ONION SUPPLY AND DISTRIBUTION. 



115 



and sells to the jobbing or retail trade. When selling to jobbers the prices 

 charged are generally less than those to the retail trade. This is done to 

 protect the jobber and insure him at least a small margin of profit, when 

 he in turn sells to the retailer. 



Costs and Profits. 

 The profits of the car-lot wholesaler vaiy greatly. Buying outright 

 and in large quantities he has a good chance for wide margins of profit 

 and aims to make as much profit on each sale as possible. Of course, 



Fig. 39. — Good Connecticut Valley onions at the wholesaler's place of 

 business. No part of the bag needs hiding because this lot is well 

 graded . 



the risk he assumes is greater than that of any other wholesale middleman 

 in the chain of onion distributors, with the possible exception of the local 

 dealer. 



His business is subject to heavy overhead charges such as rentals, 

 interest on investment and labor. The salaries of the regular salesmen 

 vary from $25 to $85 per week. Considering his services and his cost of 

 doing business his margin of profit is undoubtedly as small as that of any 

 middleman concerned in onion distribution. He must count on 2 per 

 cent, on gross sales for doing business. 



