ONION SUPPLY AND DISTRIBUTION. 



117 



same day onions are retailed at prices ranging from 2 to 8 cents a pound 

 shows that the retailers adjust themselves to their specific trade. Gener- 

 ally, however, the retailer charges a customary price of 5 cents a pound. 

 He needs a wide margin because of waste, the small quantity of onions 

 sold, and the liigh cost of doing business. This total cost for retail grocery 

 stores, according to figures obtained by the Bureau of Business Research 

 of Harvard University, ranges from 10.4 to 25.2 per cent, of net sales. 

 The most common figure is 16.5 per cent. If the producer is to get more 

 nearly his share he must do it by shortening the route between farm and 

 retailer or consumer, because it does not seem possible that he can do the 

 work of any of the middlemen for less than it is being done now; or he may 

 co-operate with his neighbors and handle distribution along the lines of 

 big business. 



General Spread of Prices. 



It is exceedingly difficult to analyze price figures with sufficient definite- 

 ness to determine price increment added by each of the various agencies 

 through which onions are distributed. In the first place, reliable data 

 on actual charges and prices received and paid by distributors are not 

 readily obtainable; and, in the second place, margins of cost and profit 

 vary greatly through the season and between different distributors. 



From data collected at first hand it was found that when onions wei-e 

 selling at wholesale on the Boston market for 12.25 a bag, the retailer was 

 charging S3. 50 per bag, or in smaller quantities 5 cents a pound. By 

 tracing this retail price back to the producer, it was possible to calculate 

 with some accuracy the increase made by each agency and the reason 

 for it. 



Taking the average figures for the 1915-16 season: — 



Ruling price paid by consumer per bag, 

 Ruling price paid by retailei per bag, 

 Ruling price received by farmer per bag. 



$3. 50 to $5 = 100 per cent. 

 2. 35 = 67. 1 to 47 per cent. 

 1 . 30 = '37 . 1 to 26 per cent. 



The farmer's price is for onions sold directly from the field. Hence, 

 the "spread" between $1.30 and $2.35, or $1.05 a bag, represents the 

 cost of the container, costs or charges for storage, shrinkage, local dealer's 

 profit, transportation and drayage charges, wholesale distributor's profit, 

 and, in some cases, a brokerage fee. 



The " spread " between the wholesale price, i.e., the price paid by the 

 retailer and the price to the consumer, represents the cost of retailing, 

 losses through wastes and bad debts, and retailer's profit. 



In Fig. 40 an attempt is made to present these facts graphically from 

 a different angle. We are to imagine a bag of onions passing from farmer 

 to housewife; as it passes from man to man each handler or distributor 

 takes the toll for his services out of the bag; in other words, each takes his 

 pay out of the onions he handles before he passes on the bag. Of course, 

 the bag grows leaner and hghter as it proceeds. A farmer delivers to the 



