Meat Price Costing for Butchers.
Butchers who need to know what profit they are making on their butchered cuts have a tough time because not all meat from a butchered carcase sells at the same price. Obviously premium steak cuts sell for more than meat used for ground meat.
It is impossible for butchers simply to buy say a side of beef at $10 per pound and sell each and every cut or product at $15 per pound. Who is going to pay a price of $15 per pound for mince.
So butchers work on a principle called perceived value. Some of the more tender cuts are considered to be more valuble than others. This cause butchers a problem when trying to find out the profit they are making on a carcase. Normally how this is done is by performing a block test. This means taking a carcase, butchering it and weighing the amount of the cut. Obviosly a carcase weighing 100 pounds doesn't produce 100 pounds of saleable meat. There is fat, skin and bones that aren't normally sold at retail prices.
Then the butcher has to determine what price he can sell the individual cuts for, sometimes according to market prices or even what his competitors are selling for. Once this is done he can do the maths, work out how much he would get by selling all the butchered meat and therefore calculate the profit.
The problem lies though is that the cost of wholesale meat rises on falls almost on a daily basis which means the whole process has to be repeated, very time consuming.
With the advent of computers, a butchers life can be made easier. Using a specially program spreadsheet or specialist software such as Meat Costings Software the task of costing meat can be done much more quickly and regularly.
Details of such a program can be found at