TQl6 



Number of Stock Turn-overs 

 Tlu' tiling that is of primary interest 

 to the producer and tlic johber is 

 whetiier the retail dealer turns his 

 stock over in the (piickest possible time 

 and thereby gives the maximum dis- 

 tribution of fresh fruit to the consumer 

 and at the same time reduces decay and 

 waste to a minimum. With the fruit 

 stores, popular stores, stands and better 

 grocery stores, there is little question 

 but that every art known to the mer- 

 chant is used to promote quick sales 

 because the progressive merchant 

 knows that his net profit at the end 

 of the year depends on the number of 

 turn-overs he gives his capital. 



But with the country merchant and 

 the small retailer who carries a box or 

 two under the counter or in an incon- 

 spicuous place in the store, the answer 

 is not so clear. Here is an opportunity 

 for continuous and sympathetic co- 

 operation between the producer, the 

 jobber and his traveling salesmen in 

 developing the best retail fruit displays, 

 the best retail merchandising methods 

 which will attract the consumer, in 

 helping the retailer strengthen his 

 strategic position of personal contact 

 with the consumer and thereby giving 

 wider and quicker distribution. One- 

 half of the consumers of the country 

 are served by the small town and 

 country merchants. Oranges and lem- 

 ons are self-sellers if artistically dis- 

 played. We know that many jobbers 

 co-operate with the retailer and con- 

 duct an educational campaign among 

 them. One leader among the retail 

 merchants of a community is a power- 

 ful example in good merchandising 

 methods. Whatever he does, the others 

 are likely to do. Here is an oppor- 

 tunity that the jobber can promote 

 through his salesmen by developing a 



BETTER FRUIT 



frank co-operation with the retail mer- 

 cliant, and in developing pacemakers 

 among the retailers. It is an almost 

 undeveloped Held in the average small 

 town or country ilistrict. Dealer serv- 

 ice aids in the form of artistic window 

 displays, which make the consumer a 

 friend of the store and create a desire 

 for the fruit, mass displays of citrus 

 fruits with other fruits and vegetables, 

 which should be the central feature of 

 the grocery store because of the profit 

 to the dealer, and local advertising as 

 supplemental to national advertising — 

 these are the lines of effort that are 

 most likely to show returns in the 

 smaller towns and country districts. 

 They are the lines that give the maxi- 

 mum distribution — an increased outlet 

 for the producer, a larger business for 

 tile jobber and a profit to the retailer. 



The Jobber's Cost of Doing Business 



The average jobber's gross profit for 

 distributing citrus fruits to the retail 

 dealer is not above the average jobbing 

 cost of distributing food products as a 

 whole. It has been shown by Mr. Par- 

 lin, from extensive data secured from 

 all parts of the United States, that the 

 local food jobbers doing a business of 

 ••^.'jOO.OOO or under, usually have a cost 

 of 5^3% to 61/2%', while those doing a 

 business of $500,000 to !}!l,500,000 have 

 costs of 7% to 8%, while the sectional 

 jobber whose volume of business varies 

 from .$2,000,000 to $8,000,000 usually has 

 a cost of 8% to 97c.. 



From the data which the citrus in- 

 dustry has secured it is evident that 

 the average fruit jobber averages a 

 gross profit of 107o to 13% on the sell- 

 ing price, including decay losses. This 

 is probably not far from the gross 

 margin of the average food jobber. 



3 



Page 7 



The average fruit jobber is perform- 

 ing a vital economic service as a 

 banker, an assembler and distributor 

 of fruit. What is needed is less radical 

 discussion of the jobber and a better 

 mutual understanding of the problems 

 of the producer, the jobber and the 

 retailer, to the end of a better working 

 relationship' in solving the big problem 

 that affects all, i. e., the wider distri- 

 bution of the rapidly-increasing fruit 

 crop. 



Abnormal Gross Margins 

 The jobber problem, however, is not 

 without its less favorable aspects in 

 some districts where competition does 

 not have full play. Here the jobbers 

 often try to lessen competition by 

 gentlemen's agreements or other forms 

 of understanding. They impose a high 

 gross profit on every box of citriis 

 fruits sold in the city and occasionally 

 in the country districts. These arrange- 

 ments may not adversely afTect the 

 price which the grower receives, but an 

 analysis of the record shows that the 

 high maigins restrict consumption, the 

 merchant making his profit on a few 

 turn-overs at a high net profit on each, 

 rather than a larger number of turn- 

 overs with a low net profit on each. 

 This system of merchandising restricts 

 distribution and is therefore detri- 

 mental to the citrus industry. 



The chart and table following .show 

 the elements that enter into the con- 

 sumer's dollar in a district where the 

 jobbers depend on high margins and a 

 few turn-overs in the sale of oranges: 



The Consumer's Dollar Showing a 

 High Jobber Margin 



i« vn. X,.l -T I}"' '"•"^.""J'*"'; Sii|Hr-Six. This is the car will, II,,. pnhnlcl i„„ln,-, «I,iH, 



IS V blatoilcis. I he Super-Six, on the Sheepslicad l!ay Speedway, iasi N',v,i„l,e,- ei-eahcl i,|.« 

 stock cai; recoi-.ls lor speed, durability a„d acceleration, under An',erica„ Aiiln„,nl,ilc Associalio.i 

 supeiA.s.on. The Supe.-Six is by far the handson.est. roomiest a„.i ,„oM l„v„,io„s car c , ,' - 

 duced by the Hudson facto,-y. The .ien.and f,„- the Supei'-Six is (he Kical.sl in Ihe l,islo,y of' the 

 Hudson factory. Phe plant has been doubled to produce 30,000 Super-Sixes this yeai-. 



4/^ if 



Per Box 



l"ruit on t,ee .$2.263(i 11.0% 



IIarvestil,K lO.'iS 1.9% 



''ii'-kins .3240 5.9% 



Selling 0660 1.2% 



F.O.n. California $2.76 50.0% 



rieight and ,efiigcratio„ 77 14.0% 



Delivered price ^3.~,3 64.0% 



.lobber's margin 84 15.2% 



.lubber's price .?4.:t7 79.2% 



Retailer's maigin 1.15 20.8% 



Consumer pays ?5..')2 100.0% 



The chart and table following .show 

 the elemenls thai enfer into Ihe con- 

 sumer's dollar in a dislrici where Ihe 

 ritailer depends on high margins and 

 few lurn-overs in llie sale of lemons: 



