Distribution Problems 



Not all of the shrimp purchased from wholesale sources can be 

 marketed. Over the 18-month period preceding the date of the survey- 

 spoilage of product had reduced the saleable inventories of 11 percent 

 of the retail stores, according to information furnished to the Nielsen 

 Conpany field investigators. Cited as principal causes of spoilage were 

 poor storage facilities and methods, inadequate refrigeration in transit, 

 poor delivery, overstocking, and broken containers. 



Prices and Markups 



Four out of every five stores had a general price policy for 

 shrimp and all other fish 8uid shellfish products. Approximately two- 

 thirds of the stores with such a policy priced their products by adding 

 a constsmt markup to cost. Relatively few stores indicated that they 

 either varied the markups depending upon the product, or priced on the 

 basis of suggestions made by salesmen, or charged what the traffic would 

 bear, or allowed discoxints to certain types of customers. 



When shrjmp products were not covered by a general price policy, 

 prices were most commonly changed with the market. Some stores charged 

 varying prices depending on size of shrimp; others used a 30 percent 

 markup on selling price, changed their prices to meet competition or 

 priced according to policies set at chain headquarters. 



Over 13 percent of the respondents stated that they changed 

 shrimp prices more often than prices of other fish and shellfish prod- 

 ucts handled by them. The most important specific reasons given for 

 this were weather conditions and seasonal fluctuations of supply; 56 

 percent of these retailers, however, were unable to furnish an explana- 

 tion for this difference in policy. 



Changes in wholesale prices and in store operating costs were 

 the most frequently cited reasons for consumer price chsuiges. Changes 

 in demand eind in prices of competing products, to judge from the answers 

 to the Nielsen Company questionnaire, exerted a much smaller influence 

 on selling price. 



Product Preference and Product Competition 



The following characteristics of product and package were 

 considered as having an effect on consumer sales: 



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