There are differences in how every farrier approaches his or her business. Still, the most common and effective way to manage the finances of a farrier business remains knowing what it costs to shoe a horse.

The differences come out in the individuality of a practice. Not everyone works with the same types of horses. Some farriers may have more trims than shoeings — maybe no shoeings at all. Your location will greatly influence what you can charge clients, as well as many of your expenses. There are several more variables that differentiate farrier income and expenses.

Like other farriers, Pat Broadus uses this evaluation. His shoeing practice is based in Shelbyville, Ky., focusing on the hoof-care needs of racehorses, Thoroughbreds on the farm and sport horses.

Broadus says it’s important to take a thorough look at a practice and be honest about what different elements affect it. This includes evaluating your cost per horse.

The Evaluation

The chart on the next page references the costs measured in Broadus’ practice, based on a 6-year average. Pat Broadus adjusted the chart for 140 horses. The Broadus brothers do more horses than that, but he wanted an analysis that would apply to 140 horses shod all the way around, working out of one truck, as it would be more similar to typical farrier practices.

Remember that this chart is used to understand the cost structure, not to compare why one practice costs more per horse than another.

“This is what it costs for us to do our business, not what it costs for you to do business,” Broadus reminds. “This serves as a guideline for you. Some of your costs will be more than mine. Our travel expenses are typically higher because of where we work. Just be honest and really look at what it costs you to keep horses in shoes.”

The biggest obstacle in doing this exercise correctly is a failure to identify costs. Going through this chart, he finds there are things farriers forget about or ignore that still cost them money in the daily operation of their business.

“Do you factor in your continuing education? Do you factor in having to drive to a barn to tack on a shoe?” he asks.

The Actual Costs

Broadus walks though some of the variables and considerations that affect the cost of the products and services. Some are more straightforward, so additional insight isn’t needed. Some items are very specific to their multi-farrier practice, so they aren’t necessary to consider relative to your practice. Use the chart to the right as a reference to his expenses, but don’t expect that your expenses are the same.

Shoes. “It doesn’t cost me that full amount for only a set of shoes,” he says. “That includes specialty shoes and pads. That includes lost shoes or shoes the trainer wanted to try but they didn’t work, so we threw them away. How many shoes do you have in inventory that you are never going to use?

“In a true business world, if you have something sitting on your shelf for more than 3 months, it’s considered a loss because you could have put those dollars into something else that would make you money.”

Rasps. “I push a rasp pretty good to get more out of them,” he says. “But last winter I dropped two that broke because of the cold temperature. One of those only had one horse in it. You aren’t going to get 60 head out of every rasp.”

Nails. “That includes the nails I spilled in my truck, left at a barn, became rusty or bent driving them,” he says. “If you drove them on a lost shoe, you used them.”

Miscellaneous. “There are many more things you may need to add. This is where you really have to examine what you use in your practice and what is on your truck or stored in your shop,” he says.

Tool replacement in my box/truck. “If you have a helper, how are they using your tools? Will you need to replace them sooner?” he asks. “How well do you treat your tools?”

Fly spray. “I use fly spray year-round — not everyone else does,” he says. “How many farriers have left a full bottle of spray at the barn. How much have we spilled filling the bottle? How much has leaked out?”

Rent. “In my practice, we travel to Louisiana and rent a place in New Orleans,” he says. “We rent a place for 5 months and also have the expenses of utilities. You may not have rent, but do you use hotel rooms?”

Workman’s comp. “This is the cost for someone who helps more than pulling and finishing,” he notes.

CLICK TO ENLARGE

Rig. “This is just to have that cap on my truck,” he notes.

Truck. “Farriers need a reliable truck,” he says. “Our business is customer-service based, so we have to run up and down the roads. Especially with performance horse clients, I can’t have the delay of breaking down between Kentucky and New Orleans.”

Mileage. “This is based off what the government gives us to maintain our truck, which today is about 57 ½ cents per mile,” he says. “This includes your tires, oil changes and anything else in the maintenance of your truck.

“Think about all the trips you take. What did it cost to go to the supply house or hardware store? Did you take your rig to a continuing education event? Where are you driving to fix a shoe?”

Advertising/marketing. “We’ve sponsored jumps at shows and other events. We’ve hired a guy to manage our Facebook page,” he says.

Per diem. “If my team travels to Chicago or New Orleans, that is the average for everyone in our practice,” he says. “Everyone in our practice gets a per diem.”

Retirement. “Not everyone requires the same amount. Where you choose to retire will have a big influence on that cost,” he adds.

By going through the exercise of evaluating your costs, Broadus says you can take the next step to build the business you want.

“This chart isn’t advice on how you should run your business, but is something to look at. Use it for your practice and be true to yourself,” he says.