Beef Costing Ready Reckoner

So how does this ready reckoner work? Firstly an average yield from a side of beef was worked out over a dozen freezer orders (that's why there is no beef brock). You can use this but really you should work out your own average yield based on your maturation, your trimming and your cattle.

The next thing was to see what increases in selling price were required to maintain the same margin when prices went up. Before this could be done we need to work out what weighting each cut is going to have to achieve the same margin. A factor that appears in column A was worked out for each cut e.g. Round Steak was H4 divided by H2 = 3.

This factor appears in cell A4 and this value is then multiplied by the cost in I2 to get the new selling price in cell I4. This is then replicated through the whole sheet to give the mathematical answer on just how much to move each selling price.

The spreadsheet on the website allows you to alter factor values to better reflect your desired gross margin and the prices you feel achievable. In other words if you could not raise the price of Fillet Steak, by keeping it the same at £XX.xx (key that in I14) the gross margin reduces by 0.1%.

This is not as complicated as it sounds. Please give it a go. If you have any questions or would like a spreadsheet made up using data from your own beef please contact Douglas on 01738 637472.

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