Equine Economy during these Turbulent Times
Each industry in the United States has been affected in one way or another. It has been quite the time for changes in the equine industry as well. From the Kentucky Derby being postponed to an everyday riding facility, everything is changing. This is not a time to sit in fear though, take action and persevere forward!
The restrictions have created a stagnant moving cash flow, but there are ways to get creative with getting cash flow moving again. Get creative with what can make your business move forward with said technology. One example, make riding videos live and answer questions along the way. Yes, it is a scary concept but this fear will need to be overcome by persevering.
With the virus, it is without a doubt that America's GDP (Gross Domestic Product) has taken a hit. The unemployment rates are getting higher with places being closed (some barns, feed stores, and tack stores included) creating a ripple effect for consumer spending. A high percentage of the equine population is considered a luxury item. What that means is; the horse is not a need to most Americans (a nonessential item). People spend their disposable income on having the luxury of owning that animal. Looking from it as a pipeline effect, it starts with having disposable income from that person's career, job, or a source of income. Once that stops flowing in or decreases in inflow, then the factor of needs comes into place (aka toilet paper, for most). Then any available funds after that are called "disposable income." Not saying all have lost their careers/jobs, but most Americans are looking at the negative outcome of what can happen because most people are driven by fear.
With the income pipeline slower, it has made selling horses more of a challenge. Having the unknown combined with disposable income changing, it creates a new outlook within the equine industry consumers. Changes are being made, one's self-interest take president mores than others. Don't forget about the others that are caring for "luxury items." They may be low on the totem pole, but they are people just like you and me but don't forget we are all in this world together.
Now to get off my soapbox; having events closed down for showing or racing has created 'missed opportunities.' The same thing happened in historical events in the equine industry. One example is the Great Depression. Like now, horse racing was frozen for us, race tracks were closing and only a few stayed open during the depression. There were scandals that triggered the legislation to outlaw betting within the racing industry. Then the equine industry went to the state legislatures during this time because states needed a source of revenue coming in, things were spiraling downward. In the 1920s, the racing industry and state legislatures made a deal on bringing back betting within the racing industry and they would tax on racing revenues, bring back betting in the racing industry.
Another story is people were having a hard time paying for fuel for their automobiles during the Great Depression. So they invested into horses to pull their automobile around. This opened the pipeline for the sales of horses, feed stores, and stables to keep the animals.
Doctor Bridge and Laura Allyn of Alberta, Canada riding in a "Bennett buggy"—a car with its engine removed, pulled by horses. Popular during the Great Depression, when many Canadians could not afford to buy gas, Bennett buggies are named sardonically for Canadian Prime Minister R. B. Bennett, whose policies failed to pull Canada out of the depression.
According to the American Horse Council Foundation and Deloitte; the horse industry contributes approximately $39 billion in direct economic impacts to the US economy and provides 1.4 million jobs to the population that has been recorded. So to all the equine people out there, don't give up! Saddle up and leave fear in the dust!
Remember we are all in this together! Get creative within your equine business and persist forward. Benner Stride is here to help fellow equestrians during these turbulent times, don't be afraid to reach out and join the Equidae Family! Join our Facebook Group The Equidae Business Family to discuss topics such as the effects of the horse economy with fellow equine members.