A ROI Basis for Killing Deaf Puppies?
Business Cases of Breed-Clubs and Puppy-Mills; ROIs compared to that of Deaf Dogs Owners
Summary: EntrepreneurUS dog breeders and puppy mills could apparently enjoy low risk and excellent Return on Investment (ROI) in a near monopoly market - provided they obeyed the RED BOOK published guidance of the DCA Board of Governors, 1994-2011. Owning deaf dogs was financially unprofitable; i.e. negative ROI. ROI of the Breed Clubs and puppy-mills owners were potentially vulnerable to adverse publicity, regulations or laws.[Business Case estimation procedures approved by the US Office of Management and Budget were used with these estimates.]
I. BREED CLUBS
Dalmatian breeders were selected for illustration because comprehensive data existed. ROI of several plausible commercial business models were compared:
1. All hearing Puppies sold as Show Quality & all deaf puppies killed immediately:
If as projected by the Red Book, 50 % of the puppies were deaf and promptly killed the annual puppies sales income might be $12 M per year. ROI ~ 12/77 = 15 percent
2. Deafness "Magically" prevented< so All are hearing puppies sold as Show Quality
Income from Dalmatian puppies born in 2010 if all were bi-ear hearing was estimated as potentially about $24 million from "Fixed Assets" i.e. the adult dogs, worth perhaps $77 million. ROI ~ 24/77 = 30 percent [Excluding costs for accepting deafness.]
3. Registered hearing Dogs Sold as Show Quality & deaf puppies killed immediately: If only the hearing registered puppies provided income in 2010 (according to the AKC less than 50 percent of hearing pups were registered), and the others disposed of immediately, the cash flow might be about $4.7 M. ROI ~ 4.7/77 = 6 (six) percent.
Comparative Return on Investments:
Comparison of the three alternative business models showed that the likely ROI in 2010 was :
- Maximum if Deafness Prevented ROI about 30 percent/ year
- All hearing sold as Show quality; PTS deaf pups ROI about 15 percent /year
- Registered Dalmatians “only” sold; PTS deaf pups ROI about 6 percent /year.
Minimum risk was associated with the third business model (kill all but registered puppies), in which all deaf puppies (both uni and bi-ear) were immediately killed and any non-registered puppies were disposed of humanely as soon as possible (see Red Book).
Explanation of risks: If substantial effort were made by breeders to give equivalent vaccinations, OFA/health tests, training and socialization to the deaf and unregistered dogs, it was estimated that in some years the ROI of some breeders could drop to zero.
The DCA Board Red Book guidance would increase profit by killing the deaf puppies as soon as possible eliminated expenses for feeding, cleaning, training, socializing, transportation, advertising and marketing of at least the deaf half of the Dalmatian puppies.
Excluded Potential income: In the estimates, potential income from sales of tons of puppy meat for animal feed in the US as done with US lambs and chickens was omitted because of lack of useful commercial data.
Profit and Better ROI from Reducing of Dog Deafness: If Dalmatian inherited deafness were cured by BAER use or some other method there might be No or less killing of deaf puppies and thus twice more salable puppies. The Dalmatians Breeders' ROI could increase to about 30 percent without much increasing investments.
II. DEAF DOGS US Owners
Because most deaf dogs in the US were probably neutered or killed, the estimated income from births and sales of their puppies was estimated as zero (0) dollars per year in 2010. The typical annual total income from those assets would be negative, i.e. expenses for food, medicines, etc. Fixed Asset value of adult deaf dogs of all breeds in the US might reach $300,000 at an estimated resale value of $1.00 each.
Negative Return on Investments (ROI) for US deaf dogs was estimated with high confidence.
Business Cases of Breed-Clubs and Puppy-Mills; ROIs compared to that of Deaf Dogs Owners
Summary: EntrepreneurUS dog breeders and puppy mills could apparently enjoy low risk and excellent Return on Investment (ROI) in a near monopoly market - provided they obeyed the RED BOOK published guidance of the DCA Board of Governors, 1994-2011. Owning deaf dogs was financially unprofitable; i.e. negative ROI. ROI of the Breed Clubs and puppy-mills owners were potentially vulnerable to adverse publicity, regulations or laws.[Business Case estimation procedures approved by the US Office of Management and Budget were used with these estimates.]
I. BREED CLUBS
Dalmatian breeders were selected for illustration because comprehensive data existed. ROI of several plausible commercial business models were compared:
1. All hearing Puppies sold as Show Quality & all deaf puppies killed immediately:
If as projected by the Red Book, 50 % of the puppies were deaf and promptly killed the annual puppies sales income might be $12 M per year. ROI ~ 12/77 = 15 percent
2. Deafness "Magically" prevented< so All are hearing puppies sold as Show Quality
Income from Dalmatian puppies born in 2010 if all were bi-ear hearing was estimated as potentially about $24 million from "Fixed Assets" i.e. the adult dogs, worth perhaps $77 million. ROI ~ 24/77 = 30 percent [Excluding costs for accepting deafness.]
3. Registered hearing Dogs Sold as Show Quality & deaf puppies killed immediately: If only the hearing registered puppies provided income in 2010 (according to the AKC less than 50 percent of hearing pups were registered), and the others disposed of immediately, the cash flow might be about $4.7 M. ROI ~ 4.7/77 = 6 (six) percent.
Comparative Return on Investments:
Comparison of the three alternative business models showed that the likely ROI in 2010 was :
- Maximum if Deafness Prevented ROI about 30 percent/ year
- All hearing sold as Show quality; PTS deaf pups ROI about 15 percent /year
- Registered Dalmatians “only” sold; PTS deaf pups ROI about 6 percent /year.
Minimum risk was associated with the third business model (kill all but registered puppies), in which all deaf puppies (both uni and bi-ear) were immediately killed and any non-registered puppies were disposed of humanely as soon as possible (see Red Book).
Explanation of risks: If substantial effort were made by breeders to give equivalent vaccinations, OFA/health tests, training and socialization to the deaf and unregistered dogs, it was estimated that in some years the ROI of some breeders could drop to zero.
The DCA Board Red Book guidance would increase profit by killing the deaf puppies as soon as possible eliminated expenses for feeding, cleaning, training, socializing, transportation, advertising and marketing of at least the deaf half of the Dalmatian puppies.
Excluded Potential income: In the estimates, potential income from sales of tons of puppy meat for animal feed in the US as done with US lambs and chickens was omitted because of lack of useful commercial data.
Profit and Better ROI from Reducing of Dog Deafness: If Dalmatian inherited deafness were cured by BAER use or some other method there might be No or less killing of deaf puppies and thus twice more salable puppies. The Dalmatians Breeders' ROI could increase to about 30 percent without much increasing investments.
II. DEAF DOGS US Owners
Because most deaf dogs in the US were probably neutered or killed, the estimated income from births and sales of their puppies was estimated as zero (0) dollars per year in 2010. The typical annual total income from those assets would be negative, i.e. expenses for food, medicines, etc. Fixed Asset value of adult deaf dogs of all breeds in the US might reach $300,000 at an estimated resale value of $1.00 each.
Negative Return on Investments (ROI) for US deaf dogs was estimated with high confidence.