Articles
By Kim Andresen

At first Wayne Buttolph visited the Phillip Foster Farms Alpaca Excursion in Eagle Creek, Oregon and fell instantly in love. That day they went home as proud new Alpaca owners and Stonyridge Alpacas was born. With the goal of a profitable business by the end of five years, they purchased $100,000 worth of animals the first two years. Animal sales through the end of year three have returned 50% on those original purchases, and with ten cria expected this year (all with top-notch bloodlines) the hope is to be showing a profit well before the end of their 5-year plan. Theirs is not exactly a get-rich-quick story, but it certainly is one that most small business owners would certainly love to call their own. The secret to their success is simple: a well-thought-out and direct business approach from the start.

That first few weeks after Linda and Wayne bought their first alpacas, the Buttolph’s spent time not only getting to know their animals but also learning everything they could find about the care and breeding of alpacas. During this beginning phase, they did lots of research, talked with countless alpaca owners and attended several alpaca shows.

Wayne and Linda knew that putting together a thorough and careful business plan in the beginning would be one of the keys to their success. Their plan, which started with an initial investment of 100K (home equity) called for animal additions, breeding, and marketing. This was to be implemented over a five-year period with the hopes of the business becoming self-sufficient. Once the business was standing on its own, it was their aspiration that one or both of them would quit their day jobs. The plan required great bloodlines, good marketing, and a willingness to sell animals quickly to increase the quality of their herd at a fast pace.

Breeding Philosophy

"We see four approaches to the kind of animal you can start your business with," says Linda. "You can: 1) start with average proven females and breed them to higher-quality males, 2) get high-quality young females and wait to breed them only to high-quality males, 3) buy high-quality boys and use them as herdsires for income from stud fees, or 4) buy good quality weanling females, invest growing time, training, show ring exposure, and market them as bred maiden girls." They chose the first option with average females, subsequently purchased some high quality young females, and have been uncompromising in the commitment to working with only the very best herdsires.

While Stonyridge doesn’t have a primary herdsire of their own, they focus on a wide variety of males from other select farms to complement their breeding program for a variety of colors. "We like to play with genetics a bit, and the surprises of colors we can get is exciting to us," says Linda.

When purchasing animals Linda and Wayne certainly look for that oh-so-important sales quality: cuteness, and of course high emphasis on fiber characteristics, but their main focus is on conformation and great body mechanics (straight legs, wide bodies with good balance, and proper alignment of their bite.) When asked why that is so important to them, Linda said, "Pregnancy is hard work for females and producing babies each year for 12-15 years gets hard on their bodies, so they need to be strong and have good body mechanics before you breed them."

Marketing

"I can’t say enough about the importance of having a good website and keeping it updated" says Linda. "If your site isn’t up to date – whether it’s an animal’s breeding records, history or fleece quality, people may not trust you if you can’t keep good records," says Linda. Stonyridge has two websites – one at www.stonyridgealpacas.com and an Alpaca Nation site. Linda says that these two sites have been one of the major keys to success for Stonyridge’s marketing program. "Nearly 75% of all our sales in 2003 were to folks East of the Mississippi. "Some of the leads were from the Alpaca Nation site, but the first thing I do when someone contacts me is to refer them to my www.stonyridgealpacas.com site. 50-60% of the people who contact me end up buying an animal," says Linda. We’ve sold animals to people in Kentucky, New Jersey, North Carolina, Montana, Kansas and Ohio," says Linda. "We are fortunate to have the most incredible bloodlines in the United States right here on the West Coast, and access to those makes breeding easy here, so the marketing potential to folks on the East Coast shouldn’t be overlooked."

In addition to having the web working for them around the clock, they attend 3-4 alpaca shows per year and 2 or 3 fleece shows. Linda and Wayne see going to the shows as an opportunity to get expert input on their animals. "Shows are not necessarily a big sales event for us," says Linda. "The networking with other ranches is invaluable and the opportunity to see the progeny of some of the herdsires we’re considering breeding to is integral to us" says Linda.Pricing,

Value and Tax Advantages

"Pricing and selling is a big issue for us as well. We price our animals at what we think is a good value for the animal’s quality," says Linda. "Our philosophy is that not every animal should be for sale – and if you have all of your animals for sale, but have high prices on the animals you really want to reserve for your breeding program, then people perceive your farm as having animals overpriced for their value," says Linda. "I believe alpaca buyers are savvy consumers, often are doing their homework, and deserve an animal that will give them a valid return on their investment."

"And don’t forget farm deferral," Linda says. "The tax advantages are a reality and important to calculate into your business philosophy."

Looking Forward

"Our goals in 2004 are to focus on some of our facilities. With ten new cria expected this summer and fall, we will need some new buildings and sheds to accommodate our farm growth," says Linda. "We also plan to work on our show display to make us a little more visible as a breeder, and we will continue to add on to our website – progeny records, a coming attractions page, and much more" adds Linda.

"Also, on August 14-15 we are fortunate to host Marty McGee, who is one of the most renowned trainers in the United States. She will be coming to do a two-day training seminar at our farm," says Linda. There will be general management seminars, some hands on work with animals in haltering, leading and walking. Both llama and alpaca owners are welcome. People are encouraged to bring their difficult animals to the seminar to work with Marty during the weekend event. "The main reason we are hosting this seminar is that we really believe in Marty’s techniques - they have worked for us with several of our animals. Well-behaved animals are important in our breeding program, and it makes it so much easier to care for them when they work with you, not against you" says Linda.

Conclusion

"I feel very positive about our future," says Linda who recently was able to quit her day job in late 2003. According to their initial 5-year-plan, this is 2-3 years earlier than they expected. "We are firmly hooked on the alpaca business and would recommend it to anyone."