I had a visitor......long!!

[McGoo]

I buy local chickens for $10 - $12 each. Since she is willing to pay, make sure you charge her enough to recoop all of your costs...and don't forget to include the cost of housing and electricity. It sounds to me like many of us don't really get what we deserve for all of our costs and hard work. (of course I love my chooks as pets - so that's different.)

ps and whatever you do don't determine your chicken/turkey costs based on a supermarket! What you are offering is waaaaaaaaay better...not even in the same ball park!

 

[Ang]

I just figured how much it cost us to raise and butcher our birds. It was just shy of $4/bird. The thing to remember is your birds will be better tasting and probably bigger than the ones in the stores. I think pricing them by the pound is the best way. Good luck! Sounds like you have a good thing going.

 

[Smitty's Farm]

What an awesome story! Congratulations on the new found customers. Someone must have bragged about your eggs and sent her your way. That is really wonderful. I would love for something like that to fall in my lap. Keep us posted.

 

[CovenantCreek]

jareds44m is right -- check with your state's dept of ag to find out what regulations apply to what you plan to do. They will almost definitely require you to use an inspected processing facility and will want to inspect your storage facility (wherever you keep your freezer) before issuing any necessary permit.

Also, as someone (greyfields, I think) keeps reminding people, get a business license and business insurance to protect yourself. You will probably also want to get a sales & use tax permit -- this should allow you to buy supplies & feed without paying sales tax.

 

[silkiechicken]

I break even with feed and chick costs up here when I sell birds for $3 a lb... and so I sell at cost as my birds are self supporting. Since you have the housing for them, to not be at a loss for the cost, figure out how much the meaties eat in the time it takes to reach market weight, and figure food costs and add what you think time/water/electricty would cost you. Organic "free range" birds here at the market run 6-7 a lb.

 

[justusnak]

Thanks for all the input everyone....I am worried about the "legalities" of it all. We are by NO means a poultry "operation" and will be doing the processing outside, by the burn pit ( for the innards) with a cooler of ice water waiting for the finished products....untill I get them in foodsaver bags.
Guess I will have to thik this one over a little more. She is coming back next week for more eggs...so I will talk to her about it more then. Maybe I can have her friends and her, "order" So I know how many I will be looking into getting.

 

[dbjay417]

3 dollars a lb seems right, and thats really nothing as far as profits as far as my expense calculations have gone.

So far from my reading here it seems that the trick to making any sort of profit is to get your customers to come out for the meat, and hook them with the eggs.

Even with that said, It'll probably take a while (a few seasons) to break out of the red with respects to your expenses in coops, and houses, and feeders and waterers. The plus side is that those things are reusable.

Its a lot of work, and your labor is really almost free.

The chicken for profit gig is one of those jobs, that if you don't love it, you'd best not do it.

 

[birdnutz]

A sales and use tax permit won't get the feed without tax. It only allows you tax free if you're going to resell it. In Wyoming the tax permit and business license is the same thing. But it will allow you to take all the expenses off of your tax returns. Including all start up costs and graduated depreciation on your coop and equipment. Bush is talking about doing a accelerated depreciation that would be great for that. The draw back is you have to collect and record sales tax on your sales. but I think it would be worth it in the long run. Heck you could even take off dog food and care of your guard dog.

 

[CovenantCreek]

I stand corrected -- in TN you need, in addition to your sales & use permit, a certificate of agricultural exemption to show that you are actually doing agricultural business. With that, you are exempt from sales tax on virtually all things pertinent to conducting your business, including feeds, medications, coops, etc.

 

[hooligan]

Call your local health food store and ask how much a lb they sell their chickens for...that should give you a good idea of how much to charge, of course you would still need to mark it up a bit!
There is only one around here who sells them but they are pretty expensive!