Freezer beef prices?

[SRBeef]

I have been charging $3.90/lb for a split half cut, wrapped, and delivered. I backed into this price by figuring I want the same net as selling a traditional fat for $1.30 at the sale barn.


Jim

What sale barn is paying $1.30 for fat fed cattle?

None. That's why I am selling it as I am. I figure I need 1.30 on live weight to cover my costs and a reasonable profit and return on the investment (ROI). When/If a sale barn will pay 1.30 (I am not holding my breath) I will not have to go to all this work and just sell at the sale barn. Till then it's freezer beef delivered door to door at $3.90 or thereabouts.

I have been raked over the coals about this before please don't give me the "gouging my customers" lecture. This is not as easy as selling at the sale barn nor as easy as it may appear. Thank you.

Jim

 

[ALACOWMAN]

I have been charging $3.90/lb for a split half cut, wrapped, and delivered. I backed into this price by figuring I want the same net as selling a traditional fat for $1.30 at the sale barn.


Jim

What sale barn is paying $1.30 for fat fed cattle?

None. That's why I am selling it as I am. I figure I need 1.30 on live weight to cover my costs and a reasonable profit and return on the investment (ROI). When/If a sale barn will pay 1.30 (I am not holding my breath) I will not have to go to all this work and just sell at the sale barn. Till then it's freezer beef delivered door to door at $3.90 or thereabouts.

I have been raked over the coals about this before please don't give me the "gouging my customers" lecture. This is not as easy as selling at the sale barn nor as easy as it may appear. Thank you.

Jim

im afraid thats inevitable at this point
:cowboy:

 

[bannedagain]

thanks for clarifying jim

 

[HEREFORD ROADHOG]

I have been charging $3.90/lb for a split half cut, wrapped, and delivered. I backed into this price by figuring I want the same net as selling a traditional fat for $1.30 at the sale barn.


Jim

What sale barn is paying $1.30 for fat fed cattle?

None. That's why I am selling it as I am. I figure I need 1.30 on live weight to cover my costs and a reasonable profit and return on the investment (ROI). When/If a sale barn will pay 1.30 (I am not holding my breath) I will not have to go to all this work and just sell at the sale barn. Till then it's freezer beef delivered door to door at $3.90 or thereabouts.

I have been raked over the coals about this before please don't give me the "gouging my customers" lecture. This is not as easy as selling at the sale barn nor as easy as it may appear. Thank you.

Jim

You Aren't gouging them you're RAPING them. If you need 1.30 to just make some profit your costs are too high.Also your math DOES NOT ADD UP .A1200 # animal that dresses 60% (720#'s@ 3.90 )is going to bring you $ 2800.00 the slaughter costs shouldn't be over $600.00 so that leaves $2200.00 on a 1200 beef thats 1.83 a pound live. It's OK to make money but double market price ?? Damn . take it to the slaughter house & let them pay the processing & quit giving beef producers a bad name. :frowns:

 

[3waycross]

I have been charging $3.90/lb for a split half cut, wrapped, and delivered. I backed into this price by figuring I want the same net as selling a traditional fat for $1.30 at the sale barn.


Jim

What sale barn is paying $1.30 for fat fed cattle?

None. That's why I am selling it as I am. I figure I need 1.30 on live weight to cover my costs and a reasonable profit and return on the investment (ROI). When/If a sale barn will pay 1.30 (I am not holding my breath) I will not have to go to all this work and just sell at the sale barn. Till then it's freezer beef delivered door to door at $3.90 or thereabouts.

I have been raked over the coals about this before please don't give me the "gouging my customers" lecture. This is not as easy as selling at the sale barn nor as easy as it may appear. Thank you



Jim

You are charging "What the market will bear" It's nobody's business but yours. If someone is paying YOUR bills then they can tell you how to operate. You have broken no laws, and no one is being forced to pay those prices.

Everything else is just bullshyt!

 

[SRBeef]

You Aren't gouging them you're RAPING them. If you need 1.30 to just make some profit your costs are too high.Also your math DOES NOT ADD UP .A1200 # animal that dresses 60% (720#'s@ 3.90 )is going to bring you $ 2800.00 the slaughter costs shouldn't be over $600.00 so that leaves $2200.00 on a 1200 beef thats 1.83 a pound live. It's OK to make money but double market price ?? be nice . take it to the slaughter house & let them pay the processing & quit giving beef producers a bad name. :frowns:

My dear sir: I believe it is YOUR math that does not add up. I am NOT charging based on the hanging weight but on trimmed boxed and frozen mostly boneless cuts in the box. I also do not hold them to 1200 lb.

On a typical 1050 lb steer as I have them trimmed, I usually get a little over 400 lb of beef in the box frozen. In rough numbers that grosses $1600. per steer, not $2800. From that 1600 (not 2800) gross, I pay USDA processing and drive all over creation. I have many other costs you do not when selling at a sale barn. I have made a lot of initial investment in handling facilities, fencing, installing heated waterers in a northern climate, etc. There is the lost opportunity cost of the fact I could be growing corn on this land. I do believe that I can turn a modest and fair profit and return on the investment. Eventually. I like cattle. I like beef. My customers so far really like my beef. No one complains about the price. I could sell more.

