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Informed Discussion of Beekeeping Issues and Bee Biology

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randy oliver <[log in to unmask]>
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Informed Discussion of Beekeeping Issues and Bee Biology <[log in to unmask]>
Date:
Sun, 19 Feb 2012 07:24:17 -0800
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> I agree with Bob's excellent advice.


I've spent over 30 years building my bee business, but I made it pay for
itself all the way, so had to build it for the first 20 years while I ran
other businesses.  You will not make money so long as you are expanding.
 The moment that you stop expanding, the money should start rolling in!

I suggest that you decide what you want your annual income to be, and then
work backwards to see how many colonies you need to run.  I can make a
modest living in my area on about 250.  With my two independent sons coming
on, we need to ramp up to taking 800 to almonds for us to all reach our
target incomes for the year.  We have no desire to run a single colony more
than necessary, as we all are big into enjoying our lifestyle.  This means
that we must peak at about 1200 colonies in August in order to run 800 to
almonds in February.

I'm the world's worst businessman and have made every mistake in the book
at least three times each!

But my bee business is now profitable, and my two sons and I are making
most of our livings off of it.  Next season we should be rolling it in
(this is what farmers say every year--get used to it).  But should happen
in reality as I've already purchased in advance most all the equipment
necessary, have completely paid off debt, and have markets that are begging
for three times the amounts of products that we can produce.

My business plan for the year accounts for where every single frame of bees
currently in almonds will go--nucs, packages, honey producers, increase for
almonds next year, etc.  Plan everything very conservatively, as Nature has
a way of screwing up your plans.

>Commercial beekeeping takes a strong commitment. When the bees need tending
other commitments many times are passed over.

This is the absolute truth!  You must prioritize your bees over all the
other things in life that cry for your attention.  Your bees must always
come first!  Nature takes no excuses, and if you are a day late or a dollar
short, you will have to wait until next season for another chance.

Focus on the few things that make or save you money:

Live, healthy productive colonies make you money--they are your asset
(singular).  Everything else, including the hive bodies, extracting
equipment, and trucks are liabilities.

Spend your life as a slave to your bees--cater to their every need, so that
they can be at their most productive.

The other thing that makes you money is salesmanship.  Get top dollar for
your products.

What kills you is costs--equipment, maintenance, interest, insurance, etc.
 Minimize costs.  We cobble most things together from used equipment and
machinery.  But there is a trade off if the time that you spend on
maintenance detracts from the time that you spend with your bees.

There are many possible income streams from a bee business.  Determine
which ones you most lenjoy doing and that you are most profitable at.
 Focus upon those, and don't get distracted by the rest.  Don't waste your
precious minutes trying to produce a few dollars worth of royal jelly or
pollen if it is not extremely profitable for you to do so.

As my buddy Keith Jarrett says, get out you sharp pencil and figure out how
much you make per hour for any aspect of your business.  Let go the ones
which don't return at least $75 per hour (some will return several times
that).  Certain aspects of beekeeping can be very profitable, but are
largely dependent upon your market opportunities.  It really helps to have
major population centers within driving distance.  Find a niche
market--don't try to compete head on with mass market.

My two sons are learning to work hard and long when necessary, but are
finally getting it that prioritizing the bees is the most important
thing--our bees are the employees that produce product out of thin air.  My
sons are finally looking at investment and return, and making some fat
checks, and see nothing but opportunity ahead.  The bee business, at least
where I live, can be good!  If you enjoy the lifestyle, then go for it!  I
look forward to the challenges and love every day!


-- 
Randy Oliver
Grass Valley, CA
www.ScientificBeekeeping.com

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