are reasonable in cost. With the competition that exists in the markets 

 ing of canned tuna and tunalike products efficient methods must be 

 utilized, by the firms within the market. Those Urns that are not ef- 

 ficiently operated must sooner or later cease operations. 



It follows, then, that since the tuna processors are operating 

 within a competitive market 3tnicture25/ each must meet the require- 

 ments that generally prevail in that structure, and are being practic- 

 ed, by those who compete for the sale of canned tuna and tunalike prod- 

 ucts o No individual firm within the present canned tuna market can 

 reduce its brokerage commission, disallow "stock guarantees", or drastic- 

 ally reduce its expenditures for advertising and promotion of its prod- 

 ucts, and still hope to maintain its position in the market. Marketing 

 customs which have been established on an industry-wide basis tend to 

 become "industry institutions" and therefore, become a part of doing 

 business. Most reputable concenns 'i-dll not forsake established bisiness 

 institutions for short-run, dubious innovations. 



The general information contained in the above discussion of the 

 methods utilized by canned tuna processors to distribute their pack in- 

 dicates that they are doing as good a job as competing canned fish proc- 

 essors. There is also enough evidence to show that distribution and mar- 

 keting costs are no higher for canned tuna than for other canned fishery 

 products. Some discussion on the over-all aspects of that subject was 

 undertaken in the previous section. As an example of a specific item 

 of distribution cost, the bi-okerage fee is 3 percent of invoice for est- 

 ablished brands of canned srlmon, as well as canned sardines — the same 

 as for t\ina. It must be kept in mind that brokerage commissions on 

 fishery products vary according to the manufacturers or processors who 

 pay them, rather than according to the kind of fishery product offered 

 on the market. Generally speaking, commission fees may be higher than 

 3 percent of invoice if the product offered for sale is not too well 

 established on the market, and greater effort is required on the part 

 of the broker to merchandise it. Brokerage commissions are generally 

 higher than customary if the product is not regularly processed by a 

 particular firm and is being handled only as a product for off season 

 processing. In short, brokerage commission fees will vary slightly ac- 

 cording to the anticipated dollar return from the product being handled. 

 Canned tuna has become a rather basic item in the trade and is handled 

 with reasonable charges. 



25_7 The exact degree of the competitive nature of the market structure 

 was not determined in this study. 



391 



