highly susceptible to market influences. Additionally, age, level of training, breed, experience, breeding, and temperament can all affect price, too. Whether you start with a budget number from your client or a “perfect horse” description, take a look at the market in your area to manage expectations either on what the price will be or what they will get for their price.
Assess Current Skill Level and Goals
Dovetailing from market trends and considerations, take into consideration your client’s current skill level and goals. It’s not uncommon to have some give-and-take, for example a more green horse or older horse for the budget price may mean more cost in training or maintenance down the road. Consider your rider, where they are at in their riding journey and development, and what their goals are. Unfortunately I have seen a lot of well-meaning professionals and parents buy horses meant to be a stretch for the rider to grow into. Without having the means (financial or skill) to back it up, this can make for a pretty unpleasant experience for both rider and horse. If you have a rider that is only able to ride once a week, for example, perhaps an older horse that has more experience but may need some maintenance is a better fit than a green horse they aren’t yet equipped to work with on their own in between lessons.
Introduce The Buying Process
Buying a horse is a unique experience for the uninitiated. Communication is key. Help your client understand what the buying process looks like and the role you can take in it by walking them through what the typical process and where you can support them. Here is a rough outline to start from (the order may differ slightly dependent upon the nature of your program and your client’s needs):
Determine what the client is looking for in a horse and compare this to the current market to manage expectations.
Find horse sale listings (reach out to your network, online sales pages, social media groups, etc.)
Review listings together and determine up front questions to ask the seller
Schedule a time to see and ride the horse (factor in travel time, too)
Go see the horse
Determine if client wants to move forward with the horse
Schedule and conduct a pre-purchase exam (PPE)
Determine if client wants to move forward with the horse
Plan, schedule and go to any additional trials (eg. A second trial at new location, in-barn 7-, 15-, or 30-day trials, etc)
Determine if client wants to move forward with the horse
Purchase horse
Insure horse (if applicable)
Transport horse to your facility (or your client’s home, etc.)
It’s at this stage that I recommend hashing out the details and managing expectations with regard to whom will own what part of the buying process.
Developing Your Contract
Things to consider:
Will you be looking for, reviewing, and sending prospective horse listings to your client or telling them where they can go to look?
Will you be going to trial rides and/or pre-purchase exams with them? Riding the horse in a trial?
If you are doing the legwork, make sure that your contract takes into consideration the time associated with doing so via a flat rate, commission, or by time; or some mix thereof. Don’t assume that if they are looking on their own they will share the listing or process with you; clarify. Having a new horse owner suddenly reach out saying they have bought a horse that isn’t the right fit is a lot harder to deal with in the long run than developing this level of understanding up front.
Flat Rates, Commissions, and Time Pricing
The horse buying process can change rapidly. Consider whether your contract can manage multiple scenarios.
For example, if you only have a commission structure and your client goes out and buys a horse on their own, despite your helping them find and potentially even going to trial other horses with them, you will be out of luck in getting paid for the time spent. That being said, if you have a commission percentage and your client buys at a low price point, your hourly rate for time spent on the process may also be low or vice versa. This give-and-take can also play a factor in flat rates, depending on the actual hours spent in the process.
If you only have a time-based pricing model this variable factor (time) can get quite steep for clients, causing them to shy away from the buying process, buy a horse earlier in the process that may not be the right fit, or choose not to loop you with your valuable expertise in when they need to, in an effort to keep hourly costs down.
Many trainers and instructors look at the buying process for new horse owners as a long-term investment; while the hourly price point may not be huge, there is a high likelihood of a boost in overall spend in your program by the client as a result of their new purchase. You will need to consider the pros and cons of these various scenarios for your program and client circumstances.
Manage Up Front and Ongoing Cost Expectations of Horse Ownership
We all know that oftentimes the cost of purchasing a new horse is the “cheap” part of horse ownership. To prevent surprises in the buying and ownership process, manage expectations up front.
Buying the Horse
While most clients have a number in their head, they may not fully understand the implications of what the actual cost of buying a horse is. Do they have budget for a horse with a separate budget for pre-purchase exams and your commission, or are all of those factors rolled into one overall budget? Consider that the client may be faced with conducting multiple pre-purchase exams and horse trials if the horses do not pass these stages satisfactorily. Goodness knows, when I was looking for my next show partner a few years back it took about a half dozen prospective horse trials and three PPEs to finally find one that was suitable for my needs. That process really cut into my overall budget and led to my ultimately having less capital to purchase the horse I wanted. These are important variable elements for your client to understand, as what they are looking for may need to shift accordingly.
