Mark your calendars! MGX is moving from a flat 1% service fee to a graduated auction fee structure that is charged on a dollars per metric tonne basis.
Merv’s long history with CGF Brokerage and Consulting has informed the model MyGrainExchange.com is built on. As such, we are shifting to a new pricing structure from the traditional auction house method of taking a percentage of gross sales to one the grain industry is familiar with - dollars per metric tonne.
We are launching MyGrainExchange.com Version 2.0 at the Crop Production Show in January 2024. Along with the multiple system improvements and additions, the new auction fee structure will be included in this update.
MGX only charges service fees at the close of a successful auction and the value is the same for both the buyer and the seller. Here is the breakdown of what doing business through MyGrainExchange.com will cost:
$2.50/MT for feed oats and feed barley
$3.00/MT for organic feed oats and feed barley
$3.50/MT for all other conventional commodities
$4.00/MT for all other organic commodities
We are looking to simplify the marketing process and remove barriers to use for our customers. Providing a standard dollars per tonne service fee that makes it easy to calculate your marketing costs is one way we're doing that. - Merv Berscheid
Volume Discounts
Frequent Sellers on MGX are rewarded the more product they market through our platform. The discounts are applied on a graduated scale at sales targets reached within a single crop year (12-month period starting July 1st of each year).
The first 249 MT are charged at $3.50/MT. Discounts starting:
2.5% discount after the sale of 250 MT = $3.41/MT
5% discount after the sale of 500 MT = $3.33/MT
10% discount after the sale of 1000 MT = $3.15/MT
15% discount after the sale of 2000 MT = $2.98/MT
Premium Seller: 20% discount after the sale of 4000 MT within a 12 month period = 2.80/MT
For more information on Premium Seller accounts, please contact us.
Improving Marketing Efficiency for All
When all is said and done, we very much expect the cost of using MGX to be on par to the current costs of brokering grain - although MyGrainExchange.com is not a grain brokerage. Based on Merv's experience, we can confidently state that the current broker-driven system for cash trades is fragmented and inefficient.
MGX is an improvement to the broker system by offering greater and more efficient market access with less leg work and more timely market intelligence. It is simply a tool meant to improve your grain marketing strategy.
The same $2.50/MT and $3.50/MT auction fee applies to Buyer accounts.
Volume discounts for Buyers are calculated on an incremental scale of 1% per 1000 MT purchased up to 15% in a continuous 6-month period.
Example: After the purchase of 1000 MT a 1% discount is applied on 1001 - 1999 MT, 2% on 2000 - 2999 MT, 3% on 3,000 - 3999 MT, etc. 1% additional discount after each additional 1000 MT purchased up to 15% in a 6-month period.
At the end of the day, this platform is about 3 simple things. Price discovery, market access and open competition. And let's be honest, in a free market, competition is a key driver of profitability.
Are you a Grain Broker?
Harness the Power of Online Auctions for your Customers
MGX auctions offer a unique opportunity for grain brokerages to easily access multiple grain companies in one simplified marketplace. Use this robust marketing tool to improve efficiencies, reduce overhead costs and leverage better trades for your customers. We have special user-profiles and pricing options to accommodate brokerage accounts.
Please contact Luke Derkson, Director of Customer Relations, for more information.
Phone: (306) 912-5254
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