In the long run perishability, cost of special storage and 

 display facilities, and rates of turnover, in addition to supply and 

 demand factors and competitive conditions, are among the important 

 elements which account for the difference in retail margins. Caution 

 must be exercised in comparing gross profit ratios for shrimp products 

 to similar ratios for other grocery store lines. Typical margins for 

 such lines which were furnished to the United States Fish and Wildlife 

 Service by A. C. Nielsen Company are reproduced below. 



TABLE VI - 7. --AVERAGE GROSS PROFIT MARGINS 

 AT RETAIL, SELECTED GROCERY LINES, 1955 



Average gross profit 

 Product class as percent of 

 retail price 



Canned vegetables 23.5 



Csnned fruit 22.9 



Paper products 21.3 



Tea (package and bag) 20.9 



Ready-to-eat cereals l6.5 



Soluble coffee 11.1 



Packaged detergents 9*8 



Regular coffee 1.2 



More meaningful comparisons, perhaps, can be made on the basis 

 of markup percentages for competing fish and shellfish products obtained 

 by the Nielsen Company in connection with its study of retailer attitudes 

 and marketing practices (see the last peurt of the retail phase of this 

 survey) . These percentages as well as similsir markup percentages com- 

 puted for shrimp and shrimp products are shown in table VI - 8. 



The average markups on shrimp products^by comparison with 

 competing fish and shellfish products, appear to be relatively high on 

 the basis of this tabulation. On fresh shrimp the markup was nearly kl 

 percent against 25 percent on all fresh fish. On the other hand, it was 

 below the 50 percent which was the higher limit of the range of fresh 

 fish markups. Similarly, the average markup on frozen shrimp was well 

 above the avereige markup on frozen fish^ but below the higher limits 

 of the markup ranges for these products. 



33 



