Had a nice thing happen the other day...

[SRBeef]

I had a very nice thing happen the other day.

An in-town neighbor who had purchased a processed split half of my beef last spring came to our door and said she was out and needed some more of that "good beef". I told her the price and she said "fine - bring the boxes over any time".

It's not exactly like selling a potload of fats, but now that's my kind of selling! Always makes you feel good when folks like your "product".

Jim

 

[jkwilson]

Almost like being a drug dealer, but legal. People get hooked on the good stuff and keep coming back.

 

[HerefordSire]

I had a very nice thing happen the other day.

An in-town neighbor who had purchased a processed split half of my beef last spring came to our door and said she was out and needed some more of that "good beef". I told her the price and she said "fine - bring the boxes over any time".

It's not exactly like selling a potload of fats, but now that's my kind of selling! Always makes you feel good when folks like your "product".

Jim

How many customers has she sent you?

 

[SRBeef]

How many customers has she sent you?

I don't know but have had a number of other folks ask for beef. I think they call it "referral marketing". I just have not had any more to process until recently.

Once I get out of the initial startup/investment stage (just about there, hopefully) I think I could net some money at this...plus enjoy the process and the good beef.

One problem with cattle is that everything takes SO long when starting from scratch to finished, processed product. It is also a LOT of work.

I find that giving away a package of hamburger or Swiss steak is well worth the advertising.... As mentioned above folks get "hooked". Many have never really tasted good beef.

Jim

 

[HerefordSire]

There are several things you could consider. Recruit some ranchers to come under your brand (your name) as long as they agree to raise beef according to your rules. Another could be to double your volume. Another would be to increase price so you don't sell out as fast.

 

[SRBeef]

There are several things you could consider. Recruit some ranchers to come under your brand (your name) as long as they agree to raise beef according to your rules. Another could be to double your volume. Another would be to increase price so you don't sell out as fast.

I am looking to increase my volume but want it all to be homegrown under my care...just takes a while to get going. My price is based on my estimate/calculation of selling a fat for $1.30 at the sale barn. I think this is a "fair" price to the buyer and me provided I haven't made a mistake in the calculations somewhere.

I have tried to allow for the increased labor on my part....I'll do a few more and then go through the calculations again. And before everyone rushes into "freezer beef" you have to realize it is a LOT of extra work compared to loading the trailer to the sale barn. A LOT of work.

Jim

 

[LimiMan]

Make sure you aren't pricing your product to cheap

 

[Circle Mc Ranch]

How is everyone selling the beef? on the hoof price per pound? hanging weight? and what price per pound?
Thanks
I am keeping 6 steers to do the same with

 

[HerefordSire]

There are several things you could consider. Recruit some ranchers to come under your brand (your name) as long as they agree to raise beef according to your rules. Another could be to double your volume. Another would be to increase price so you don't sell out as fast.

I am looking to increase my volume but want it all to be homegrown under my care...just takes a while to get going. My price is based on my estimate/calculation of selling a fat for $1.30 at the sale barn. I think this is a "fair" price to the buyer and me provided I haven't made a mistake in the calculations somewhere.

I have tried to allow for the increased labor on my part....I'll do a few more and then go through the calculations again. And before everyone rushes into "freezer beef" you have to realize it is a LOT of extra work compared to loading the trailer to the sale barn. A LOT of work.

Jim

Good luck in trying to hire quality labor at an affordable rate for the long term. A man can get burnt out pretty fast in this business if you have a full time job in addition to running a farm. I think automation is the key here. If you could figure out how to automate your labor intensive duties, or at least better organize, then you could be more sustainable.

 

[DavisBeefmasters]

Congratulations!

Our butcher doing our cut and wrap advised us that the beef graded "prime" this year! Yeah :cowboy:

 

[Jeanne - Simme Valley]

Jim - it's sure a good feeling isn't it. $1.30 sounds quite a bit low. Have you compared what they are charging for sides of beef from your local butcher. Fats sold at sale barn aren't a very good comparison.

Hubby just talked to our steer buyer today (we're delivering tomorrow). He raved about out steers - no bawling, dig right in to the feed, never has treated one, and they grow like crazy. :banana: Made us feel real good!

