Why are guided hunts so expensive?

Comments are heard more and more often in hunting circles and on the convention floors, regarding the cost of outfitted, guided hunts. It brings to mind a definition I recently heard: 'Envy’- not completely understanding the other person's situation.' Somehow we all tend to look at the other guy and think he is out of line without considering what kind of expenses he has to cover. However, if someone should direct similar comments toward us, we are quick to see the whole picture and just as quick to let them know that things are not as they appear.

So, why is hunting so expensive? Let's face it, collecting a trophy room full of game is a big investment. It costs a lot in taxidermy fees, airfare, equipment and time. We all understand those costs, but how can today's outfitters justify the prices they ask for a week or 10 days of hunting? After all, their only expenses are a little food, a few days' wages, Aircraft charters and basic equipment. It's all pretty up front and easy to see. You only need do a few mental calculations to see that a lot of fellows are getting filthy rich - right? They're charging prices that are way out of line with what's provided. And, prices are still going up! They're just taking advantage of hunters today - right?

Or are they?

I have a confession to make. These were my thoughts exactly, over the years that I worked as an assistant guide in Alaska. In part, it was this thinking that was responsible for my setting off on a career of professional hunting about 25 years ago, and it was the search for this golden goose that kept my nose to the grindstone for those early years in the profession. I’m equally sure that it’s the driving force behind the entrance of so many new faces into the industry - even today..

It took me about a year to realize that if I was going to be successful at hunting I was going to have to close my other business and pursue the hunting profession full time. This was not a part time job that could provide a full time income; rather, it would be a full time job providing a reasonable wage - if pursued with caution in a prudent and professional manner and only if no unexpected expenses were encountered.

When the reality of the situation dawned on me I sat down and looked at the numbers on paper. The totals were appalling and they changed the manner in which I did business. Through the years those numbers have further changed, the state has imposed further burdens, and the market has demanded improvement. All have served to escalate hunting costs and have forced professionals to continue to develop new and more efficient methods of operation - or quit.

Let's take a few minutes for a backstage look at the trade. I think you may be surprised at what you see. The most prominent misconception about hunting is that guides make a year's income in just a couple of months' work and have the rest of the year to pursue other activities of their choice. While it’s true that operators of smaller outfits may not dedicate their total time to the hunting business, they generally exist as extremely marginal enterprises. Usually, they are incapable of providing quality hunting on a consistent basis; and, as a result, most are relatively unknown.

I would wager that any operation you are likely to be familiar with requires full time work for 12 months of the year and only generates a positive cash flow in two or three of those months.

In two or three short months the outfitter must book enough hunters to cover all of the fixed and variable operating expenses, office overhead, and replacement of damaged equipment. Hopefully after that is done there will be enough left over to put food on the family table for the remaining months of the year. Those busy months are January, February and March. If the outfitter does not generate the cash needed during that period, then something must suffer, and it's often the needs of the family.

Obviously that can only go on for so long a time. Sooner or later it shows up in other areas such as the quality of help and the amounts of food and equipment purchased for the next season. You would think this would start a spiral that quickly ends an operation but somehow it does not.

Outfitters are obstinate and many will continue to book and operate hunts, while financing them through other activities. They always expect (hope) that the next season will be the one that is fully booked and make good money. Hunter after hunter will go home burned and angry, but new clients will appear to take their place in line for the ultimate dream - a guided hunt at an "honest price".

The legacy of these operations is evident in the hunting circles of the world. Witness the rampant reports of dishonest outfitters, the good the bad and the ugly stories of unqualified guides, poor equipment, no food, little game and total lack of personal attention. Yet, in-the blind search for that, "fairly" priced hunt, these complaints are as unavoidable as the sunrise.

"OK," you say, "where are the expenses?"

The items vary with the country, state or province as well as the circumstances of the operation, but we can make some general observations by taking a close look at Alaska.

First, let's establish the situation. As in any business, guiding has a few operational costs that remain fixed regardless of the number of hunts conducted. Second, there are direct costs that increase with each contracted hunt and third, there are unanticipated expenses such as the death of livestock, accidents, fire, damaged aircraft and equipment destroyed by bears. Fourth, here should be a reasonable return from the operator's investment. Into these totals must be factored the number of clients served.

A recent survey in Alaska revealed some interesting statistics that we will use as premise for this examination:

The average number of clients taken per outfitter, in Alaska is 13.

The average gross revenue per outfitter is $87,483.

The average 10-day hunt costs $6,730.00; and,

Average capital assets investment is $194,034.

 

Individual figures for many expenses will vary depending on circumstance and an average figure has been taken in these situations as well.