Depth and Goal of the Pre-Purchase Exam (PPE)
Pre-purchase exams (PPEs) can be as simple or in depth as a client wants, but the costs associated will vary wildly. The PPE is a space to determine the horse’s current health and prospective wellness risks. The level of detail is limited by the client’s risk tolerance and their budget. With a first time horse buyer it is important that we help them understand what this means, particularly as it applies to their riding goals. They can do a basic wellness & flexion exam, x-rays, bloodwork, ultrasound, and may even have additional test needs come up during the course of the PPE exam, dependent on risk level and comfort. Some horses may even “fail” the PPE (when the risk is not within an acceptable tolerance level for the client). Then it’s back to the beginning of the buying process; however the veterinarian who conducted the PPE still needs to be paid for their time and services.
One-Time, Monthly, Recurring, and Ad Hoc Costs of Horse Ownership
I have put together a (non-exhaustive) list of prospective costs that your client would benefit from being aware of, to manage expectations. I left out actual costs since they differ widely by area (eg. Is hay grown near or by you or trucked in? Can it be bought in bulk or not?) and circumstance (eg. Is the client in a position to buy new or used tack? Will they be boarding with you or keeping their horse at home and hauling in for lessons?). Take this list, add or remove items so it better suits you, and include the costs expected for your program, then total each section. In some cases a range, as opposed to a hard number, may be appropriate. Make sure the ranges are reflected in the totals for each section.
Horse Ownership Cost Sheet
Purchase Costs:
If your client has a total budget, work from the bottom up. If they have a horse-only budget, work top down.
Horse Purchase Price - $
Pre-Purchase Exam(s) (PPEs) - $
Commission(s)/Search Fees - $
Fuel & Travel Expenses to see horse(s) & be at PPEs - $
Transportation (to get the horse home) - $
Total Purchase Costs: $
Monthly Expenses:
Board - $
Lessons/Training (this number may differ if the horse and rider will need more or less instruction or training) - $
Hay (if included in board but extra gets charged, include here) - $
Bedding (if included in board but extra gets charged, include here) - $
Additional Utilities (for horses boarded at home) - $
Blanketing (if not included in board) - $
Feeding Grain (if not included in board) - $
Turnout (if not included in board) - $
Grain – $
Supplements – $
Total Monthly Expenses: $
Additional Recurring Expenses:
To give your client a picture of the annual cost of these expenses, take the one-off cost of each line item and then multiply or divide based on frequency to get the annual cost. (Eg. 6-week farrier services would be multiplied by 8.67 and 8-week farrier services would be multiplied by 6.5.)
Farrier (every 6-8 weeks) – $
Annual or Bi-Annual Vet Visit (wellness, blood work, fecal egg count, vaccinations & Coggins) – $
Dentist (every 6-18 months dependent on age & quality of teeth) – $
Worming (4-6x annually) – $
Saddle fitting/adjustments (frequency dependent on age/life changes) – $
Chiro/Bodywork (frequency dependent on age/workload/overall health) – $
Blanket wash and repairs (at least annual) – $
Insurance (annual) - $
Medical Maintenance (injections, prescriptions, etc.) - $
Horse Show Fees - $
Fuel (to attend horse shows, haul the horse, etc.) - $
Facility Maintenance (if horse is kept at home) - $
Total Recurring Expenses: $
New Horse Ownership Expenses:
New Tack (saddle, bridle, pads, girth/cinch, boots, etc.) - $
Horse Care Supplies (grooming & bathing tools, fly spray, etc.) - $
Equine First Aid Kit/Supplies - $
Blanket(s) - $
Buckets & Containers - $
Show Gear - $
Truck & Trailer - $
Facility Set Up (if horse is kept at home) - $
Total New Horse Ownership Expenses: $
Ad Hoc Expense
Emergency Veterinary Costs - $
Take this time to sit down and talk with your client about the level of emergency veterinary costs they are willing to pay for their new horse. A swollen leg from a cut can look very different from a suspensory tear or a colic surgery. There may come a time when veterinary intervention is necessary and you won’t be able to get ahold of your client. Best to know what their threshold is for their new horse's care before you need to make the decision for them. I recommend getting this in writing, signed, and reviewed/updated at least annually to ensure all parties are on the same page. Consult a lawyer who specializes in equine law, like Rachel at Equine Legal Solutions, and/or talk to your vet about whether they keep this type of information on file to ensure you are not held responsible for vet bills should you ever find yourself in such a situation.
Now on to the fun part - Happy Horse Shopping!
Hugs and Happy Riding!
Kristin
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Learn more about author Kristin Bowers.
Blog posts from Equestripreneur are not meant to replace individual professional advice, which will best inform personal circumstances.
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