Meat Profit Margins
I was pouring over some figures, both sales and cost and started finding my profit margins on various items in my dept. I figured that they would be pretty decent since my Price Points are rather high, and, even though meat costs are sky high, my costs don't seem that high. But as I said in my last post, I'm having a hard time selling entire loins, and am having to over trim to make my meat look decently case ready, thus significantly reducing my salable yield (this is the result of your beginning loin weight minus your trim weight. Trim means only fat/gristle/meat that goes into the bone barrel. You count ground meats into your yield). So instead of 20% profit margin, I'm making as little as 5% at times, and regularly am around 10%.
And these numbers are GROSS. Net, I'm sure a 5% PM is actually like zero profit after labor and supplies, and freight.
I've come up with a few ideas on how to significantly raise my PM's as much as 20% across the board and raise my sales at least 34% and my profits at least 17%. And this is just on three items, and assuming no increase in sales. Yeouch, that's good. I'll wait to share these ideas until after I speak with my owner, but obviously no one where I work has any idea how retail works nor how to grow a business.
And these numbers are GROSS. Net, I'm sure a 5% PM is actually like zero profit after labor and supplies, and freight.
I've come up with a few ideas on how to significantly raise my PM's as much as 20% across the board and raise my sales at least 34% and my profits at least 17%. And this is just on three items, and assuming no increase in sales. Yeouch, that's good. I'll wait to share these ideas until after I speak with my owner, but obviously no one where I work has any idea how retail works nor how to grow a business.
This entry was posted
on 8.6.05 at 21:19.
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