A cut test, or a cut yield profitability test, is a tool that has been used for decades by effective meat marketing executives.
A cut test measures retail cut yields over time as they are produced from primals and subprimals.
The yields are measured and can be aggregated by supplier brand to give a comparison benchmark of how one cutting style or brand compares to an alternative.
Once subprimal and retail-cut costs are applied to the yields, a marketer can start to see important statistics about their market.
Data gained from implementing a cut test system includes gross margin performance, known shrink forecasting, purchasing cost estimates, sales projections, total profit, labor targets, and more.
Why the QC Cut Test was Developed:
The retail meat marketing executive has faced many economic challenges and changes in the marketplace, which have negatively impacted the sales and profits of their meat department.
As a result, the retail meat department and the meat industry in general have been losing their market share of the consumers’ food dollar.
Several factors contributing to this loss of market share have been:
- The difficulty, cost, and time needed of the meat marketing executive to regularly capture accurate sales and marketing information
- The inability to quantify true costs and profitability of random-weight, fresh meat products
- A slow response by the meat industry to changes in the consumers’ buying profiles
- A lack of an effective plan or method for the meat executive to track, measure, and profitably anticipate the impact of these consumer changes
The QC Cut Test was developed to give the meat marketing executive the tools and systems needed to effectively manage these economic challenges and changes in the marketplace, in real time.
By achieving this, the QC Cut Test helps the meat marketing executive increase their department’s total sales and net profits.
Increased sales, profits, and consumer satisfaction at the meat case will result in increased opportunities for the entire meat marketing industry.
Benefits of using the QC Cut Test: