Direct marketing

[PureCountry]

Well, we did it. We sold a whole whopping 6 carcasses to various folks in town. We made a one-page flyer for our "Locally Raised Natural Beef", and had 400 of them put in all the residential mail-boxes in town. It's all sold within one week. We now have to decide if we want to pull some of our other fats out of the custom lot where they're being fed, to fill the demand. There's 24 of them there only 30-40 days from being finished.

I'd like to rattle off another few thousand flyers and put them in every mail box in the county. On the flyer we had a line about calling if you have questions, or to arrange for a tour of our ranch. I didn't think we'd get any response to that honestly, but we did. A pair of empty-nesters on their days off from part-time jobs came out this afternoon and I showed them most of the herd and some of our rotational grazing paddocks. The wife grew up on a farm and knew her stuff pretty good, but the hubby was just enjoying the fresh air I think. At any rate, it was a fun afternoon.

If I could get the whole steer crop sold this way every year, I'd be happy. If I owned a meat shop and controlled the whole process, I'd be happier'n a tornado in a trailer park.

 

[Maple Leaf Angus]

Good move. I wish you the best in selling more that way. I have thought of spending half a day and going door to door in town and telling people what we have. Wouldn't be out very much at the end of the day, would I.

 

[PPRM]

Pure Country,

30-40 days left according to who?

I sort my own Fat Cattle...I sort the ones ready for my direct marketing ad see how my sales are. If I have excess at that point, I feed tehm another 30-40 days so they will meet what Tyson is looking for....

So, you can see why that statement caught my eye...

Ok, now for the important part. Good Job! Direct selling is very rewarding. You will come to really appreciate you are selling Meat and a trust the customers want. I think you will find a larger market for selling smaller quantities than sides of Beef. I was where you are 15 years ago. A lot of considerations and work, I wish you the best.

I support these deals as the end result is more people eating beef....

Oh, BTW, the worst temptaion is to sell too cheap. Make sure you are getting paid!

PPRM

 

[Goodpasture]

Way to go!!!!

What is fun, is KNOWING the people are getting a GREAT value for their money, and that you are getting more for your beef than the supermarkets are. People will pay more for better quality and healthier products. You can produce better quality and healthier products than a commercial/factory operation.

The other thing is brag rights. People LOVE to tell their neighbors "We buy direct from the rancher, so we know what we are getting and how it was raised." And if you provide good products for a fair (not cheap) price, one good customer will turn into a lot more.

 

[Mrs.Greg]

Good for you,I'll keep this in mind for anyone looking for meat,and if you ever want we'll for sure hand those flyers out for you around here.

 

[TSR]

Pure Country,

30-40 days left according to who?

I sort my own Fat Cattle...I sort the ones ready for my direct marketing ad see how my sales are. If I have excess at that point, I feed tehm another 30-40 days so they will meet what Tyson is looking for....

So, you can see why that statement caught my eye...

Ok, now for the important part. Good Job! Direct selling is very rewarding. You will come to really appreciate you are selling Meat and a trust the customers want. I think you will find a larger market for selling smaller quantities than sides of Beef. I was where you are 15 years ago. A lot of considerations and work, I wish you the best.

I support these deals as the end result is more people eating beef....

Oh, BTW, the worst temptaion is to sell too cheap. Make sure you are getting paid!

PPRM

Do you mind giving us some details about how you sell yours. I am seriously considering selling some on the hoof and hauling them to the buyers choice of slaughter houses. What would be a good price for a live animal (reg. angus steer ) sold this way?

 

[Maple Leaf Angus]

PPRM's last line was the most important of all. I find it hard to ask what the product is really worth because it can look expensive compared to the store sale flyer prices. Well, the reality is that it should. And cash is GOOD!

The thing to remember is that you don't want to do a lot of extra work and still end up selling at what amounts to wholesale prices. The customer needs to be aware that they are not buying a product that only has meat counter equivalency. They are buying a known, quality product with 100% tracibility!!!!

