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Butcher Prices - Revisited
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<blockquote data-quote="hayray" data-source="post: 505583" data-attributes="member: 3046"><p>We have two different business here that I think that some of the readers are not realizing. A direct market freezer beef business is a completly different business then selling cattle on the grid or at the market. The direct retailer who trys to model their business after the commodity market and the market price for hot carcass weight is cheating themselves out of a lot of money. Direct marketing your own beef you then incurr a lot of the same costs as a meat distributor does. If you are truely retailing your beef then why charge by the hanging weight at all? I charge by the packaged meat price and do all the up front costs of processing and storage, and transportation myself, and selling at a retail packaged beef price, not letting the processor determine my priceing based on the hanging weight. The two types of marketing business are not at all the same and need to be treated differently, then you don't feel bad about charging more then the market price and instead feel good about getting paid for your extra services and hopefully quality. I charge $4.50/lb for a whole beef packaged and delivered to your door, that usually is around 400 lbs. All USDA inspected and dry aged for 14 days. A Rib steak or T-Bone is gonna cost $12.75/lb. At the Michigan auctions now we are lucky to get $.84/lb while the rest of the country is another 5 to $10/cwt above us. No way I am gonna feel good selling my cattle that way.</p></blockquote><p></p>
[QUOTE="hayray, post: 505583, member: 3046"] We have two different business here that I think that some of the readers are not realizing. A direct market freezer beef business is a completly different business then selling cattle on the grid or at the market. The direct retailer who trys to model their business after the commodity market and the market price for hot carcass weight is cheating themselves out of a lot of money. Direct marketing your own beef you then incurr a lot of the same costs as a meat distributor does. If you are truely retailing your beef then why charge by the hanging weight at all? I charge by the packaged meat price and do all the up front costs of processing and storage, and transportation myself, and selling at a retail packaged beef price, not letting the processor determine my priceing based on the hanging weight. The two types of marketing business are not at all the same and need to be treated differently, then you don't feel bad about charging more then the market price and instead feel good about getting paid for your extra services and hopefully quality. I charge $4.50/lb for a whole beef packaged and delivered to your door, that usually is around 400 lbs. All USDA inspected and dry aged for 14 days. A Rib steak or T-Bone is gonna cost $12.75/lb. At the Michigan auctions now we are lucky to get $.84/lb while the rest of the country is another 5 to $10/cwt above us. No way I am gonna feel good selling my cattle that way. [/QUOTE]
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