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Setting Meat Prices - freezer orders.

B

burnt

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Feb 28, 2008
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Location
Mid-western Ontario
Would some of those who have posted their specific cut prices on here before mind updating us with them? And how you arrived at setting them?

I have more customers all the time who want certain cuts rather than the usual side or split side. I guess if that's what they want, I gotta give it to them and they will have to pay accordingly. A pain in the neck, really.
 
I sell grass fed beef so it does tend to go for a little more. I looked online for people who have prices lists to see how prices compared and adjusted from there. I also look at prices at our Supermarkets "Natures Best" brand and Whole Foods, I feel my product is as good or better and should be priced as much. Selling cuts is more of a service at this level, you need to figure out your price points to balance your sales. Your region will also play a big influence, I'm fortunate enough to be 25 minutes from Portland and live in a "sleeper town". A conference I went to in Dallas by Stockman Grass Farmer had Mike Lorentz of Lorentz meats. He suggested not selling cuts if you process less then 500 per year, he suggests instead selling 12th's and 20th's of animals. That way someone can buy an amount that will fit in a normal freezer. The main reason I sell individual cuts is for marketing, I bring meat to the farmers market to get new customers. I create the impression, which is real, that the supply is limited and if they want a constant supply of my product they need to buy a 1/4 or side. Having the product in individual packages allows someone to try it before commiting. I have had many people buy one package of hamburg and come back telling me it was the best burger they have ever bitten into in their life.
My price list is available on my website at http://www.sebagolakeranch.com
I'm sure there are many more people on here with more experience then me, we have sold sides since the 90's, only been Grass Fed for about 2 years now, and last year was the first summer at the Farmers Market. We have kept Meat for sale in the freezer at the farm for a few years now. I also required a minimum sale amount for taking the time to sell to someone at the farm.
 
burnt said:
Would some of those who have posted their specific cut prices on here before mind updating us with them? And how you arrived at setting them?

I have more customers all the time who want certain cuts rather than the usual side or split side. I guess if that's what they want, I gotta give it to them and they will have to pay accordingly. A pain in the neck, really.
Click to expand...

My advise is to tell the customer to find someone to split a split-half with or charge accordingly...their convenience is your added work. I moved away from selling individual cuts several years ago because of the time it consumed and I knew the day would come I would no long have USDA labeled product(that day came this spring when, because of USDA hassling, my processor no longer does USDA labeling!!! :mad: ). My focus is buying clubs...they know the product(don't have to be sold on it) and are accustom to buying in bulk. Like Ben H, I sell 100% grassfed beef...I have more customers than I have product...without any advertising and, as my wife tells me, being a poor salesman.

A word of advise, check your regulations to make sure your product is labeled correctly to be sold by individual cuts.
 
RobertMac,
If youc can't sell cuts because of not having USDA inspection, how can you do buyers clubs? I plan to transition to buyers clubs in the future as well. I am currently using a USDA inspected butcher 10-15 min away but will be trying out a State inspected butcher about an hour away. Allowing State inspected meat to cross State lines is in the farm bill, I'm not sure when that goes into effect. I'm trying a new processor because of yield concerns (woried about quality and time spent not so much steeling), plus the one further away is $.05 less a pound, doesn't take many cattle to justify the expense. Plus they are closer to the NH border and closer for the Massachusets (Boston) customers to pick up. They have been highly recomended to me for the quality of work.
 
I actually have thoroughly enjoyed selling cuts...I get a lot of $100.00 orders. I also have learned a lot and continue to do so.

I have learned a lot about yield and make more money by working that. I offer more cuts than most anyone and always am learning how to get more out of each Primal...

You do that by kinda sticking to it.

I am developing a fairly large customer base. I learned something this year. I would have people walk by and say, "So glad you are here", but buy nothing....It puzzled the heck out of me...

This spring, those people came in and explained, "We have bought from this guy in Walla Walla for ____ Years...But he just passed away and we are so glad you are here..... My sales have doubled...This guys delivery was HUGE... And all it takes is delivering a consistent good product...

I continue to grow that...

The advice on pricing itself is good here. Do not be afraid to make money..Realize, selling cuts takes hours...But the customer base and orders snowball..The bigger the snowball the more snow it collects each turn... I have ladies bring thier friends to me to buy my Beef...

I also recognize some others at a point change. Others have preceeded me and at a point they go Past this route and only hit a few Huge farmers Markets and also find a way to retail outlet the stuff,,,,,

Anyways, that is where I am at..... Half the fun is taking a $4.00 a pound product and turning it into a $6.00 a pound Product..It also helps to really enjoy people and be a salesman at heart...

Last year we thought we had the Cat by the tail...We had people ordering weekly and monthly. Telling us they Loved our Product...Then the Farmers Market ended and so did the sales...They had our number and e-mail and had been using both to get it delivered or pick it up at the Farmers Markets.