 

[SRBeef]

Jim - it's sure a good feeling isn't it. $1.30 sounds quite a bit low. Have you compared what they are charging for sides of beef from your local butcher. Fats sold at sale barn aren't a very good comparison....

Jeanne, I am not selling beef at $1.30! Just using that as a "respectable" live weight fat price and working backwards from there. For example, on an 1100 lb steer I want to gross 1100 lb live x $1.30/lb = $1430 on the animal alone. Add in kill and processing and divide the total by the finished pounds of saleable beef (depending on how cut) and I see that as a fair selling price per pound for a split half which includes all cuts of steaks roasts etc and lots of good hamburger. Add a small delivery charge if out of my way. Not sure if this is the best way but seems to work. This system also makes you pay attention to dressing percentage. It is also more work than just loading the trailer.

Jim

 

[Jeanne - Simme Valley]

Gotcha! that's much better! don't want to be giving it away!!! :banana: (except for a sample)

 

[backhoeboogie]

I've started a second yellow sticky of names above my desk (at work) of folks who want a half beef. I had counted 17 names and I think it is up to 19 now. Why is it always an odd numer? It seems every time it finally evens, someone else calls.

 

[options]

SRBeef
I would think the selling price 50% above the actual value would more than cover the little bit of extra work involved

 

[SRBeef]

nt

 

[SRBeef]

SRBeef
I would think the selling price 50% above the actual value would more than cover the little bit of extra work involved

There is much more than a "little extra work" involved in selling beef this way compared to loading them on a trailer and dropping them off at the sale barn, especially as your sales volume increases.

I don't want to argue about word choices but I personally do not think current market prices necessarily reflect the "actual value" of my cattle. I think my pricing system brings them a bit closer to their "actual value".

Jim

 

[options]

SRBeef
I would think the selling price 50% above the actual value would more than cover the little bit of extra work involved

There is much more than a "little extra work" involved in selling beef this way compared to loading them on a trailer and dropping them off at the sale barn, especially as your sales volume increases.

I don't want to argue about word choices but I personally do not think current market prices necessarily reflect the "actual value" of my cattle. I think my pricing system brings them a bit closer to their "actual value".

Jim

How is dropping them off at the sale barn different from dropping them off at the custom butcher shop? Are you selling inspected beef products?

 

[SRBeef]

SRBeef
I would think the selling price 50% above the actual value would more than cover the little bit of extra work involved

There is much more than a "little extra work" involved in selling beef this way compared to loading them on a trailer and dropping them off at the sale barn, especially as your sales volume increases.

I don't want to argue about word choices but I personally do not think current market prices necessarily reflect the "actual value" of my cattle. I think my pricing system brings them a bit closer to their "actual value".

Jim

How is dropping them off at the sale barn different from dropping them off at the custom butcher shop? Are you selling inspected beef products?

Yes, the quarters I sell are processed by a USDA inspected custom butcher. They have to be to sell as I do.

Many folks who sell freezer beef have their customers pickup the beef at the processor. This is not feasible for me and greatly limits the potential pool of customers.

The work I was referring to above is basically two things:

1) the additional work of finishing a calf compared to selling feeders. And finishing in a way that the beef tastes good and is tender and meets the expectations of the customer.

2) the additional work of selling and distribution. Raising the beef is comparatively easy in my opinion, compared to selling it at a profitable price, getting it delivered and paid for and, after all is said and done, turning a reasonable profit on the total project and return on the investment required. Not only that, but doing it all in a sufficient quantity to make sense and frequency to pay the operation's expenses year around plus a little profit at the end of the year.

These items are a lot more work than taking, say, a recently weaned calf to the feeder sale at the local sale barn. I am not at my target level on any of this yet and don't mean to give the impression I've got it all figured out because I don't. But from what I have done so far I think I can make this work at a reasonable scale.

Right now you might call this a "pilot project". I am currently focusing on herd building so that I start getting close to having enough good beef to process to cover the costs involved. Trying to grow a cattle business from within just takes a long time! But I am learning along the way.

Jim

 

[options]

I guess if it works good enough and everyone is happy continue doing it. A selling price 50% above actual value of the animal in my opinion is not a fair price but it is your beef and not mine what I think doesn't matter. Taking advantage of my own customers is not something I would do just because I can.