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THE PRICE IS RIGHT 



W.D. Downey 

 Department of Agricultural Economics 

 Purdue University 



There are a number of things that can make a roadside market 

 financially successful; its location, its reputation, its products 

 its employees, etc. But none of these is really enough without 

 the right price. It's the selling price that generates income and 

 prof i t. 



Of course, the price alone is only half the picture. Volume 

 is an essential element of successful retailing. Like love and 

 marriage, both the proper price and sufficient volume go together 

 to make a successful venture. 



Let's explore how these work together and, in particular, some 

 particular aspects of establishing a price policy. 



Pricing--A Particular Problem In Roadside Markets 



The very nature of roadside markets makes their pricing prob- 

 lem unique. The wide variety of merchandise, ranging from jumbo 

 Texas grapefruit to ceramic bird baths and scenic murals of Yellow- 

 stone Falls, makes for a complex pricing problem--or should we say 

 opportunity? This very factor can be a distinct advantage in es- 

 tablishing a pricing policy leading to excellent profits. 



In the first place, the typical roadside market has little 

 direct competition. True, there may be one or two other roadside 

 markets in the area, but these are often on the other side of town. 

 And even then, it is relatively easy for the aggressive roadside 

 marketer to clearly distinguish himself. 



Although the supermarket sells some of the same products (fresh 

 fruits and vegetables), they are really in another ballgame. The 

 roadside market can and should sell an entirely different product. 

 Clearly, a 39 cent plastic bag of Florida oranges is an entirely 

 different product than jumbo California navels ready for customer 

 selection. The roadside marketer is a specialist and should capi- 

 talize on this--not to mention the wide variety of hard goods mer- 

 chandise in the roadside market to tickle the fancy of shoppers. 



Being a unique type of retailer, the roadside marketer has 

 special problems of seasonality. This may be due partly to the 

 types of products he handles but is probably more closely tied to 

 the weather and the customers' reactions to it. The roadside mar- 

 keter may use his pricing policy as a technique of evening out and 

 lengthening the busy season. 



