MARKETING NEW HAMPSHIRE McIXTOSH APPLES 



13 



priced above 30 cents is not popular with consumers, but price in- 

 creases do not always reduce sales if the product is really good and if 

 the figure reached does not appear unreasonable. Many shoppers 

 assume that the higher priced apples are better, and some of them will 

 buy the article of highest price because they insist on having the best. 

 When prices on three-inch fancy Mcintosh were increased from 4 lbs. 

 for 29 cents to 4 lbs. for 31 cents demand kept up surprisingly well. 

 Even when prices were increased from 4 lbs. for 31 cents to 4 lbs. for 

 33 cents the percentage of three-inch apples sold actually increased 

 (Table 7). 



Table 7. Sales Before and After Price Changes 



Price 



Tuesday sales Price change 



Three following 

 davs 



3 inch 



Mcintosh 

 2 l / 2 inch 



Mcintosh 



4 lbs. @ 31 cents 45 per cent 4 lbs. (5 33 cents 58 per cent 

 4 lbs. @ 29 cents 55 per cent (no change) 42 per cent 



In another case where the price of one lot of Fancies was in- 

 creased from 4 lbs. for 29 cents to 4 lbs. for 31 cents the actual per- 

 centage of sales of that lot increased from 77 per cent to 85 per cent 

 of the total of the two lots involved. 



It is not inferred here that these are normal situations, but the 

 cases cited indicate that we must be careful in making assumptions 

 about the price reactions of customers unless we make observations 

 under actual market conditions. 



Average Retail Prices 



Figures based on 285 records taken in November, December, and 

 February indicate that, of the various types of stores, self-service 



Fig. 10. Relative Sales and Returns from Facing and 

 Polishing Apples. (Percentages in each case refer to per cent 

 of all sales and all profits for the three lots. ) 



