Maximizing Space and Profit with Made-to-Order Meat Bundles

About

Nakul Patel, Mt. Plymouth IGA
Sorrento, FL
Meat Department
Department Size: 20' fresh case, 16' lunch/packaged meat case, 
8' doors for frozen meat/fish case
Annual Sales: $6.3m

Strategy

Our meat department is a clear differentiator for us and we knew we could sell more, but we didn’t have the room or the staff to make that happen. Then it hit us: We might not have room in our meat case, but we certainly had room in our cooler. So, we used an old play from 30 years ago: sell premium cuts of meat in a discounted bundle and market them for order in-store and online. There was no shrink because what we ordered from our suppliers was already promised. And it didn’t affect the case because we filled the case first, cut the meat for bundles during down time, and then stored it in the cooler until the shopper picked it up. Shoppers loved it, and now we’re pulling in an extra $20,000 a year in sales that didn’t exist before. We’ve been doing it for several years now, and even with our customer count going down because of the new Publix next door, our meat sales are holding steady.

34%
Margin on Bundles

372%
Year-Over-Year Meat Bundles Sales Increase

2.7%
Year-Over-Year Meat Department Sales Increase

Why it Works

For Our Shoppers

Quality & Experience
Bundles feature premium meats—Angus beef, Boar’s Head bacon, etc.—marketed in a unique way (The BBQ Bundle, The Game Day Bundle, etc.)

Value
Bundles offer shoppers a discount compared to what it would cost to buy the same cuts straight from the case.

Convenience
Meat comes pre-portioned for easy meal planning.

For Our Store

Easy to Implement
Create a sell sheet to place in your ad, online, and in-store.

No Product Loss
You cut and sell based on orders. No Additional Space Needed.

Convenience
Scheduled pick-up time means you can set up your meat case first, then put orders together during slow times.

Tactics

1. Put together your meat bundle offering.
   Mt. Plymouth's Sampler Bundle
   4 lbs. Breakfast Sausage
   6 lbs. Ground Chuck Patties
   5 lbs. Pork Chops
   6 lbs. Beef Cube Steaks
   8  lbs. Ground Chuck
   Two 5 lb. Whole Fryers
   2 Slab Ribs
   4 lbs. T-Bone Steaks
   Two 3 lb. Chuck Roast
   
2. Price your meat bundle with 25-35 percent margin.
   Mt. Plymouth IGA sets one price at the beginning of each month based on market price.
3. Advertise your meat bundles online and in-store. Be sure to set a daily order deadline and scheduled pick-up time. Mt. Plymouth IGA accepts orders until 6 a.m. for same-day pickup. Orders are available for pickup after 3 p.m. Mt. Plymouth IGA has online ordering, but you can also place a digital flyer online for shoppers to call in/email to order and pay in-store.
4. Once your orders have been submitted for the day, have an associate in your meat department cut and prep the bundles for pickup.

Pricing

The items in the bundles are always the same, but the price varies monthly with the market. Mt. Plymouth IGA sets a month-long price based on market value at the beginning of each month.

Pro Tips

• Shine a Light on It
  Marketing is critical when selling meat from the backroom. Mt. Plymouth IGA uses their weekly ad, POP, flyers, and social media.
• Turn on the Showmanship
  Create an experience for the bundle buyer and spark interest among other shoppers by making your butcher the star of the show. Mt. Plymouth IGA stores their meat bundles in the cooler in portable crates, then when shoppers arrive to pick up their bundle, the butcher will walk them to the checkout lane and unload the meat bundles, showcasing every cut and answering questions.
• Seasonal Sells
  Create seasonal bundles as appropriate, i.e. Valentine’s Day and Holiday bundles.