I think you owe me an apology.

Jim

 

[hayray]

Hey Jim, your numbers add up to exactly what mine do. At that price you are only profiting about 1.5 times what a sale barn price is after all the distribution and processing costs. I charge a little more then you in my area and at most I will gain some times double the profit and when sold in smaller packages I can gain a lot more but I also drive a 180 mile round trip for USDA processing and delivery on top of that. I would say on the average I get about 350 lbs., 400 on a large steer.

 

[hayray]

What are the minimum math requirements to get into The Ohio State University? :banana: :banana:

 

[SirLoin]

I get 2 bux a pound on the hook for mine, the customer pays the butcher

 

[TexasBred]

You are charging "What the market will bear" It's nobody's business but yours. If someone is paying YOUR bills then they can tell you how to operate. You have broken no laws, and no one is being forced to pay those prices. Everything else is just bullshyt!

Another intelligent response..I've always thought the value of anything was what it would bring on the market in a reasonable period of time (there is a longer definition). Doesn't appear that Jim is having any problem selling his beef so I figure it's worth what he's asking or at least the customers are satisfied with the price. He's not gouging or raping anybody. You others may just be giving away your product. Then again you may be getting what it's worth or perhaps your beef is overpriced when you compare the quality to the price.

 

[HEREFORD ROADHOG]

You Aren't gouging them you're RAPING them. If you need 1.30 to just make some profit your costs are too high.Also your math DOES NOT ADD UP .A1200 # animal that dresses 60% (720#'s@ 3.90 )is going to bring you $ 2800.00 the slaughter costs shouldn't be over $600.00 so that leaves $2200.00 on a 1200 beef thats 1.83 a pound live. It's OK to make money but double market price ?? be nice . take it to the slaughter house & let them pay the processing & quit giving beef producers a bad name. :frowns:

My dear sir: I believe it is YOUR math that does not add up. I am NOT charging based on the hanging weight but on trimmed boxed and frozen mostly boneless cuts in the box. I also do not hold them to 1200 lb.

On a typical 1050 lb steer as I have them trimmed, I usually get a little over 400 lb of beef in the box frozen. In rough numbers that grosses $1600. per steer, not $2800. From that 1600 (not 2800) gross, I pay USDA processing and drive all over creation. I have many other costs you do not when selling at a sale barn. I have made a lot of initial investment in handling facilities, fencing, installing heated waterers in a northern climate, etc. There is the lost opportunity cost of the fact I could be growing corn on this land. I do believe that I can turn a modest and fair profit and return on the investment. Eventually. I like cattle. I like beef. My customers so far really like my beef. No one complains about the price. I could sell more.

I think you owe me an apology.

Jim

Jim, you have my apology, I misread somewhere that you were basing your price on haning wt. But I Discovered it was Hooknline,hangemhigh that in my opinion is gouging not you.
David.

 

[HEREFORD ROADHOG]

What are the minimum math requirements to get into The Ohio State University? :banana: :banana:

Probably higher standards than it takes to coach the Michigan football team :dunce:

 

[HEREFORD ROADHOG]

You are charging "What the market will bear" It's nobody's business but yours. If someone is paying YOUR bills then they can tell you how to operate. You have broken no laws, and no one is being forced to pay those prices. Everything else is just bullshyt!

Another intelligent response..I've always thought the value of anything was what it would bring on the market in a reasonable period of time (there is a longer definition). Doesn't appear that Jim is having any problem selling his beef so I figure it's worth what he's asking or at least the customers are satisfied with the price. He's not gouging or raping anybody. You others may just be giving away your product. Then again you may be getting what it's worth or perhaps your beef is overpriced when you compare the quality to the price.

I guess whatever price your conscience will let you sleep at night. Charge $5.00 a lb., alot easier to figure.
I sell to many friends, reatives, & co-workers, so I want remain on their good side.

 

[Anonymous]

So in your opinion I'm gouging huh? When I pay 1.26/lb for a calf, and an avg of 2 bucks a day carrying cost till finish, and land here is 20k/ acre.....please, someone explain how I'm gouging. Funny, I never have a problem selling what I have to sell. You folks north of me have no idea how cheap things are compared to here. If I could buy 100's of acres at 1500-2500/acre, buy lime and fert by the ton, have access to bulk feed for what you guys are paying,vets that don't charge 200 to pull a calf, a herd of 50-300( reducing per head cost) I could sell for less. But the people and friends I sell to know without a doubt how I handle, feed, and work my whole herd of 3 head, and they are already asking when ill have more ready. More power to those that get their costs lower, but I cant

 

[TexasBred]

You are charging "What the market will bear" It's nobody's business but yours. If someone is paying YOUR bills then they can tell you how to operate. You have broken no laws, and no one is being forced to pay those prices. Everything else is just bullshyt!

