Hey Maine I'm glad you introduced this topic. How many meat managers here do regular cutting tests. Back before our Hobart scales had cutting test features, I used to do them and process the results in SuperCalc, a computer spreadsheet that preceded Microsoft Excel. I've been meanting to discuss this since a while back a new meat mgr posted some questions about cutting profitably but didn't mention cutting tests.
I'd do multiple tests of each sub-primal and save the results for several different cutting methods. For example, merchandising an Inside round into two london broils, then Brasciole and round cubes and cubed steak. or perhaps 2 LOndon Broils then top round steak or roast plus round cubes and cubed steak, etc. etc.
Eventually I had enough data on each cutting method, for each sub-primal, to calculate accurate retail yields. Each week I could update the prices with the week's pricebook and determine which cutting method was the one to push. This of course was even more important when that sub-primal was on sale. So if say Top Round London Broils were on-sale for $1.79 lb, while you have to concede you are going to sell mostly london broils out of your insides, you still had data to present the crew on what other cuts you wanted to maximize as much as possible. I also used these results to challenge corporate on the retail yields they gave us on cuts (they loved me for that ).
Even after we moved to newer Hobart scales with more cutting test functionality, I still found computer spreadsheets to be a more powerful tool.
Of course, I changed careers in the mid-90s and I belive we were using Hobart 5000s then. Have the technology in these scales continued to advance to where they now equal the power of a PC and spreadsheet?
Does everyone do this nowadays? I remember Leon posting an ad for an application that did this but wondered why one woudl buy it rather than do their own tests.
Cutting yield tests, are very important, for the many reasons you stated- often there is an emphasis on speed, but a wise meatcutter will capture extra profits by merchandising, the fall out cuts that will make you money. (Sounds like common sense) When I was sent as a new manager in a few corporate chain stores- I'd make it a point to do cutting tests(within the first month I was there)-the cutters and myself would all have the same primal, and I'd tell them we are all going to do a cutting test-the young buck cutters would fly thru it-still thinking it was an efficiency, timed test. (Often making statements to the older cutters "come on old guys, I'm done already")
the older cutters knew what was up- and took the time to merchandise
then I would explain the results very carefully, many cutters said they never had anyone do that before-and the young bulls would get an education-because the older cutters usually did much better than they did. I'd post these yield tests(results) on the wall so everyone can see them.
Most meatscales around this area is the hobart quantum-which you can use for cutting tests.
Years ago, the meat managers would do a physical inventory once a month, or quarter, now most chain stores have it all electronic-whats boughts, sold thru the register-even reduced is all tracked.
The language of business is numbers- to know the numbers and what the numbers represent in yield tests is very important. we've all seen cutters getting away with not merchandising like they should-throwing all trimmings in the burger lugs, not getting cube or stew(or a leaner grade of burger) when they should-cutting yield tests measure this.
One of the reasons I wanted to post this example- is to hopefully anyone would ask questions- even if its a simple question-the above example uses retail math we use every day
Jim I agree, tho I didnt enjoy doing it-I knew if all was taken away at store level, my working soul was in the hands of the unknown,
meaning, we all like to feel a sense of pride, when we achieve good results,- and if we did come back low, they'd be many suits to kick you around the store if I am held not only responsible for department numbers, but morale for the crew-(we all wanted to do well, we all wanted to make more) and the "measure" is out of my hands, id be very suspect of the results, I've seen times a simple error would result in many sleepless nights- they use to measure(gross margins) all the stores by district, with store names and meat manager names who came back- by the highest grosses also, we use to have what they called a back-door mix- the margin mix of what was bought, so a meat manager could concentrate purchases on low margin sale items, carry them over and make big bucks on them the following weeks I always had one of the lowest back door mix, (and highest gross)because id hammer the sale items (usually better costs) but merchandise the hell out of them-
I remember 25 years ago buying bone in chucks for 1.05lb and on sale for 1.29lb I bought in over 100 cases to carry after the sale, I'd cross cut thick bone in steaks for bone in beef ribs for 1.99lb-then marinade them for 2.39lb I took out the chuck-eye's, and made bone in stew beef for 1.99lb(we sold bone in lamb stew, so we tried bone in beef stew-alot of flavor!)-boned them out for bnls chuck steaks and bnls beef ribs, and also for burger and of course kept the steaks and roast on an "instore" special price- we moved them out -with no problem and made alot of margin above the backdoor mix(anticipated margin)
the meat supervisors use to visit me alot (often telling me what I cant do) one gave me hell for doing this- because 2 stores got out of stocks on this sale item, and I had 100 cases("your not a f----king warehouse" ) so, after that, I front loaded the sale items, brought them all in (as much as possible, not chicken) at the first delivery of the ad-which I found out later many managers were doing this , I was told later , really screwed up the buyers, that would scramble to get product during the sale, restock the warehouse, then the later in the week orders were much lighter- causing dating issues Pre-ordering came into place soon after all this.
One store I worked all the perishable dept managers would come in monday mornings at 2 or 3 am, (or we'd come in on sundays, which use to be closed)to wrap up a physical inventory- I looked around one morning and , the other dept managers smoking right on the sales floor counting away, and some managers always had a thermos and smelled like cough drops... How times have changed.
-- Edited by Mainemeatman on Wednesday 23rd of May 2012 03:07:11 AM
That's interesting how inventory has changed. when I was a meat mgr for an independent chain I had to take inventory once a week. Once I moved to a big chain, Inventory was once a month. I hated it, after working sunday having to be back at 10Pm or midnight and working all night to take and finalize the inventory.
I wonder if Pathmark has eliminated that by now. It still seems to me to be neceesary to get an accurate view of what is on hand....
Now you are bringing back memories! I had forgotten all about "buy ins".
We were measured on gross profit, retail yield, and "shrink" from that supposed retail yield. We had a buy in policy that prohibited us from buying in and carrying over more than 3 days supply after the sale. It was often difficult to do that if you tried, but the reality is was that most of us would cheat like hell. When it was an especially easy to move item like Insides, with London Broils on sale for $1.87/lb which was a regular first of the month sale item, I'd carry over enough to last the rest of the month, say 4 pallets or 80 boxes. That could make your numbers for the month. Sometimes I'd get nailed by the Product Manager but he was also measured by those numbers. Sometimes I'd get beat up for it but often he's just leave shaking his head mumbling something like "There's going by the book and there's going by your book....."
-- Edited by jimhenry2000 on Wednesday 23rd of May 2012 08:22:54 PM
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