Lesson Learned, people lose flyers, Brochures and Phone Numbers....

WE have started an e-mail list this week..Already 75 people have signed up. We send them Weekly Market Schedules, Weekly Specials, Weekly Links to sites with information and recipes... We contact them and they can order back...

We feel this will make a huge benefit to retention of our customer base..Heck, the guy from Walla Wala who passed away was legendary with his customers....And he had a ton of them...

You can go to these markets and sell....But we would rather go develop a base of customers that are ours to lose,

Anyways, we Love this and hope you enjoy it as well,

Good Luck,

PPRM
 
Thank you to each of you for your feedback. PPRM, you have put a lot pf energy and time into your marketing. I hope it treats you as well as you have treated it.
 
PPRM said:
But we would rather go develop a base of customers that are ours to lose,
Click to expand...

Exactly!!! Much can be learned from that statement! :clap: :clap:
I would much rather collect profits in a seller's market than worry about my bottom line in a buyer's market.
 
I would advise to grow slow, with the demand. It's always better to be sold out of beef and take orders for the next kill, than to run out of customers and have to call the butcher to cancel the next kill. Yes, I've done both.

As for pricing, we priced individual cuts this year for the first time, and have yet to get them up on our website, so here goes:

Top Steaks: $12/lb

2nd Steaks(Rounds or Rib): $8/lb

Sirloin Tip Roast: $8/lb

Round Roast, Cross Rib Roast: $6/lb

Ground Beef: $4/lb

Gives you an idea. Sausages, jerky and such can change frequently, so we price it as people place orders. Good luck.
 
Thank you P.C. Now to get it going. One thing that we in agriculture have been guilty of is having the fortitude to set our prices high enough when selling to the consumer.

I am not sure if I can get that kind of money around here. For example, there is one guy 25 miles from here who is selling sides cut and wrapped for $1.75/lb as recently as this past winter. At the time, I was priced at $2.15. Stuff like that just makes me wanna throw my hands up and say what's the use . . .

He lives on a main highway and has a big 30 square foot sign out front advertising his cheap beef.

Hey, Pure Country, is life going on as normal or are the men going to get a week away from home, too, sometime soon?
 
I had a similar problem here, too many people with a couple critters not knowing their cost of production, people saying they can get it cheaper somewhere else. I switched to grass fed and haven't found a price high enough to not sell out.

1/4 3.65
1/2 3.40
whole 3.30
cut/wrapped

Ridge Shinn (promotes Hardwick Beef in Mass and Rotwaka Devons) told me I should be getting over $4.
 
The guy selling $1.75 Beef likely does not know what he is doing and it will show in his end product....

I have a well noted Grass fat guy 50 miles from me. He is actually higher, but has preached the Omega thing long and well enough anyone will give him one shot. He used to have cattle done the same place as me and he was a Grass fat guy that used it as an excuse for poor management. I saw saleyard scrubs better...

I had someone ask the difference between mine and his and I told them, "Mine has flavor"..They smiled and are now a steady customer...

AS far as growing..I have the advantage of Tyson being 25 miles from me. If I have too many, I can feed them out further and sell them there. I generally hit 85%^ choice, so they are more than happy to see me. If I did not have them, I would look at more Freezer Space and/or a local Butcher I could sell sides to. I know a guy whop does this,

PPRM
 
It is not that he doesn't know what he is doing. Rather, it's a matter of it being a small sideline for him and some cheap advertising for his mainline business. So while it is hardly a fair comparison, it does help set people's expectations in price.

I have learned to tell the complainers to "go buy it from him, see what you get." There is no need to be apologetic for asking a fair price for a good product. But it really burns when it is family that does the grumbling.
 
-LOL..I often think, "Noone in our Family buys from us"

Dad is of the belief that once you peel the hide, there is no difference in Hamburger. My customers say different... The rest of the family either have no money or are a logistical challenge.

I guess the bigger point is keep doing what you need to and improve on it. The other guys will take care oif themselves...


I have the guys buying butcher cows around here and selling it for $1.20 Hanging... It takes care of itself over time as reoputation is built...


PPRM
 
Ben H said:
RobertMac,
If youc can't sell cuts because of not having USDA inspection, how can you do buyers clubs?
Click to expand...
One person "buys the carcass" (whole or half)...which means, they write the check to the processor. Then they can divide it any way they like and cut me a check for my share.

Ben H said:
Any advice on growing to keep up with demand without getting ahead of yourself?
Click to expand...
By doing grassfed from conception to consumer, I have to run my herd according to what fits my land for optimum production. Then I service past customers first...to build my customer base loyalty. Soil fertility and irrigation would be where I would have to start to increase my production.

You are in a great marketing area. I met Ridge at a SGF conference in Memphis many years ago...he'd be a good source of information for you.
 

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