DRILLHAM's Raff Angus has appointed a 'fee for service' manager to facilitate its female sale on March 26.
The move to appoint Victorian based sale manager Michael Glasser to conduct the auction and settle the sale's accounts outside the traditional livestock agency system is believed to be a first for a Queensland stud stock sale.
Some agents are said to be disappointed with the move, privately expressing their views that 'fee for service' sale managers represent a major threat to their business.
Elders Toowoomba agent Blake Munro, who had a long association with the Raff Angus enterprise, said he had "no comment" when asked how he felt about the decision.
Industry sources have told Queensland Country Life that other major Queensland studs are considering the switch to sale managers, and will watch the outcome of the March 26 sale at Raff Angus with keen interest before announcing a change in direction, perhaps as early as this Spring.
Raff Angus co-principal Andrew Raff said the decision to move to a sale manager was a difficult one, but was made in the interests of equity and progressing their business.
"This move is not a reflection on past performance but rather a progression to a more efficient and equitable approach to marketing our cattle which places all agents on a level playing field," Mr Raff said.
"There are numerous private and small agents, as well as the traditional larger ones, who have been purchasing cattle for clients from us who we feel are not adequately compensated under the current system.
"We believe this new arrangement will be fair to all agents and adequately reward those who make an effort to bring clients to our sale."
Mr Raff said under the system they have adopted, the sale manager will not operate as a commission agent but will instead manage and conduct the sale. He said Auctions Plus and phone bidding facilities would still operate.
"We will now offer any agent, no matter how large or how small, a five percent commission if they attend the sale and bring or purchase on behalf of a client," he said. "Two percent will be available to those agents who introduce potential purchasers but do not attend the sale."
Former Elders agent Michael Glasser started his business Total Sales Management in August last year, and estimates he will have conducted more than 50 sales across NSW and Victoria by the time his 12 month anniversary ticks over on August 20 this year.
The Raff Angus female sale next month will be his first assignment in Queensland, requiring two auctioneers and five ringside staff brought from Victoria and two local contractors to manage the sale day.
He said his style of operation, where he is paid purely for selected services, provides greater control for vendors, especially those who are bigger in size and reputation.
"It's not for everybody, but for studs that have a large client base and are well in touch with what their clients want and manage that accordingly our service is a very good fit," he said.
"I guess we offer flexibility. Vendors only pay for the service they need. We can do everything through the preparation of sale catalogues and marketing through to auctioneering, but at the end of the day the vendor is in control and only pays for the services they require."
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