What Does It Really Cost You To Shoe A Horse?

While a farrier’s top priority may be the care of hooves, the farrier must be equally concerned with earning a living and dealing with the business aspects of the profession.

So, what does it cost to trim and shoe a horse? The obvious answer includes the price of shoes, nails and other items like adhesives or pads. Many farriers fail to reflect on how the prices that they charge are actually determined.

Troy Kerr, who handles about 1,500 shoeings per year in the Pueblo, Colo., area says he knows it will cost him $48 to shoe before he even gets to the horse.

That includes his expenses for supplies, equipment, gas for his truck and other things like life, health and liability insurance and a retirement plan.

“The only time we can make a profit is if we have our logistics right,” Kerr says. “Obviously, farriers in different areas have to charge differently than in others, but you have to figure out what it’s going to cost you per head and go from there.”

Who Sets The Price?

Clients don’t tell farriers what they will pay for horseshoeing services. Farriers set the prices for horseshoeing services, Kerr says. 

“We tend to set prices for the wrong reasons because our pricing structure is limited by our own narrow-minded thinking,” he says. “Farriers don’t think highly enough of themselves or the service and expertise they provide.”

The limited thinking gets in the way of establishing the true value of horseshoeing.

Kerr, a 28-year veteran farrier, says it’s important to keep in mind the total amount of expenses it will cost you to shoe a horse.

“At the beginning of the year, I take all of my expenses for the business and the horses I shoe and I divide the two,” Kerr says. “That should tell you your base price for shoeing one horse.”

Look at this issue objectively to assess the true value of horseshoeing in the marketplace.

Selling Points

When owners are looking to hire a farrier, they look for individuals that meet a certain level of education and experience. These factors include:

• Schedules and keeps appointments.
• Ability to withstand prolonged periods of physical strain.
• Capable of financially tracking the business – revenues and expenses.
• Be comfortable with the element of high risk for personal injury.
• Must be an experienced horse person.
• Possess good customer service skills.
• Handle emergency calls.

Occupational Hazards

Professional athletes are similar to professional farriers in that they are compensated because they are good at what they do and also require a high level of physical endurance. 

This means some farriers and most athletes can usually only perform professionally for a relatively short period in life. A farrier’s body often breaks down prematurely due to the hazards of the business.

How do farriers put a price tag on their health, which is being compromised by the job they perform? Why shouldn’t health be considered in determining the value of horseshoeing in the marketplace?

Many horseshoers regularly receive treatment from the following professionals:

• Medical doctors
• Chiropractors
• Physiotherapists
• Massage therapists

Some even have surgery as a result of their work. All of these work-related injuries and strains are going to affect their health and their quality of life as the farrier gets older.

“You can shoe 10 horses a day if you want to make lots of money, but you won’t be shoeing 10 horses a day for the rest of your life,” Kerr says. “You should be able to make a living shoeing 3 to 4 horses a day.”

Farrier Finances

The farrier business, like any other, has two major components that dictate how profitable the farrier is: income and expenses. There are both fixed and annual costs associated with the business.

Expenses in this business are very high. 

“I have a flat price I charge and then I decide what the horse needs,” Kerr says. “Sometimes a horse only needs to be trimmed. If a horse needs pads, I put pads on.

“I’m doing what the horse needs before it’s needed sometimes because then we’ll all be ahead in the end.”

Too many farriers fail to recognize all the factors that add to the costs of shoeing a single horse. To be competitive, a farrier needs a number of specialized tools and equipment to perform the daily work. The tools represent a fixed cost to the business.

Since tools will be used over a number of years, the actual cost of tools must be spread out over a number of years to reflect the annual flow of services they provide to the business. 

Variable Costs

Variable costs consist of items like shoes and nails that can fluctuate in price and/or quantity during the year based on the number of horses you do.

Prices for items such as clips, rocker toes, rolled toes, heel calks and pads have to be added since there is no accurate way to estimate the quantity utilized. Typically, shod horses need about three sets of new shoes per year and six resets of those shoes, averaging two resets between each new set of shoes.

Be sure to keep accurate 

financial records so you can develop representative fixed and variable costs for your business based on your finances. This will provide proper economic analysis and managerial decision making in the future.

Overhead Costs

Additional fixed costs include overhead costs related to your administration and management of the business. Items such as mailing invoices and paying bills, along with keeping track of taxes and scheduling appointments, must be included in the cost of running your business.

If you choose not to perform these duties, someone else will have to be paid to do them. 

You will have to supervise them and still conduct the financial analysis of the business.

Other Costs

Some cost variables not often taken into account are the different sizes of shoes and nails suited to different jobs (drafts vs. ponies), but also your preferences in brands. The need to carry inventory with an array of shoes and nails will increase the costs to the business.

You will have horses that lose shoes, which results in added expenses. This also increases the consumption of shoes and nails, adding to your overhead costs.

Ask Yourself These Questions

In a few years, when you debate whether to raise your prices, ask yourself these questions:

• Who should pay for the deterioration of my musculoskeletal system and how this work is compromising my health? 
• Who should pay for upgrading my shoeing skills and education?
• Who should pay for my insurance and retirement plan? 
• Who should pay for increase in my fixed, variable, overhead and other costs that are rising each year?

Answer these questions honestly and you will begin to see that the value of horseshoeing in the marketplace is a lot higher than currently recognized by many of those in the farrier profession.

“It’s really tough because most farriers in general don’t treat this as a business,” Kerr says. “They get money every day and it’s too easy to see that money every day.

“The business part of this is what makes us have the balance in our lives.”

While all farriers associate shoeing with horse work, the behind-the-scenes job of running a business is equally important.

Ultimately, the only way customers are going to consider farrier work valuable and hold them in high regard is if farriers first recognize the true value of the services they provide them.