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Goat Lady Perfects "Multi-Level Marketing"
When the mohair market crashed in the early 1990's, Ada Austin didn't know where to turn. Her 200 angora goats had almost no value for either hair or meat. Desperation forced inspiration, and soon she was direct-marketing all kinds of mohair products herself: raw, washed or spun hair; woven sweaters, socks and mittens; and various decorations, ornaments and pelts she worked from a room on the side of her farmhouse. The store has since expanded twice but best of all, she has created a multi-level marketing program for 15 stay-at-home moms who create the crafts she sells.
    "It's called æwoman with back to wall,'" explains the self-proclaimed Goat Lady of Harmony, Minnesota. "Every one of us has had her back to the wall and had to be creative to make money. This is what we've done."
    Austin and her stay-at-home mothers buy and sell from each other; there are no other employees.
    Here's how it works: Austin sells hair to a woman who dyes it and then sells it back to her. Some of the dyed hair is marketed in Austin's on-farm store, while the rest is sold to women who make crafts from it or spin it. In most cases, it is again sold back to Austin unless the crafters find another market for it.
    Some items sell faster than others, like the mohair socks that have become Austin's bread and butter. All you have to do is try on a pair to see why many people won't wear anything else, even at $22 a pair. Machine washable, they stay warm, yet feet don't sweat.
    "They saved my marriage," jokes Austin. "My husband works outside in heavy boots all day. His feet used to smell terribly every night when he took off those boots. With these socks, they don't sweat or smell, and a pair of socks washed every night, lasts all winter."
    Eventually, everything sells, says Austin, but in the meantime everyone has made money on her efforts. No one, including her, has money tied up in production for long.
    "What's really good for the moms is that they get the money as fast as they finish their work," says Austin. "If they were consigning, it might sit on the shelf for weeks or months before they would get paid."
    The goat lady hasn't stopped innovating. Because quality mohair can only be harvested from young goats, Austin has had to find markets for mature goats. When her husband suggested butchering a load of goats and selling the meat, she couldn't believe there would be a market. But the first year she sold 90 head for meat. The next year she sold 140 and in 2003 even more. She has yet to advertise the low cholesterol meat cuts and low sodium sausage. All sales are word of mouth and the result of samples offered in the store.
    As if meat and hair wasn't enough, she even sells the hoof tip trimmings for dog treats. Skulls with horns can bring from $35 to $100 each. Old goat hair is woven into rugs, and hides are fleshed out and shipped to Pennsylvania to be cured and sold for several hundred dollars each, depending on size and quality.
    "We are wasting nothing from the tip of the horn to the tip of the hoof," says Austin. "But if anyone has any ideas for more uses, we would be happy to hear them."
    Contact: FARM SHOW Followup, Austin's Angora Goats and Mohair Gift Shop, RR2, Box 41B, Harmony, Minn. 55939 (ph 507 886-6731; email: mohair@means.net; website: www.austinsmohair.web.com).


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2004 - Volume #28, Issue #2