At the start of each year there are certain fees and expenses that an outfitter must pay by law or regulation. In addition there are expenses to be covered for ethical or professorial reasons before hunts are booked or operated. These include the outfitting license ($200), professional dues ($200), commercial use fee ($500), liability and no-fault medical insurance ($1,300), aircraft liability insurance ($2,800), aircraft hull insurance ($3,300) and ground vehicle insurance ($3,300). The year begins with a basic outlay of $8,700.00, which translates into $669 per hunter per year.

Now that the basic requirements are met to conduct the hunts, the hunts must be booked and that means postage, brochures, convention attendance and advertising. Let's assume the outfitter does minimal advertising. Just a partial page in each issue of Foundation for North American Wild Sheep (FNAWS) and Safari Club International (SCI) publications for one year, (with layout costs), will come to approximately $2,000 ($153 per hunter). Five thousand color brochures and inserts printed, which should be good for two years ($5,600 total), represents a total of about $2,800 per year. It will run about $850 per year in postage and envelopes to mail the brochures for a yearly expense of $3,650 ($281 per hunter).

Now, it's time to go to a convention. There are numerous conventions, club or chapter meetings across North America, but we will plan on going only to the annual SCI and FNAWS shows. Since we want to keep expenses to a minimum we will rent a single booth, use an exhibitor's registration that comes with the booth, buy no drinks, see no shows and stay the minimum time at the hotel. Each booth rental will cost about $1,200 plus table, chairs and tack board rental ($400-$800) and an electric hook up ($45). Because a commercial booth backdrop costs more than $4,000 without photos or display materials, we will make our own display with photos, albums, slides and taxidermy ($700, or $350 per show). Of course there are also the two round trip tickets from Alaska to the convention and back ($1,050 per show), the hotel room ($400) and additional hotel cafeteria meals ($100). Then there will be tips, storage fees, taxis and miscellaneous expenses ($150). The basic convention costs will run about $3,695 each for a total of $7,390 per year
(about $568 per hunter).

When conventions are over and inquiries come in, there will be additional postage, office materials, and unending phone calls. Totals vary but telephone bills alone will run $300 per month on the average, or $3,600 a year ($277 per hunter).

Hundreds of hours have now been given to preparations for shows, travel, answering letters and making the calls necessary to book just these few hunts. But it's done, and it's May and time to start preparations for the fall. Each client will require about $4,200 worth of camp equipment to conduct a hunt, (combined share of spike camp and main camp equipment). This is expected to have four years of use or $81 per hunter.

The horses have to be rounded up and brought in. Yearly maintenance and feeding runs about $1,300 per animal and each hunt will require one horse for the hunter, one for the guide and, at a minimum, one to pack gear. Horses will be used for an average of three hunts in August and September so the total of $3,900 - split three ways - shows that it costs $1,300 per hunter for the horse that they sit on not counting purchase price or head loss due to harsh winters or accidents.

A guide is needed while in the field. The guide will be contracted for the length of a hunt, and will be paid the day the hunter arrives, the day the hunter departs, additional days for preparing and striking camp, travel days, or about 15 paid days for each 1D-day hunt conducted. Experienced guides make about $125 a day ($90 to $140 depending on experience). There will be additional daily expenses related to taxes and workers' compensation, etc., for an expense of $145 day ($2,156 per client guided). Other employees include the main camp staff of cooks, packers and wranglers. In order to save expenses, many outfitters do not hire this extra help, but more often then not some additional help is needed. Lea an unknown amount, so we wont include it in the figures - but don't forget it exists!

Now, it's time to purchase supplies and food. Recognize that for every 10-day hunt booked, the outfitter must also feed the guide for 15 days plus pay the costs of bringing all that food into camp. Not only are hunter and guide fed, but all additional camp staff as well. Many camps scrimp on food to cut expenses, but in a good camp each guide's and client's share of the total food bill will come to about $250.

Consider the cost of flying all the food, equipment and personnel into camp. Fuel or air charter amounts vary with distance and method, but it would be difficult to move on and off locations for less than around $2,900 in fuel, often much more in charter or an additional $223 of the cost of the hunt.

Most successful Alaskan outfitters now own one or more aircraft, some two or three, so that they can move clients efficiently, and check camps regularly for safety and public relations reasons. This aircraft requires yearly maintenance and annual inspections that average around $3,500 per aircraft. Figure that the 'average' outfitter has only one airplane. It's still $269 for the aircraft flown. Add 35 gallons of fuel, ($3 per gallon) to move hunter and assistant guide around in the field for an additional $105 per hunter.

