Direct Marketing

[whiteface]

I should add that one of my customers most regular and greatest compliments to me are my honesty. You simply will not be in any business very long without it. They are all definatly aware of the price of the meat in the store and the price of the beef on the hoof. They are also all very acutely aware of the amount of pains I go through to make their meat of surperior quality including the regular "pampering" of the animals to keep them "happy" and medication free. My customers are reminded on a regular basis they have a choice and are welcome to shop anywhere including buy the animals live ( yes a little more than the going rate!) and figure out the process from there... they choose not to. Just like even so many direct marketers on Agri-ville, they know its a little bit like work and most would rather just sell (their animals throught the auction ) or buy (right at the meat counter) rather than have to think too hard or take away precious time that to many people could be better spent on vacation, who wants to "work" forever??? Not you cowman, you're on your way to Thailand to see if you can pick up Malaria. Hope you have a good time and by the way, I'm not pissy here at all, I like you enough to feel that you did deserve an explantion instead of me snubbing your post!

[cakadu]

You're quite right whiteface - direct marketing is not for the faint of heart and it takes a lot more than what meets the eye at first glance. When pricing your product - any product - you have to factor in all the things that go into making up that product, including your time and labor.

What many people do like is the contact with the person who has produced it for them and if they feel they are being treated well and honestly, they will pay more because they are paying for something that has value for them.

We've been doing this a long time now and one of the things that becomes readily apparent in this type of business is the need to stay one step ahead of who your competition is. In less than 2 years we have seen dramatic changes in direct marketing - more people getting involved and many of these are out of necessity and/or circumstances - far more competition for decent, consistent processing, more varieties of meats being offered on a direct marketing basis etc.

Even if you've been doing it for a few years, it requires you to stay sharp and on top of things. It doesn't get any better than to know that you are providing what customers want, doing it at a price that will mean money in your pocket is a totally different story.

I applaud those getting into the direct marketing business and I suspect before too long people will have to start working together because working against one another will not do anyone any good.

The most important things to remember are to know your customers and to know your costs.

[cakadu]

MGH - it has also been alluded to about cuts - with your wanting to sell just sides - your customers will have to understand what they are paying for. If it is the side "on the rail" or "hot weight", then they need to be made aware that if the side weighs 500 lbs - they won't end up with 500 lbs of meat, they will likely end up with about 60 to 70% of that (maybe even less depending on the cuts they want and the amount of trimming that has to be done.)

Many of the people that you may be dealing with do not understand the concept of hot weight and will want to buy on what ends up in the freezer.

(Incidentally whiteface, I really wouldn't want to be driving a Ferrari, even if I could afford one. Seems to me that is an awful lot of money to pay for the same view of the road that everyone else gets.)

[whiteface]

Beauty and practicality cakadu, I like you!

[cowman]

Whiteface: If you have those added expenses of course you need to add them to the bottom line. And if you have a clientele that is willing and able to pay more for the "sizzle' than actual meat then that is a good thing. I guess it's all how people view it? If you look at it like a commodity or like a "specialty" type of food.
I do agree with your assessment of the majority of consumers, however. Most people don't want to be bothered with having to run around shopping? They prefer to just buy at Safeway and they expect a level of quality and safety they can live with? I suspect a good portion of the people who have time to run around to the farmers markets and specialty shops are boomer/yuppies with way too much money and time on their hands! But that is just my personal opinion(And yea, I like farmers markets!)
You see lots of ads(or at least you did!) for homeraised, no anti-biotics, no hormones etc.etc., in the papers in that $2.25/lb. range? Now maybe they never sold any or something because you don't see them as much now? There is a guy who sells beef every Saturday at Canadian Tire. I never checked him out, or his prices, because I'm one of those Safeway types right now! Actually come to think of it, I hardly ever bother with Safeway! Mostly just eat at the restaurant! No time.
Hey I wasn't ripping you! If it works for you, you go for it! I was just trying to point out the bottom line for the new guy.

[nerves]

Cowman the most important thing here is cost of production. How much did it cost you to raise that animal? Then how much is it going to cost you to sell that animal? This idea of following the aution mart price or the fat price is an illusion we all know that this is a no win situation. Cowman you are sharp with a pencil lets see the number you come up with when you apply cost of production verses cost of selling. cowman we also sell in Calgary canadian tire on wednesday, Friday, Sunday, and in Red Deer thursday and Saturday come on down and get some real Alberta Beef.