of the canned pack. These include retail-owned cooperatives, inde- 

 pendent wholesalers, chain store warehouses, and warehousing units of 

 other large retailers. The quantities of canned tuna or tunalike 

 fishes sold to each type of wholesale distributor vary according to 

 their anticipated voLime of sales. The volune of products of the tuna 

 industry sold to chain store warehouses has increased in the post-World War II 

 period, according to available estimates from firms who pack thcs e 

 products. 



Most firms market their products on a cash basis allowing a dis- 

 count if bills are paid within a limited number of days after the date 

 of the invoice, usually 10 to 30 days. The discount is usually 1-1/2 

 percent of the invoice value. 



Brokers are paid a 3 percent commission based on the face value 

 of the invoice, and there is generally no limit on volume they can handle. 



Brokers do not conduct advertising for the companies as a rule, 

 but are requested to lend full brokerage services such as contacting 

 wholesalers, chain stores, and other retail outlets. The number of indi- 

 vidual brokerage firms that handle an individual processor's pack varies 

 from two or three per firm up to as many as one hundred for a single 

 large firm, each with a separate territory to cover. 



The larger packers have their own name brands and carry on their 

 own sales promotion campaigns. Individual tuna processing corporations 

 have been known to spend as much as one million dollars or more a year 

 for direct advertising purposes. In addition, these Scime firms and 

 others engage in cooperative advertising agreements that stipulate a 

 certain sum will be paid per case, to the buyer, upon receipt by the 

 packer of evidence that the buyer has advertised the packer's "brand". 

 Advertisir^ usually consists of space purchased in local newspapers. 

 The sun generally allowed per case is 50 cents. Agreements of this 

 nature represent a considerable cost when the amourt paid per case 

 is multiplied by the total number sold. Packers are not always en- 

 thusiastic concerning cooperative advertising agreements. In some 

 instances the agreements are construed to be effective price cuts and 

 are highly desirable to buyers. Consequently, advertising agreements 

 tend to become a "business custom" and, therefore, are demanded by 

 prospective purchasers of canned tuna. 



In contrast to the larger packers operatir\g nationally, many of 

 the smaller packers sell their entire pack to large retail outlets who 



388 