 

[Jason]

The absolute first thing you need to do is know the rail price and the processing costs.

Just adding those 2 costs together is selling below wholesale.

You have gained nothing for your effort, no matter how enjoyable you may have found it.

PureCountry, wait for the questions most consumers will ask. Some will make you think pretty hard.

Good job finding that many off the hop. A half a beef is a major commitment for todays can't understand anything but payments society.

Help those folks with recipie ideas and keep on top of your processor. Unless it is the owner there doing the cutting, they get instructions mixed up can make you look bad.

Don't show your shock when a box of beef is worth $200 weigh it out even at supermarket sale prices and it is still competative at $2.35 a pound carcass weight.

 

[Goodpasture]

I sell whole pork for $2.25 a pound, hanging weight. For beef I get $5.50 a pound, per side. Hell, lean ground beef from Excel is $3.45, and decent steaks are $9.95....for my $5.50 they get the whole shooting match....hamburger, ribs, steaks and roasts.....and it is natural....no hormones, no antibiotics, just good beef.....and I give the buyer the form for a cut list. That way they get what they want. My processor comes to the field, so I can tell the buyers the beef is not stressed by feedlots or packing houses.

 

[PPRM]

Hey guys...Here's a marketing tip.....

Get the local haircutting ladies on your side.....I have two shops that keep my flyers. My beef becoming a topic of conversation there has been one of the best advertisements ever. Don't be afraid to ive the hairdressers a free sample ....


PPRM

 

[kolanuraven]

I just spent time there today...and BELIEVE ME they seem to know all the places to eat!!!!!

Telephone...telegraph & tell the beauty parlor ladies!!!!!

 

[Shortgrass]

I sell whole pork for $2.25 a pound, hanging weight. For beef I get $5.50 a pound, per side. Hell, lean ground beef from Excel is $3.45, and decent steaks are $9.95....for my $5.50 they get the whole shooting match....hamburger, ribs, steaks and roasts.....and it is natural....no hormones, no antibiotics, just good beef.....and I give the buyer the form for a cut list. That way they get what they want. My processor comes to the field, so I can tell the buyers the beef is not stressed by feedlots or packing houses.

That is 3.48 / lb. live wt if an animal dresses 58%. What am I doing wrong? I sell some live, finished cattle @ 1.20, they pay the butcher. Our shop is charging 1.45. I don't have nerve enough to ask more, but really don't have people complain. If they didn't want it, I guess they can turn it down!

 

[PPRM]

I sell whole pork for $2.25 a pound, hanging weight. For beef I get $5.50 a pound, per side. Hell, lean ground beef from Excel is $3.45, and decent steaks are $9.95....for my $5.50 they get the whole shooting match....hamburger, ribs, steaks and roasts.....and it is natural....no hormones, no antibiotics, just good beef.....and I give the buyer the form for a cut list. That way they get what they want. My processor comes to the field, so I can tell the buyers the beef is not stressed by feedlots or packing houses.

That is 3.48 / lb. live wt if an animal dresses 58%. What am I doing wrong? I sell some live, finished cattle @ 1.20, they pay the butcher. Our shop is charging 1.45. I don't have nerve enough to ask more, but really don't have people complain. If they didn't want it, I guess they can turn it down!

I understand..I have a friend getting $2.50 for open second calf hiefers and they pay the cut and wrap....

I get $2.30 including cut and wrap...I am selling too cheap, but the last steer netted $1300..I think at Tyson i woulda got $105-1100 depending on how he graded....

I figure two ways.....

On the rail, I want it to be worth my while....$250-300 above Tyson to pay for the hassle...Remember, with Tyson, I just drop it off and GET a check in a week or so.....So, I figure tyson at $1.42 average....Average Carcass is 750 pounds on this deal. See, i save money by not feeding all the way out, but don't figure that......So, my cut and wrap and kill charges ad about 52 cents per pound....$1.94 is the Tyson Equivelant.....$300.00/750 pounds is 40 cents for my profit....So, I should maybe be $2.35 including cut and wrap...

