Let's share some basics for the apprentices-from commonly asked customer questions to how to figure saleable yields and profits and other "need to knows" for a well rounded meatcutter
We have a depth of experience on here-let's share some insights
I'll start with, Gross profit, mark-up and margin, what's the difference?
gross profit is the difference between cost and selling price-never lose sight gross profit dollars is what you take to the bank no matter how you measure
Mark-up and margin is a measure of profit expressed as a ratio(percentage)
Mark-up is based on cost, Margin is based on selling price
for ex. a product costs a dollar, you sell for two dollars
2-1= 1.00 gross profit
mark-up would be 100% (100% of cost, based on 2.00 selling price)
gross margin is 50% the 1.00 cost represents 50% of the 2.00 selling price
Mark-up and margin is used interchangeably-but their is a difference- most of the industry is based on margins-the selling price-so Margin should be used more than mark-up
If a whole rib-eye costs 5.50 and we want to sell for 20% margin, what would be the selling price?
here is a simple formula-once you got it-you got it for life
cost divided by (100- desired margin)=selling price
5.50 divided by .80 =6.875 or 6.88lb
if you wanted a 30% margin (below)
5.50 divided by .70=7.86 selling price
you know the cost and you know the retail (selling price) whats the margin? (below)
hillshire kielbasa costs 3.29lb , the retail is 4.69
first-find the gross profit 4.69-3.29=1.40
gross profit divided by retail (selling price)=gross margin (below)
1.40 divided by 4.69=30%
I have margin wheels for sale!!!
this gross profit formula for margin also applies for dept gross margin
sales-purchases=gross profits, so gross profit (dollars) divided by sales=gross margin percent, however inventory levels apply -thats why we do physical inventories- need a starting and ending period and accounts for existing inventory levels
if you do weekly "purchase to sales" (without physical inventory's once a month or quarter) you need to do at least 3-4 weeks to get an average running gross (if inventory levels are high, you may have a low gross for the week, and vice-versa)
Commonly asked customer question 'why is burger dark in the middle-is it spoiled"?
Answer- the outside is bright because it has "bloomed" oxygen makes it bright red because the center of the burger is deprived of oxygen, it reverts back to it's original color.
I once pointed to a vein in my wrist and said it is purple now, but if i cut my vein, it would turn red when mixed with oxygen-then the customer got it.
'What are the grades of beef"? (In U.S)
prime choice select
each of these three major grades have 5 yield grades off each one
