As we talked about two years ago we serve a lot processors in our market.  Whether it is fish, beef, pork or poultry as soon as you touch a knife to a product money can be lost or gained. Reviewing the Cutter's Dilemma seemed appropriate after attending the Seafood Show and seeing that a lot of small to mid-sized guys just aren't getting their costs right or their yields.

Not the dilemma it used to be.

When dealing with fresh protein products one of the ever present challenges is to make sure you don’t lose money. We have talked many times about capturing the weight properly, but that is just one factor. Let’s look at how you capture costs and what you can do, besides those tons of spreadsheets, to make sure you price that cut of rib eye properly. It is important to remember that our fish audience, which is also very large, has the same issues that the meat and poultry guys do. Just because it is a different species does not change the problem. Up to this point in time our Food Connex Cloud offering did not offer cost or inventory yielding, but thanks to working with some key customers in California we have been able to add this capability to our Cloud offering.

Prior to the advent of more sophisticated Cloud based services specializing in food processors these systems were beyond the financial reach of small to medium businesses. Now because of advanced systems based on the Cloud we can gain these advantages. With the addition of templates to our items we can determine the yielded cost and the movement of your inventory from the cut to the yielded item. Below is a good example of our cost yielding template.


Here we are expecting  3 pounds of whole Mahi Mahi to make 2 pounds of 8 oz fillets.  In addition our $9/lb of whole fish cost will yield out to $13.50/LB cost making your pricing fully loaded with the cost of the whole fish. As a final touch you can create a customer shipping label.



Please review our video to see how it works automatically:
Food Connex Cloud Template Items

 

 

 

Issue 634 - The New ROI

A prospect recently challenged me to show a return on investment of two to two and a half years. For the majority of my career a 'good' return on investment (ROI) was two years, a great return was one year, and an unbelievable return was six months.  Today with our SaaS offering we're seeing customers regularly returning on their investment in four to five months, so it may be time to revisit how we think about ROI calculations.

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