Another intelligent response..I've always thought the value of anything was what it would bring on the market in a reasonable period of time (there is a longer definition). Doesn't appear that Jim is having any problem selling his beef so I figure it's worth what he's asking or at least the customers are satisfied with the price. He's not gouging or raping anybody. You others may just be giving away your product. Then again you may be getting what it's worth or perhaps your beef is overpriced when you compare the quality to the price.

I guess whatever price your conscience will let you sleep at night. Charge $5.00 a lb., alot easier to figure.
I sell to many friends, reatives, & co-workers, so I want remain on their good side.

A reald "Friend" would not expect special treatment...it's business. They'd want you to make good money. Conscience has nothing to do with it.

 

[SRBeef]

...Jim, you have my apology, I misread somewhere...
David.

Thank you, David. Accepted.

It says something good about a person when a man (or woman) can issue an apology on line.

I would suggest that we ALL be careful what we post and get our facts straight before typing.

Jim

 

[ChrisB]

Setting freezer beef price is one of the reasons that keep me from trying to direct market more animals. Here is how I see it:

The amount of work I have invested in an animal is irrelevant. I can spend a lot of time feeding by buckets, square bales of hay, etc. or I can use labor saving machinery. I can feed 5 head or feed 500 head. I can feed from a bag or I can raise my own feed. None of that adds any value to an animal - the animal will still weigh the same and be graded the same.

Now it is time to sell that steer; I can bring it to a local sale barn, packer, whatever and be paid market price of say $1.00/lb. Or I can sell this same steer directly to my brother, mom and dad, or friends for $1.50/lb. I personally feel guilty doing that. If my buddy has a repair shop and the going rate for a brake job all over town is $100 (market price), and I walk in the door and he charges me $150 does that sound like a good friend? Or does he feel that I can sleep better at night knowing who did the job and where the new pads came from so that is worth the extra cost? When I go to him for repair work I am expecting to pay the going rate, no more, no less. Why would it be different if he wanted to buy some beef from me?

I know people will say their beef is so much better than everyone else's and they can't raise enough beef to fill their orders. That is fine and I guess I am happy for you, but most consumers don't pay any attention to the cattle market and just assume they are getting a good deal if they buy direct from the farmer. And if you think your beef is better than what comes from a feedlot, I guess you'll have to explain to me how.

I'm not trying to insult anybody, that is just how I see things.

 

[SRBeef]

Setting freezer beef price is one of the reasons that keep me from trying to direct market more animals. Here is how I see it:

The amount of work I have invested in an animal is irrelevant. I can spend a lot of time feeding by buckets, square bales of hay, etc. or I can use labor saving machinery. I can feed 5 head or feed 500 head. I can feed from a bag or I can raise my own feed. None of that adds any value to an animal - the animal will still weigh the same and be graded the same.

Now it is time to sell that steer; I can bring it to a local sale barn, packer, whatever and be paid market price of say $1.00/lb. Or I can sell this same steer directly to my brother, mom and dad, or friends for $1.50/lb. I personally feel guilty doing that. If my buddy has a repair shop and the going rate for a brake job all over town is $100 (market price), and I walk in the door and he charges me $150 does that sound like a good friend? Or does he feel that I can sleep better at night knowing who did the job and where the new pads came from so that is worth the extra cost? When I go to him for repair work I am expecting to pay the going rate, no more, no less. Why would it be different if he wanted to buy some beef from me?

I know people will say their beef is so much better than everyone else's and they can't raise enough beef to fill their orders. That is fine and I guess I am happy for you, but most consumers don't pay any attention to the cattle market and just assume they are getting a good deal if they buy direct from the farmer. And if you think your beef is better than what comes from a feedlot, I guess you'll have to explain to me how.

I'm not trying to insult anybody, that is just how I see things.

Another way to see things is to look at the prices in the meat cooler at your local supermarket. By providing your local home raised beef to your brother, family and neighbors at what is to you a good price ($1.50 in your example) you are also providing good beef to them at way below what they would be paying for beef at the local supermarket. You are giving THEM a "good deal". You both "WIN".

Your reference point needs to be at the supermarket meat counter, not the cattle sales barn or futures. The supermarket is their alternative and compared to that your price is probably very attractive. I won't even get into the possible quality aspects of the comparison. jmho. Jim

 

[OK Jeanne]

And if you think your beef is better than what comes from a feedlot, I guess you'll have to explain to me how.

You really should see the DVD documentary titled "Food, Inc." It's a real eye-opener, not just about
beef but also chicken. Apart from the death of the little boy, a most memorable part is about
the facility that produces ammonia cakes to be used to soak the ground beef to kill the $hit.

 

[bannedagain]

In this area it is fairly common for a person to make a locker appointment for a beef, then call the local salebarn and have them buy a nice fat steer or heifer for them. Then get one of the hub cap belt buckle cowboy's with a trailer to deliver it for $50.00. $1400 for the steer, $50.00 for the trucking, $360 for the processing, $1810.00 total.

$2.02 per # hanging or $3.31 per # cut and wrapped.