Direct marketing

[RobertMac]

We sold our last cuts for $5.50 per lb. Hamburger for 2.75. Last one on the hoof was 1.40.

$1.40/lb on the hoof is ~3.90/lb consumer cost for retail packages whole carcass basis <not including processing cost>($4.90/lb included)

$5.50 cuts and $2.75 GB is ~$4.13/lb consumer cost for retail packages whole carcass basis <including processing cost>

$3.25/lb of hanging weight for sides is ~$5.40/lb retail

$2.25/lb of hanging weight for sides is ~$3.75/lb + $1.00/lb processing cost = $4.75/lb retail

Ben, your butcher cost is $1.27/lb retail (based on 750lb carcass and 60% yield...goes up with smaller carcass)

I started out with a USDA label and selling individual cuts at farmer's markets...at about 15% less than your prices, but you have a better market that will support you. To come out, you have to sell enough volume to cover you time and transportation cost. But definitely worth the effort starting out to get your name out and build a customer base.

My Busines background says that I should fill the higher payng market first. Yet, the local market and reputation has gotten me to this point. That attitude of it only being about the dollar is what got the Pe Food Companies in bed with China....Likely I will always try to Service my local Market and the long distance with be the balance.....

Local market...that's how the big boys can't touch us. At our processing and marketing cost, we can't compete in the "lowest cost" game...so our product has to have difference that is of value to our customers.

 

[andybob]

Well done on your sales Purecountry. If there are other producers in your area wanting to direct market, you could network and open a shop together, and hire a butcher on a share basis.
We were fortunate enough in England to have a main road passing the farm. We built an approved shop on the farm, which gave the atmosphere enjoyed by our town customers, as they could see the free range pigs and North Devon herd from the shop. We had neighbours supply free range chickens and eggs, and the lamb was supplied from a flock grazing a well known landmark, so all the suppliers were within three miles and could be visited or seen from the road. I developed a line in dry cured hams and bacon and sausages made from basics, and the eventual popular lines were tried out as samples before being made in large quantities for sale. All meat was 'sold' to the shop by the farms, and the mark up was calculated at 30% over all running costs of the shop. Within six months there was too much work in the shop and farmer's markets for me to cope with all the cutting and packing on my own (I still had the farm to run) so we brought in a full time butcher and I only helped on a relief basis after that. My most popular draw products were the dry cured smoked bacon, and surprisingly the South African 'Boerewors' sausage which I had initially been making for an expatriot barbecue, and several customers bought some to try, it took off within weeks just by word of mouth.

 

[PureCountry]

We've sold all of this beef for $2/lb hanging weight. The carcasses have all been between 710 and 750. We're paying the kill and chill, the customer pays the cutting and wrapping. The butcher shop gives us their own cut sheets, and we fax them to the customers. Works pretty good because in our area, it's mostly small town folk who have bought beef like this before, and are comfortable withthe arrangement. We have had some people get a little confused with having to pay the butcher anything, and I can foresee us paying for the packaging down the road and simplifying the process for their sakes. The only problem with that is having to have freezer space on farm, and sitting on an inventory of frozen product. I can certainly see how living closer to an urban center would necessitate that type of marketing though.

 

[PPRM]

Well done on your sales Purecountry. If there are other producers in your area wanting to direct market, you could network and open a shop together, and hire a butcher on a share basis.
We were fortunate enough in England to have a main road passing the farm. We built an approved shop on the farm, which gave the atmosphere enjoyed by our town customers, as they could see the free range pigs and North Devon herd from the shop. We had neighbours supply free range chickens and eggs, and the lamb was supplied from a flock grazing a well known landmark, so all the suppliers were within three miles and could be visited or seen from the road. I developed a line in dry cured hams and bacon and sausages made from basics, and the eventual popular lines were tried out as samples before being made in large quantities for sale. All meat was 'sold' to the shop by the farms, and the mark up was calculated at 30% over all running costs of the shop. Within six months there was too much work in the shop and farmer's markets for me to cope with all the cutting and packing on my own (I still had the farm to run) so we brought in a full time butcher and I only helped on a relief basis after that. My most popular draw products were the dry cured smoked bacon, and surprisingly the South African 'Boerewors' sausage which I had initially been making for an expatriot barbecue, and several customers bought some to try, it took off within weeks just by word of mouth.

Likely, our Pepperoni Sticks will be what "Sets us Free"......They have ben a big hit and I am working on some marketing plans.....The thing is I am taking Hamburger and retaili git for $8.00/lb less the processing costs..I am too lazy right now to get up and go look for sure, but I think the Processing costs are about $1.50 a pond on the Pepperoni itself,

The reaction to this product is going like gangbusters...

PPRM

 

[PPRM]

PPRM, when I figure all my processing cost (what I pay the processor, hauling, labels, ect.) I had about a dollar per pound in a retail package. And, of course, that has more variables. A figure to remember...60%. 60% of live weight will get you in the ball park for hanging weight and 60% of hanging weight for retail package weight. If you are starting out, you need to get a handle on actual weights to know these percentages. They can vary greatly...same herd, same genetics.

I sell half/whole for $2.40/lb hanging weight, processing included. I just figured a half using actual weights (61.5% of carcass weight...a heifer) for a price of $4.19/lb package meat (USDA retail is just below $4.00). The ranch grosses $1000 to $1200 for animals producing a 700 to 750 lb carcass. I'm going up on prices next year!

Shorthornguy, why 40 pounds? I was thinking 50 pounds with two type packages...roast/GB and steak/GB. I agree about the low volume consumer, but I want to divide the carcass so ALL the carcass goes. I have two halves that if they don't sell in the next week, I'm going to try this.

Robertmac....Somethings I am trying that may affect all of this and I am not exactly sure where to be....Pricewise....

Heart and Liver, being able to sell this raises the yield, though not a lot...

More importantly to me lately is Bone. I have a restaurant that was iitialy interested in Soupbones. Well, a lot of pet owners were requesting to keep Dogbones for thier pets and I started to sell them. The restaurant actually was scraping the meat from the soupbones and saw the Dogbones as costing less and making the scraping part unnecessary. So, they have become my biggest customer of Dogbones using it for thier Soupstalk......

I have my Dogbones priced at $1.00/lb. I did this because I felt if I could sell them all, this would cover the portion of cut and wrap (Figured on hanging wieght) that the rest of the cuts were having to pay for....The 60% of the 60%....My yeild goes up, but average price drops....I still think it is a good deal.

We haven't sold all we have made. I am working with a Dog Groming shop on selling it and if that goes well, it could be a great deal. The other thing I am finding is the crowd feeding thier pets raw foods or homemade is big on Ground Bone......

The thing I am most interested in is growing into Jerky and Pepperoni sales......I have sample some of it and the response has been astronomical......

PPRM

 

[CattleArmy]

Direct marketing also works when selling truck loads of cattle. This year I am happy to say our calves were sold at home. This cuts out the trucking to the sale barn, the feed bill they say the feed them at the sale barn, and the sale barn comissions. Every bit saved this day and age helps. Just my opinion.

 

[Ben H]

I have had two customers ask about pet food. One is buying a side and is planning to use some for fido. Another wants to buy meat for the dog, looking for heart, liver and stew meat.

I tried getting my butcher to smoke the bones but they wouldn't do it. Right now I just get all the bones in a big plastic bag. I sell them as dog bones and don't have them individually wrapped. Freezer Burn isn't a problem. The biggest problem is the bones freezing together and breaking them apart to sell one.