profitably or efficiently. All individual margins must be related to 

 an over-all selling policy. Low margins and, therefore, relatively low 

 prices are charged on aany items so that customers can be attracted and 

 thus increase sales. Other reasons can contribute to maintaining low 

 margins on some items. At the same time, margins on other items will 

 be relatively high. This is illustrated in the study of the Progress- 

 ive Grocer. The margin on sales for all canned fish was 15.99 percent. 

 Whereas canned tuna was being sold at a lower margin (l3.30 percent), 

 canned sardines were being sold at a margin of 26.57 percent of sales 

 and the canned herring margin was 27.71 percent. Canned tuna is a 

 fast moving and volume item, accounting for 41 percent of the value of 

 all sales of canned fish covered in this study. Sardines accounted 

 for only 9 percent of the value of all sales of canned fish covered. 

 These facts tell part of the study as to why various canned fish items 

 are handled differently with respect to retail margins. The ri^t 

 combination of both high and low margins, so as to result in high 

 sales and a competitive margin on total sales, is the primary objec- 

 tive of large retail outlets. In the determinations of margins retail- 

 ers appear to have kept those on canned tuna relatively low. 



In the merchandising of canned tuna and tunalike fish products 

 on wholesale and retail levels, as discussed earlier, progress is be- 

 ing made and as new improved developments occur adjustments are being 

 made. Wholesalers and retailers are constantly working toward the at- 

 tainment of a position where they can utilize the most efficient meth- 

 ods of physical operations in conjunction with a realistic selling 

 policy so as to maximize their profits. The outlook is for continued 

 progress to be made in developing better methods of wholesaling and 

 retailing in general and for canned tuna and tunalike products in par- 

 ticular. However, it is likely that each improvement will have only 

 a relatively small influence on the total margin taken by those agen- 

 cies of distribution unless a revolutionary development like super 

 market self-service retailing should again occur. Since canned tuna 

 is a voliiffle item among canned fish it is likely to be haodled with a 

 favorable level of margins being set by vidiolesalerc cuid retailers for 

 this item as compared to many other canned fish items. 



BROKERS AMD SALES PRACTICES 



The physical handling of canned tuna and tuna like products has 

 been traced from the time the processor is finished withthem until the 

 consumer buysthexa In the discussion of that handling, it was pointed 



386 



