60 STATE HORTICULTURAL SOCIETY. 



age cost of packing and loading on the cars is 32.4 cents per box, the 

 average cost of freight and refrigeration is 9(17 cents per box; the aver- 

 age gro^ver's cost of the co operative method of selling, including adver- 

 lising, i.s O.G cents per box; the average mark-up of the jobber is 14.2 

 per ceni on the purchase })rice; the average mark-up of the retailer is 

 49.8 ])er cent on liis purchasing j)rice, bolli of tlie latter figures includ- 

 ing ihe loss from deca3'ed fruit. 



VARIATIONS IN DISTRIBUTING COSTS- 



A considerable variation has been found in the proportion of the con- 

 sumer's dollar that goes to the jobber and retailer in different parts of 

 the country. West of the Eockies and in Canada, for example, the job- 

 bers' costs are higher than in the east or in the Mississippi Valley, on 

 account of higher labor costs, higher rents, higher interest and larger 

 geographical distances to be covered by the traveling salesmen of the 

 jobbers. These costs are reduced in the older, more densely populated 

 parts of the country, Avhere interest rates are lower and where the vari- 

 ous costs of distribution are more economically accomplished. The job- 

 bing costs of the eastern half of the United States are often not more 

 tlian one-half the corresponding costs in the Avest. 



There is an equally wide variation in the distributing margins in 

 ditferent cities, sometimes due to the efificiency of the men engaged in 

 the jobbing business, sometimes to natural local conditions, and some- 

 times to understandings between different jobbers through which a 

 minimum margin is established. The record shows that in one city 

 the average mark-up of the jobbers is approximately 10 per cent. There 

 is the most active competition there, turnovers are quick, the margin 

 on each transaction is small and the per capita consumption is high. 

 In another city in one of the richest, most fertile states, where a few 

 friendly jobbers work together, bming cars of fruit jointly and selling 

 at a high margin on each turnover, the average mark-up for the year 

 is 22 per cent. The consumption there is restricted, sales are slow, and 

 the business is transacted on an artificial competitive basis. 



There is apparently a considerable variation in the margins, due to 

 the number of times a jobber or a retailer turns over his capital. Quick 

 sales at a small margin of i)rofit is. the policy usually followed by those 

 vviio specialize in the 'citrus fruit business. They attract the consumer 

 with ff'uit thai is always fresh, attractively displayed and at reasonable 

 [trices. They stimulate consumption by advertising and in other ways. 

 Others, especially among the country retailers, or among jobbers who 

 carry citrus fruits as a side line, do not specialize or push sales. Their 

 losses from decay and off condition are large and their margin on eacli 

 turnover must necessarily be large to protect themselves against fluctua- 

 tion in prices. These dealers are not important factors, in increasing 

 the per capita consumption. The margins charged by the retailer may 

 run as high as 75 per cent above the cost in some cities, while in others 

 it drops as low as 20 per cent. 



