296 ELEMENTS OF FARM PRACTICE 



The result of this condition was that merchants in the 

 small towns paid about the same price for all butter, 

 mixed it and sold it at a low price. Consequently they 

 could afford to pay but a low price for it. 



Principles of Marketing. — There are three conditions 

 which have a tendency to increase the price of a staple 

 product, and, as these conditions are well illustrated by 

 our creameries, we mention them here. 



A large quantity of a desirable product in one place 

 attracts several buyers, thus increasing competition and the 



Figure 129. — A farmers* co-operative creamery where a large quantity of a uniform 

 product is produced and offered for sale in an attractive and business-like manner. 



price. A uniformly good product and a constant supply 

 enables a dealer to build up a demand for something good; 

 hence he can pay a better price for it. Bringing the buyer 

 to the product, instead of sending the product to the buyer, 

 tends to increase the price, because it enables the seller to 

 refuse the price offered and wait for a better offer, which he 

 can not always do, if he has delivered his product. 



The average co-operative creamery produces from 

 $20,000 to $50,000 worth of butter in a year. This amount 

 naturally attracts buyers who are anxious to handle the 

 large product. Creameries turn out a fairly uniform quality 

 of butter, which qualification has been a very strong factor 

 in increasing the demand and the price for creamery butter. 



