151 Factors influencing sale and bid price of sport-trained horses and ponies sold at online auctions

Abstract

Online auctions are becoming popular as technological availability and need for virtual sale options within the United States sport horse industry increase. Private treaty has been the predominant outlet for sport horse sales, resulting in limited information on factors impacting online sale prices. Our objective was to determine factors affecting online auction sale price for horses and ponies trained in sport classified disciplines. Data was collected from online sport horse auctions spanning from 2012 to 2020 (n = 75, Professional Horse Auctions, LLC). A horse's lot number, sex, breed, registration status, breeding/lineage, and level of training were collected. Seller's ratings of the horse's disposition, professional training, and suitability for riding and training were recorded. If included in the sale description, the type and number of pictures, and video count were collected. Data were assessed using ANOVA and mean comparisons (α = 0.05), with Tukey's pairwise post hoc analysis where appropriate (STATA 16). A total of 2,454 horses were listed, but only 41.7% resulted in a successful sale (n = 1024) with a wide range of accepted bids impacting mean bid price (mean ± SD, 5164 ± 5345 USD; minimum bid = 200 USD, maximum bid = 41,250 USD). Auction month had a significant effect on sold outcome, with horses more likely to sell in March, June, and September ( P = 0.005). Color (k = 17) impacted mean bid price, with black horses (n = 66) yielding the highest price (7,559 ± 6,734 USD, P < 0.0002). Breed impacted bid price, where warmblood breeds commanded the highest bids ( P < 0.00001). Disposition did not affect sale outcome or bid price ( P > 0.05). Professional training did not affect sale outcome but did result in a higher mean bid when reported (professional training 5297 ± 6122 USD, no professional training 3901 ± 4160, P = 0.006). Horses were more likely to sell with lower levels of experience (scores of 1–5 on a 10-point scale, where 1 = least experienced and 10 = most experienced) over those with more experience ( P = 0.06), but ratings did not affect bid price. The number of pictures, ranging from 1 to 19, included in the listing impacted sale ( P = 0.006) and bid ( P < 0.00001). The number of videos increased the bid price with increasing numbers of videos ranging from 0 (3342 ± 4512 USD) to 4 (7946 ± 7806 USD, P < 0.00001). Assigning an objective value to horses is an industry-wide challenge. This information provides useful insight on successful sale and premium bid factors for sport horses in an online auction venue, and illuminates market trends for horses or ponies with specific characteristics.