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I made a similar post when I was newer, mainly focusing on showhorses.
You can find it Here
There is a lot of good advice from experienced players on that post.

I though that I had a couple of others saved but can't find them.
It may be benificial to do a search in the "Help Me Out" category.

I don't even bother keeping anything that can't pass SBA anymore unless they are ABOVE and BEYOND my expectations and I believe there may be 3 of those mares here currently.

I do not run a heavy show pony herd. I don't have the barn space if I'm being honest... I have a lot of breeding stock and I stay afloat basically from breeding them and selling the majority of the foals as they're born. I keep only a max of 60 per season and try to slim down my pastures by about 10 to 20 head every season as well to keep a steady new flow of mares. Anybody who doesn't have am AFPT at 8 years old that's higher than their own is sold.

I keep too many breeders. I stay afloat but don't make enough to produce awesome GMT projects that I really want to do. I have a ROF colt sitting here that I might start working on the next few months if I have extra cash from my checks. We'll see. I like what I do though, it works. Someday I'll be able to afford a nice big barn and fill it with show ponies. That's the ultimate goal. I get there and I'll be set.

Auction off the lower pointed horses.

On auction day open the search and click for auction and sort by total points. Open each horse and bid 2,600 on as many as you can. Don’t get into a bidding war as that decreases your profits. Continue bidding until you run out of money to bid or the points the horses have are down to about the mid range of your current herds points.

I usually keep my primary barn empty and sort my extra barns by points. Filling up the extra barns with the highest points first and working down. Anything left in the primary barn gets entered into the next auction.

This keeps my total horses roughly the same but my total points grows. My 330 odd horses bring in 6,400hbs a day.

Here’s an experiment I did on PT and it’s affect on points

http://hj2.huntandjump.com/forum/discussion/65064/research-experiment#Item_39

I used to have a PT cutoff but not anymore. At least not until I regularly start getting 12PT+

I am also a bad example of show horse/breeder ratio.... (4500 horses 2500 of which are mares) but so far here are my justifications (not logic)


Every mare in the pasture produces a foal every season. 2500 to auction foal -500 for breeders fees. I forgot how to reverse calculate that out, but it’s the equivalent of a good amount of points.

It can take a lot of time but I’ve gotten pretty good at making it efficient. Bulk SBA at lower gens, and just toss out the altered. Then breeding inspect the remainers and I toss out the Bs from every gen. Then I keep a 210 stall barn just for auction horses open. So when I breed horses that’s 550,000$ every auction. I don’t know the scale of your barn, but even on a smaller scale it’s a lot. (Now I keep a lot of mares so most of it goes back to keep barns anyway, but oh well).

I’m doing less reliance on PT testing now, but I am culling those that don’t have a certain amount of points. I used to require 500pts by 10 years old but I found that’s a bit too strict so I’m looking to change it. I for sure require 800 points by 17 though. Because that’s when they start to age out, and I (think) it’s about 823 points is the amount of $ they make in a month compared to how much it would be to auction them. So they defy the odds and make it another month, but die the next and you still make less
money

Buying pointed creates has also been helpful.