By the Package.......Take another 60% off for loss...Find ways to capture Heart, liver and Bone sales and bring that percent up.....But, i get 450 pounds t work with......Pick your Profit...But remember, the cut and wrap needs to go up as it is 40 percent more because of your loss...Cut and wrap = .52/.60= $.87/lb.....

So..If I want $500 to pay for this, Take the $1100 from Tyson, add $500 and I want $1600 plus cut and wrap.....$1600/450 pounds = $3.56/lb...Then add the $.87 to get $4.42/lb average......

Ways to get the average up include jerky and Pepperoni......Sell Bone and get you percent saleable up......Don't balk on Burger and Steak prices....


I am also working on selling cows.....Mine are on Green Grass and corn fed out, so pretty tender....I can sell the Prime Steak cuts such as Tenderloin, New York, prime Rib and be ok...The rest to Burger that I make pepperoni out of?????? I'll make more on cows than Calves and that will encourage me to keep the erd young and problem free, LOL

Those are all quick thoughts.....Open to the fact that there are holes in them as my post was a quickee,

PPRM
PPRM...

On the

 

[Goodpasture]

That is 3.48 / lb. live wt if an animal dresses 58%. What am I doing wrong?

You are thinking beef. You need to think sizzle.

If you are going to increase for customers that already buy what you produce, you are going to have to make the added value worth it. Do you really think that by putting leather on the seats and changing the name to Lexus that it makes a Toyota worth an extra $50,000?

Go take a look at what the customers option is......look at supermarket beef. Read the label. Look at where it comes from. Check out the price per pound of good hamburger and good steaks. You can beat their prices, you can beat their quality, and still make more money than what you are right now. People are willing to pay for the best. What you have to do is act like yours is the best, believe that yours is the best, and persuade them that yours is the best, healthiest, tastiest, cleanest, beef on the market. Once they realize they can get SUPERIOR beef for $5.50 a pound, and they have to pay $12.00 a pound for something that has "12% solution added" (would YOU be willing to pay $12:00 a pound for water and color enhancer?) they learn that they can eat better for less by buying from you. As it is now, they are eating better for less, but you are giving it away.

 

[PPRM]

That is 3.48 / lb. live wt if an animal dresses 58%. What am I doing wrong?

You are thinking beef. You need to think sizzle.

If you are going to increase for customers that already buy what you produce, you are going to have to make the added value worth it. Do you really think that by putting leather on the seats and changing the name to Lexus that it makes a Toyota worth an extra $50,000?

Go take a look at what the customers option is......look at supermarket beef. Read the label. Look at where it comes from. Check out the price per pound of good hamburger and good steaks. You can beat their prices, you can beat their quality, and still make more money than what you are right now. People are willing to pay for the best. What you have to do is act like yours is the best, believe that yours is the best, and persuade them that yours is the best, healthiest, tastiest, cleanest, beef on the market. Once they realize they can get SUPERIOR beef for $5.50 a pound, and they have to pay $12.00 a pound for something that has "12% solution added" (would YOU be willing to pay $12:00 a pound for water and color enhancer?) they learn that they can eat better for less by buying from you. As it is now, they are eating better for less, but you are giving it away.

Starbucks is maybe above average at a premium price...People like the "Feel" of buying there...So, remember to ad a feel to buying your product,

PPRM

 

[Shorthornguy]

We sold our last cuts for $5.50 per lb. Hamburger for 2.75. Last one on the hoof was 1.40. Thats all natural grass fed beef. Remember you need to be paid well for your marketing time and advertizing. I am going to talk with a processor about doing a 40 lb package. I think that would suit most people better. Not everyone has a large freezer and a budget for a side of beef. I congradulate anyone who can direct market and get a better price for their product. Sure beats being at the mercy of the sale barns.