Now, the total is up to $6,332 of overhead for the hunt and yet does not take into consideration a return on that $194,034 investment (aircraft, lodges, cabins, equipment, horses and other items.), the debt service or a year of the outfitter's time. It does not include office equipment and supplies, hunts donated to convention auctions or unexpected capital losses from accidents. It also does include taxes and losses from canceled hunts (where most of the above expenses have been realized but the client decides not to come and probably wants a deposit returned).

With the average 10-day hunt selling at $6,730, it leaves the outfitter just $398 per hunt to cover these remaining expenses.

Sounds bad, doesn’t it? But that’s not all. If the outfitter hunts on U.S. Forest Service or National Wildlife Refuge lands, 3 percent of his gross ($202 per hunter) must be paid to the government. (15 percent has been proposed in Alaska and is active in other states).

If hunting on native tribal lands, the outfitter will pay a land use fee that can go up to $1,000 per guide and another $1000 per hunter.

Some boroughs charge sales taxes for hunts on lands within their jurisdiction.

Then, for hunters booked through an agent, knock off 15 percent more ($1,009) of the gross that the outfitter never sees.

Now, it doesn’t take much of a mathematician to see that the numbers just won't work.

So, how do outfitters do it? Are they uneducated? Don't they know basic arithmetic? Possibly. What is more likely is that they cut corners, work at another job for part of the year and - with their families - live pretty basic lives. Many do not have horses and that helps considerably. Those who do have horses usually have aircraft, too, so - shame on them! Because wages for an experienced guide can make up 20-25 percent of their expenses, they often hire inexperienced guides who will work for less, cut back on camp help, purchase minimum food supplies, use very old equipment, and neglect to pay certain expenses such as workman's compensation and liability insurance - until they are caught.

They also may double up hunters with a lone guide or encourage the guide to take the first possible animal so they can pull the hunter from the field and get another hunter into camp.

The hunter can end up feeling shorted but can you blame the outfitter? After all, the client wanted a bargain hunt. Goodness knows, it’s tough enough for a guide to make a living when receiving a full and fair price; but, to offer a quality hunt and still make a living an outfitter must put in long hours, be highly organized, charge a higher than average price and count on the economy of volume to lower his per-hunter overhead.

I would like to say that’s everything, but it is not. The outfitter still has to cover the cost of purchasing aircraft, lodges, horses, personal hunting equipment, unexpected damage to the aircraft and losses from hunters who cancel or simply fail to show up. This is an especially difficult situation. The client and income evaporate, but the space and expenses related to it live on.

Of course, there are additional liability and fire insurance premiums for lodge owners, the costs of owning and maintaining a hangar, secretarial and accounting services, office supplies, property taxes, general repair and maintenance, and on and on.

One last consideration: a sheep hunt that cost $2,500 in 1972 has risen to $6,500 today - a 206 percent increase. Gasoline has risen from 25 cents to $1.36 per gallon (540 percent), a candy bar from 10 cents to 50 cents (500 percent), guides' wages rose from $30 per day to $125 (416 percent), a used Supercub went from $11,000 to $38,000 (345 percent) and a McDonald's hamburger shot up from 15 cents to 98 cents (655 percent). Minimum wage was raised from $1.25 to $4.25 (340 percent) and a new car went from $3,000 to $20,000 (666 percent).

Now - I ask you - why has the cost Of hunting stayed so low?

Every client must decide. If dollars are the only thing that count then one probably would be better off not hunting at all. That hunt with the attractive price will probably not turn out as expected; not only will the hunter be dissatisfied, but he will lose money, too. (It has always amazed me how many people will be burned two or three times before finally purchasing a quality hunt and begin an enjoyable hunting career.)

If you desire a professional hunt, and the personal service and success that goes with it, you should consider the higher-priced services offered by reputable names in the industry. A guide just can not put on a quality hunt if the price received does not cover the costs. Names of good guides are not difficult to locate. Whether they have been in the industry for years or have just opened shop, their names turn up over and over again wherever hunters stop to talk. Pay attention to what you hear, understand what the price covers, call early, book with confidence, look forward to it with anticipation because "There ain't no such thing as a free lunch!"

Author Larry Rivers is an Alaska Master Guide and longtime SCI supporter,, Box 107, Talkeetna, AK 99676.
 

 Home Page
Alaska:  General Information   -  Dall Sheep  -  Brown Bear  -  Grizzly Bear
Alaska:   Openings  -  Prices  -  Book a hunt now  -  Photo Galleries  -  Stories and articles
Alaska:   Equipment lists  -  Hotels  -  License fees  -  Unit map  -  Q&A  -  Sporting goods
Alaska:   Taxidermists

Tajikistan:     Marco Polo
Kazakhstan:  General Info.  -  Ibex  -  Maral Stag - Maral / Ibex combination
Russia:          Russian Brown Bear  -  Snow Sheep