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Milimon

Trim waste and loss

Equivalent clean price

Compare whether buying the product as purchased (with trim) or already clean is cheaper.

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What it is and why it matters

Many raw materials can be bought untrimmed (with trim) or trimmed. The trimmed price is always higher, because the supplier absorbs the trim and the labor of cleaning.

You can't compare an untrimmed price with a trimmed one directly: first work out your own equivalent clean price.

The formula

  • Equivalent clean price = as-purchased price × waste factor

What each value means

As-purchased price
What you pay per kilo for the product as it comes.
Waste factor
Comes from the trim waste % of that product.
Equivalent clean price
What each clean kilo really costs you if you buy it untrimmed.

Step by step

  1. Find out the trim waste % of the product.
  2. Work out the waste factor.
  3. Multiply the as-purchased price by the factor.
  4. Compare it with the supplier's clean price.
  5. Before deciding, weigh other factors: whether you have staff to clean it, urgency and storage space.

Worked examples

Whole vs. trimmed tenderloin (illustrative)

With sample numbers: whole tenderloin at $10,000 per kilo with 30% trim, and trimmed tenderloin at $15,000 per kilo.

Factor = 1.429. Equivalent clean price = $10,000 × 1.429 = $14,285.71 per kilo.

The supplier's trimmed tenderloin costs $15,000: on price alone, buying it whole and cleaning it yourself is cheaper ($714.29 less per kilo), as long as you have the time and staff.

Study notes

  • Tip

    The same comparison works between two suppliers of the same product with different trim: cured ham, squid, eggplants, oranges…

  • Tip

    The cheapest isn't always the best buy: choose the most convenient one, also considering quality and supplier reliability.

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