Got a problem heifer slaughtered on June 16 and split the meat with a co-worker. I charge by live weight whatever the live cattle futures market is the day I haul a cow off to the butcher. In this case it was 1.32 plus 75.00 for hauling. My butcher has really gone up on prices recently. He charges .84 hanging weight plus a disposal fee and a kill fee. Anyway, the bottom line for this 1285 lb heifer was 5.93/lb. This is what my customers pay and it seems high to me for someone buying bulk.
Freezer beef costs
- Thread starter shaz
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SBMF 2015
Well-known member
Price is right in line with most of the guys selling quarters and halves around here.
Stopped at a mom/pop feed store yesterday. They also sell beef their beef at the store. Ground beef was $7.84/lb
Stopped at a mom/pop feed store yesterday. They also sell beef their beef at the store. Ground beef was $7.84/lb
TexasBred
Well-known member
I've seen a couple advertise beef in the $6.50 range down in this area.
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shaz
Well-known member
Point I'm trying to make is that I can't produce a better value than the grocery store and that's the whole reason for doing this. At these prices should I tell my Fall customers they're better off going to Walmart? I'm 1.00/lb over target and don't see any way to reduce the price without shooting my foot off in the process.
SmokinM
Well-known member
I see your point but you don't necessarily have to be a better value. That is not why my customers buy from me. They want a better product that they know the history of. You also have to bear in mind that is price across the board and doesnt reflect steaks and othe premium cuts that are also only $6.50#. While steaks and things may be similar or sometimes better at Wal-Mart the hamburger/roasts are worlds better.
Beating walmart prices is a losing battle. You have to have customers that want to pay for your quality of product.
The other problem is hamburger is a byproduct of steak. There will be people who sell hamburger at cost just to move it out if the freezer.
The other problem is hamburger is a byproduct of steak. There will be people who sell hamburger at cost just to move it out if the freezer.
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shaz
Well-known member
There are also people like Costco that sell chicken below cost to lure customers into the store. The main issue in my opinion is getting people to eat beef instead of other stuff.
SmokinM
Well-known member
True enough but just remember nobody celebrates an event with a nice chicken dinner……..it is steak baby!
Son of Butch
Well-known member
I don't know about that.
Serving prime rib at catered events is far more popular than serving steaks.
Sea food is very popular too.
Teen events - pizza parties
Favorite uncle prearranged for fried chicken (his favorite) to be served after his funeral for all guests, in the banquet hall of his favorite restaurant.
Peace
Well-known member
You might not be seeing the real motivation of the buyers going the route of 1/2 or 1/4 of beef with a custom processor. It's not so much the price as it is the product. They know it's not processed in a giant plant via assembly line with who knows what to process outside of the steel knives and grinders....or other stuff done to preserve the color or kill bacteria... I'd venture more have the motivation to buy based on what it isn't or where it hasn't been.
Bob-s
Well-known member
If you break down the cuts; hamburger, rib eye, strip, tenderloin, different roasts, etc. and compare their cost at Walmart to your per pound cost I believe your customer will be way ahead. Added benefit is knowing how it was raised, what was NOT injected into their meat, and how it was processed. And they get to have it cut to their exact specifications.
Processors around here are charging upwards of $1.30lb cut & wrap and are still full until the EOY. Some even nickel and dime you on charging for stew beef, tenderizing, and portion control of $.30lb (what is that?).
People who enjoy quality and recognize it will pay for it. There will always be those who want quality product for low ball prices and then want to complain about it........... make them one time customers.
Just my $.02
Processors around here are charging upwards of $1.30lb cut & wrap and are still full until the EOY. Some even nickel and dime you on charging for stew beef, tenderizing, and portion control of $.30lb (what is that?).
People who enjoy quality and recognize it will pay for it. There will always be those who want quality product for low ball prices and then want to complain about it........... make them one time customers.
Just my $.02
If your only selling point is cheaper than walmart, you will never win. If there is no value added to the product you make over the completely unknown product in the store, it's over. Competing with corporations in straight commodity is break even at best.
The commodity prices you see slaughter animals selling for are based on a much lower cost of processing in massive facilities. Local processors cant be expected to compete with this and if their schedules are full, the market says they are charging a fair price.
Surely knowing where the meat comes from and how it was raised is worth a little bit of a premium. Also, being able to custom select cuts from a local processor should have a little bit of value over the meat that could have come from anywhere in the world.
If your current customers dont want to pay it, others will.
pnw-farmer
Well-known member
What was the customers take home weight?
We sell by hanging weight (in WA) at $3 lb. plus .80 cut and wrap 180 kill fee.
just sent one to butcher hanging weight 764 sold half and kept half.
Customer will pay a total of $1543.20 for half, when we get meat back will divide that total cost by finished cuts to figure cost per lb.
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shaz
Well-known member
Assuming the customer ordered the same thing I did it would have been around 220lbs
pnw-farmer
Well-known member
Is the 5.93lb based on the 220lbs of finished meat?
DCA farm
Well-known member
I had a family member ask to buy some burger off me I told em sure $5 a lbs the told me heck it's cheaper at Walmart I said ok well there you go fill your freezer with walmart meat then.
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shaz
Well-known member
Yes
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shaz
Well-known member
Yeah, I see that a lot here. Somebody is always looking for a deal.
greybeard
Well-known member
Kinda always lookin for one myself, just like everyone else but, ya get what ya pay for.
(anyone know where I can find some cheap gasoline?)
