division of profits

[madness]

One day we hope that the goats will actually be turning a profit from cheese sales. We are fairly close and excited to see that day come. The labor involved in making the income is divided into two main tasks: caring for the goats (feeding, milking, everything) and then cheese making. The two jobs are done by different people.

Right now, we set it up that the profits are split 50/50 between the goatherd and the cheesemaker. I'm just wondering if anyone else has this kind of division and what you think is an equitable split between the two tasks. Remember that these are true profits - after all the things like feed and cheese ingredients are paid for.

Any ideas?

[Goat Servant]

Sounds great, I'd sure like to hear more too.

[Vicki McGaugh TX Nubians]

I do it differently. I sell my Lonesome Doe Nubian milk for $8 per gallon to Nubian Soaps.....and to others, this $8 per gallon pays the girls feed bill for the year and most of their upkeep...my salary for the year comes from kid sales, also lets me show and appraise etc.. Nubian Soaps uses this milk to make soap and pay my salary, pay for labor during busy times.

I want a dollar value on breeding stock sales and the sale of milk all going to the goats, because it can become very easy to devalue their worth.

It's likely splitting hair, but for me I want them kept seperated becasue if your cheese part of this is the part not making a profit, it doesn't mean the goats necessarly are at fault. Pinching pennies off the back of the milking doe herd is done way to much. When it's likely marketing, not adveritising or not choosing product that sells readily even though the profit is more about volume than price per pound, like cherve. Vicki

[madness]

Oooohh....you bring up some great points Vicki! I didn't even factor in things like kid sales, etc. Hmm. I like the idea of the cheesemaker buying the milk from the goatherd. Even if they are the same person, it makes perfect business sense to separate since those really are two separate enterprises. What would we do if we added on soap making? Split 33/33/33? Doesn't make sense anymore.

Thanks for the ideas! Off to reconfigure the business plan a little! Anybody else have any tips?