Hey does anyone here supply a butcher shop or other store?

Discussion in 'Meat Birds ETC' started by momofchicks, Aug 28, 2010.

  1. momofchicks

    momofchicks Chillin' With My Peeps

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    Apr 23, 2008
    Kentucky
    I went to our local butcher shop today and noticed honey and jams and other local grown items so I brought up my chickens. He seemed interested but I want to do my homework too and get some pointers from you guys. Do any of you supply a store or large market, how do I make sure I get my money? Like do I say I need this amount per bird and go from there? Thanks for any input!
     
  2. Cindiloohoo

    Cindiloohoo Quiet as a Church Mouse

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    I'd give a cost per bird based on what it costs to raise them to slaughter age plus labor and delivery of the finished product. It costs $5 electricity to hatch in my hovabator over 21 days..I usually get about 30 birds per full bator. THEN, it takes about 50-75 cents (depends on the season/free range or not?)average per bird per week of feed to raise my heritage birds(will be more with broilers). Then you want to figure in for labor and delivery of the birds. Obviously larger flocks will be a bit less to haul and for labor. That gives you a way to guesstimate the cost of raising them. I'd figure minimum of $2 per bird just for the finished product plus the cost of raising. I've never done it, so NOT speaking from experience, but it is something I have thought about. Hope that helps! Figure in all the variables or you will just be giving them away!
     
  3. momofchicks

    momofchicks Chillin' With My Peeps

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    well this last go around I processed 47 birds and I know what I need to get out of each bird. I have a sale price of $2.99 per pound but I could sale to the butcher at X amount of dollars per bird and then he would get the rest to make some profit. Which of course I would make a profit too.
     
  4. TimG

    TimG Chillin' With My Peeps

    Jul 23, 2008
    Maine
    It's a mistake to price your product based upon your expenses. Find out what the butcher pays and then figure out whether it is worth your effort. If what the butcher is offering isn't enough for you to sell to him, tell him so and give him a price that you would accept.
     
  5. gogoalie

    gogoalie Chillin' With My Peeps

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    Why would it be wrong to base sellin' a product on expenses? Over pricing? I don't understand that...I mean, you have product X that costs X to produce, you wanna put in a percentage a bit over that, in order to realize profit, particularly after selling x amount & then buyin'/producing more said product/goods....
     
  6. greathorse

    greathorse Chillin' With My Peeps

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    It is proper to work backwards from the retail price. The retailer will take at least a 35% margin many take 40 %. If a retailer wants to sell a whole chicken for 3.99lb you can take that 3.99 times .65 and that will give you what he may pay you for it. Of course you can take your expenses and your desired margin and consider that the butcher will want a 35 margin. Take your desired price divide by .65 and that is the retail. Retailers work on a percentage of the sell price not the cost.
     
  7. Cindiloohoo

    Cindiloohoo Quiet as a Church Mouse

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    Quote:I think probably because you'd be stuck with X ammount of X that you don't really need if you can't sell it...so I see where the reasoning comes in to ask the butcher what he'd pay BEFORE jumping in blind. VERY GOOD POINT btw!
     
  8. momofchicks

    momofchicks Chillin' With My Peeps

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    Well this butcher has never had home raised chicken, so I don't know if there is an x amount that he pays. Here's what I do already. I take my birds to a processor, who has a USDA guy there, they process the bird, vacuum seal it and put a label on it with my farm name, price per pound and weight. So really all the butcher has to do is have a freezer room for it. I was thinking about saying give me X amount per bird and he gets the rest. He really isn't out anything but the original X he paid me. I know with this go around anyway, what I paid out and what I need per bird to make a profit or just my money back. If all goes well I can also get my cost down, in the middle of the 8 weeks I found a cheaper feed, which next time I will start off with that. I also went 8 weeks and they were huge 6#s and so forth so I can cut a week off that this next go round. Thank you all for your input I am still in the talking stage at this point. What do you think about those ideas I have? Is there still a flaw in them?
     
  9. TimG

    TimG Chillin' With My Peeps

    Jul 23, 2008
    Maine
    I say it is wrong to price based upon expenses because the most vital bit of information is how much the consumer is willing to pay for the chickens.

    Every couple months there is a post in this forum along the lines of: people think I am charging too much for my chickens, they just don't seem to understand how much it costs to raise a chicken, they really should be willing to pay me since I am local and have to make a living.

    It doesn't really matter to the consumer what your expenses are.

    Your projected expenses should determine whether you are willing to enter the market. If the consumer won't pay the price, don't produce the good.

    @momofchicks: I would adjust your procedure so that the processor did not include a price per pound on your label. That way the butcher can more easily charge whatever he wants. I would attempt to sell to the butcher based upon pounds rather than number of birds because that is how he will be selling them and it will make markup easier. Even if you are having your birds cut up rather than packaged whole, I would try to sell based upon pounds of each cut rather than number of birds. It just seems less complicated that way.
     

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