Dec, 1929] 



ROADSIDE MARKETING 



11 



mostly a matter of clumce. The forty-eight stands^ that sold no home- 

 grown farm produce show total sales averaging $2209 each. This is 

 low compared to the average for the whole 103 and means that the 

 55 selling some farm products must average over $3000 each. A sig- 

 nificant figure is that denoting the proportion of total family receipts 

 whicli is represented by the total sales at the stand. This averages 

 67.9 per cent for the 98 places where "other income" could be secured 

 by the enumerator. There were 19 of these which obtained their total 

 family receipts from roadside market sales, averaging $3,169. 



In order to get some idea of the probabilities in the different classes 

 of sales as found in the group surveyed, five records were selected from 

 the whole 103 that showed the largest sales in each class. The aver- 



Table Y. — Average gross margins at stands as estimated or recorded by proprietors 



*Ice cream margins were practically impossible to get from the present exper- 

 ience of roadside stand operators. A few had raised the question of profits in 

 their own minds and a very few had attempted to get some check on the differ- 

 ence between costs and sales. One proprietor checking up carefully found a 

 i'we gallon can netted him sixty-eight cents after paying for cones; another got 

 a gross margin of thirty-five cents on a three gallon can and iced it for himself; 

 still another got thirt.y cents on a three gallon lot which was iced by the com- 

 l>any; and finally one who kept very accurate records on all his business had a 

 margin of nine dollars for the season after paying $247.30 for ice cream, $18 for 

 .salt, and $50 for ice. These represent margins of from three to ten per cent, 

 but doubtless are not typical for the group as a whole. Some assumed they 

 were making reasonable profits, while several had discontinued handling ice 

 cream altogether; the majoritj' were selling it regardless of profits and without 

 question as a matter of ser\ice. In the few cases where a gross margin figure 

 has been used in this study 20 per cent is assumed to be the best approximation 

 possible. A survey of dealer profits for 58 drug stores merchandising ice cream 

 since made by Boston University [Boston University, Bureau of Business Re- 

 search, Dealer Profits on Ice Cream, Jan. 28, 1929] showed an average gross 

 profit of 24.7 per cent on sales. This was figured on a cost of $1.30 per gallon. 

 The average cost to 32 roadside stands was $1.38. Making and adjustment for 

 this difference their gross margin on this cost would be 25 per cent, assuming 

 that they sold at about the same price. But doubtless the methods of handhng 

 and storing at roadside stands in regard to temperature and dipping practices 

 would be conducive to more shrinkage rather than less. 



**Soft drinks usually involve considerable expense for icing and often some 

 loss of empty bottles. 



