- 1 - 



APPLE MARKETING (The folloTdn^ analysis of the apple marketing situation is 



presented by Fred E. Cole, Extension Marketing Specialist. With a large crop 

 of good 'quality Mcintosh to be marketed, a careful study of the factors 

 involved is highly important.) 



1. THIIIK RETAIL (August 6, 19^9) 



"Think Retail " is the counsel given by manufacturers in appraising 

 market trends and market possibilities. The advice may be v/ise for us in 

 agriculture, too. 



In recent years, retail prices have followed a pattern based upon sales 

 experience and the resulting apparent "attractiveness" to consumers in the minds 

 of store operators and sales managers. 



Retail prices were selected, in the accompanying table, on the basis of their 

 frequency of use in retail store advertisements. "A" includes prices used S% or 

 more of the time, "B" three or four per cent, "C" two to three per cent, "D" one 

 to two per cent of the time in the advertisements studied. The accompanying 

 table may be of assistance in making a comparison of prices. In this table, 20^ 

 of the sales was used as a retail nark-up and 20(i to cover handling from whole- 

 sale market to the store. These two marketing costs will, of course, vary in 

 practice. We 'believe the estimate is of some value as is shovm by the following 

 example in October, 19U8. 



At that time apples were commonly selling for 3 lbs. for 290 or 9.66{* a lb. 

 Store cost on a basis of 20:?! (sales) would therefore be 7.68^ (9.6 x ,80), 

 Allowing I4O lbs, to the bushel, the bushel cost to the store would then be 4?3.07. 

 Deducting 200 'for handling from the wholesale market to retail store, results in 

 a price of $2.67 v/hich was the prevailing wholesale price at the time. It is a 

 simple rule of thumb but it may have its value. 



Caution . The consideration given to prices commonly used in retail 

 stores does not mean that these prices should be used by growers in direct sales 

 to consumers. In fact, our counsel would be against it. If growers compete on 

 a quality basis they may keep out of destructive price competition. "Even nickel" 

 pricing on package lots seems to fit the farm-to-consumer sale to better advantage. 



"To think retail" in considering the price possibilities for 19U9 

 may be a very practical approach to the problem. 



The table on the other side of this sheet may be of assistance in translating 

 retail prices commonly used to wholesale in the six price groups. 



