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From The Desk of Terry: Pricing Model / Tuesday, February 28, 2012

I sent a memo to all Partners on Tuesday afternoon, 2/28, but this is important stuff, and I want to make sure you're aware of it. Below is a copy of the memo.

Looking forward to the 2-year-old sales season, I want to share significant changes that provide big benefits to you. We received great feedback from our Partner satisfaction survey last month and made adjustments to our pricing model as a result.

I sent a memo to all Partners on Tuesday afternoon, 2/28, but this is important stuff, and I want to make sure you're aware of it. Below is a copy of the memo.

Looking forward to the 2-year-old sales season, I want to share significant changes that provide big benefits to you. We received great feedback from our Partner satisfaction survey last month and made adjustments to our pricing model as a result.


Take a look at the modifications for new syndications organized in 2012:

  • Discounted – purchases made within seven days of WPT’s acquisition of the 2-year-old at auction. Partners who commit early to a horse (or horses) in the Class of 2012 receive a 15% “hammer drop” discount. Barrett’s “hammer drop” discount ends March 12th, OBS ends March 21st, and Fasig Tipton ends April 2nd.
  • Reduced – the purse percentage WPT collects from a partnership. For horses syndicated this year, we’ll collect purse commissions only after the horse has earned more than its syndication price.
  • Dropped – the $500 monthly management fee. Initial price on the 2012 purchases will compensate WPT for managing the horse’s racing career and the affairs of the partnership.
  • Smaller – partnership size. Minimum investment in a horse in the Class of 2012 will be 5%, which will give us the ability to provide even more first class service and greater access to the best parts of being an owner.  


Click here to watch a video of me discussing the price model changes.

As with our yearling Class of 2011 – which sold out in less than two weeks, we expect our 2-year-olds of 2012 to sell quickly with the new pricing model and “hammer drop” incentive.

Simply put, we believe these enhancements offer a better financial model to our Partners. I think we are more in partnership with our clients, our business even more driven by their experience and success. Going forward we’ll do less advertising, relying instead on word-of-mouth and referrals. Continuing to limit expenses is also a very real objective.      

I’m as passionate about WPT and the industry as ever and committed to improving our on-track performance and Partner experience. Big things are in store for 2012: we’ll have a great group of 2-year-olds in the barn, older horses hitting their best stride, and others fresh and healthy, heading back to the races.

This Thursday morning at 11:00 a.m., I fly out of Philadelphia headed West toward the first 2-year-old sale of the season. Jeff Lifson and Erin Finley will be joining me. Mike Shannon will be an integral part of the buying team at all sales. Craig Dollase will also provide his council at Barretts, and several of our East Coast trainers will also be more involved in the selection process this year.

First Barretts March in Pomona, California, then OBS in Ocala, Florida, then Fasig-Tipton in South Florida, then Keeneland in Kentucky. Let the games begin! You can watch the breeze shows and live auction on your computer.

If you or somebody you know would like to visit the sales to see what it’s all about, feel free to set it up with us by contacting Shannon Castagnola at shannon@westpointtb.com or (859)-523-6559. The industry needs more passionate people getting into the game for the first time.

I’m always available any time you want to talk horses!

Terry
(609)-636-7204



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