Make Sure You Know Your Margins From Your Mark-Up
It’s important to understand the difference between margin and mark-up - because it could be the difference between profit and loss!
For example, a mark-up of 25% produces a profit margin of only 20%. That’s because the mark-up is the difference between the cost price to your business and your selling price. The gross margin is calculated on the difference between the gross profit and your selling price.
Your gross margin should be sufficient to enable you to meet the other costs on the business and produce a profit.
Beef and lamb yields are determined by carcase classification, cutting method and how a butcher cuts the meat. It is important to conduct your own block/cutting test as every butcher cuts slightly differently which will affect yield and costing. While AHDB Beef and Lamb has made every effort to ensure the formulas in the costing tools are accurate and up-to-date, it cannot be held responsible for errors or incorrect calculations.
Yield and costing data published on this website should be used as a guide only and you should always check your calculations.