Technical Abstract: Beef tenderness is critical in consumer satisfaction with beef steak products. Current fed cattle valuation systems do not differentiate carcasses based upon tenderness variation. However, considerable research indicates consumers are willing to pay more for tender relative to tough beef steak. This study developed a tenderness-augmentation to current fed cattle grid pricing systems. Using a large data set, we determined that a tenderness-augmented price grid would change fed cattle value by on average nearly $5.00 per 100 lbs of carcass weight relative to current valuation methods. Substantial opportunity is present to improve beef tenderness through new price signals to producers.