 

[RobertMac]

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.

 

[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.

Robert Mac,

I keep playing with the numbers because they do vary from animal to animal, LOL...At the beginning of the year, I wanted my retail to average $4.00/lb, but it seems to need to be higher. I was just playing with numbers yesterday and came up with the new ones.

As far a $1200/head, that is too low for all of the work involved, I agree...

On the 50 pound package, that was my first step from selling sides. I was doing 1/3 Burger, 1/3 Roasts and 1/3 Steaks. My Processor set this up so that I would use all of the cuts and not get caught up with any....

Turns out, it did help, but many folks can't even do a 50 or 40...So, then I went 20 pound packs......I had all sorts of Variety packs and people were always wantng to trade something out for something else.....

So.....I went with a price list and then another price that allows someone to create thier own variety pack if they buy 10 pounds or more....

I also sell individual packages now and had everything balanced real well. Then i picked up a restaurant that features my steaks and have had to find outlets for the rest of the line...It is a lot of work, but I feel it will pay in the long run...

BYW, if you are a processor, can't you open a retail shop there? That would be big for me,

PPRM

 

[Ben H]

I am unclear, that $5.50/lb price, was that retail or hanging? My confusion is that it seems to high for hanging but the pork price in the same paragraph was hanging.

I increased my price this year to $3.25/lb of hanging weight for sides, $.10 more for quarters. That includes processing and transportation. Customer picks up at the butcher shop. I use cryovac and pay for the labels. I get them at cost through my father (UPS Store).

Last year I incereased my price to $2.25 hanging, without processing. I decided it was easier, especially with new customers to quote one flat rate.

I also have a higher cost. Fields are smaller and further apart here, a lot of urban pressure. Taxes are rediculous in Maine. Butcher shop charges $0.60 cut/wrap, $85 rendering and $40 Kill. My beef is 100% Grass fed. I agree there is a much bigger market for selling smaller quantities. I've been selling at a farmers market Saturday Mornings this summer, mostly to get my name out. Here is what I get there for some cuts.

Ground $4.98
Patties $5.48 (1/3 #, 3/pkg)
Tenderloin $22.98
Ribeye $15.48
Flat Iron $9.98
Roasts $6.28

 

[PPRM]

I am unclear, that $5.50/lb price, was that retail or hanging? My confusion is that it seems to high for hanging but the pork price in the same paragraph was hanging.

I increased my price this year to $3.25/lb of hanging weight for sides, $.10 more for quarters. That includes processing and transportation. Customer picks up at the butcher shop. I use cryovac and pay for the labels. I get them at cost through my father (UPS Store).

Last year I incereased my price to $2.25 hanging, without processing. I decided it was easier, especially with new customers to quote one flat rate.

I also have a higher cost. Fields are smaller and further apart here, a lot of urban pressure. Taxes are rediculous in Maine. Butcher shop charges $0.60 cut/wrap, $85 rendering and $40 Kill. My beef is 100% Grass fed. I agree there is a much bigger market for selling smaller quantities. I've been selling at a farmers market Saturday Mornings this summer, mostly to get my name out. Here is what I get there for some cuts.

Ground $4.98
Patties $5.48 (1/3 #, 3/pkg)
Tenderloin $22.98
Ribeye $15.48
Flat Iron $9.98
Roasts $6.28

First,

Good for you.

I am not where I can get that. Heck, I could ship mine to you and it might land less, LOL....I think I likely either winter my calves one time less or get bigger carcasses at 18 months THat is pretty typical of a corn fed vs grass fed deal......

We may be getting an internet site before long.....I have a problem in tat I have had two price sheets before. One local and one for long distance and it is hard to maintain. Yet, I have had people say mine is as good as Omaha Steaks or better and they are priced way above mine....


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.....

PPRM