The initial, legitimate use of performing 'Gross Weight Fillet' or 'Whole Fish Fillet' was for a customer who wants to buy the whole product, yet wants it looked at by the Vendor for quality reasons prior to shipping.
However, the more modern use of 'Gross Weight Fillet' is to mask the actual finished cost of goods by charging for the whole product and getting the processing as a 'service', so you pay for the Whole Fish Start weight but only receive the Fillet.
In any fabrication business, the True Finished Cost is generated by what's commonly referred to as Yield. When a 'Gross Weight Fillet' is sold, the Yield is the missing component of the equation and leaves the processor open to manipulate that variable. Certainly, on a price sheet the 'Cost' of a 'Gross Weight Fillet' appears appetizing, but when the entirety of the equation is played out are you really paying less or even equal to the amount other vendors were charging for True Net Weight Fillet?
Here are some numbers to think about:
Customer wants 6.9 Pounds of Fish Fillet...
Finished, Net Weight Sale of Fish Fillet
$4.00 - Cost (Per Pound) of a 10lb Whole Fish to J.J.
69% - Yield on a 10lb Whole Fish
$5.80 - Yielded Cost (Per Pound) of a 10lb Fish Fillet to J.J.
15% - Gross Profit for J.J.
$6.82 - Invoice Cost
(Per Pound) to Customer for Net Weight Fish Fillet
Gross Weight Sale of Fish Fillet
$5.20 - Invoiced Cost
(Per Pound) to Customer for Gross Weight Fish Fillet
When Customer A looks at a price sheet comparing these two 'Costs' for the same 'Fish Fillet' they believe there is a savings involved. However, the only person gaining here is the vendor. As the customer, do you know what the yield was for the Gross Weight Fillet? You should ask. Then you'll need to trust in the validity of what you are being told is the Yield and the Start Weight of that fish.
Let's do the math here and see what we get.
- Finished, Net Weight Sale of 6.9 Pounds of Fish Fillet (Cut from a 10 Pound Fish) ... 6.9 X $6.82 = $47.06
- In order to calculate the True Finished Cost from the Gross Weight Fillet that was quoted you need the yield, 69 Percent: $5.20 / .69 = $7.54. Now, $7.54 X 6.9 = $52.03
It's All In The Numbers! When comparing costs on a Price Sheet, if your seeing Gross Weight Fillet you must know your Yield (And trust it!) to truly calculate your Finished Net Weight Cost. Without it, you will never know what your REALLY paying! It may not be the 'deal' you thought it was.
If you insist on Gross Weight Filleted items we can do that for you. If you are comparing prices between Gross Weight Fillet and Net Weight Fillet, be sure to have all your information and do the math!
