Marketing fed cattle using grid pricing has become a popluar way to sell cattle. One of the most important beef characteristics, according to consumers, is beef tenderness. USDA quality grades are poor predictors of meat tenderness. However, mechanical shear force does objectively measure tenderness. This study illustrates how problematic USDA quality grades are at assessing accurate beef tenderness and proposes and evaluates a tenderness-based valuation system based on slice shear force technology. We show that cattle of all quality grades are substantially over- or under-valued when using a grid realtive to a tenderness-based valuation system.