July, 1930J 



Operating Costs of Grain Stores 



19 



As a rule the dealers did not enter any bad debts expense until they 

 were positive the account was luicoliectablc. Tlioy did venture the 

 opinion that many of their accounts probably would prove worthless if 

 they had to force collection. On the other hand, the cash stores had no 

 bad debts expense. (Forty-nine stores were found in the survey which 

 did not incur any bad debts although they had extended some credit). 

 Some managers are selling over twice as many dollars worth of 

 goods as others with about the same amount of expense for other 

 costs. (Table 14). Apparently Store 47 has the best other cost ratio 

 to sales. However, it is doubtful if the average store could function 

 satisfactorily with this small amount of expense. The store has no 



Tahi.k 14 — Variation of Store Sales Compared with Other Costs 



telephone, and does no delivering. Stationery and postage expense 

 amounts to $10 and fuel to $30. There was $40 in bad debts, though 

 the store had 90 per cent cash sales. No money is paid out for de- 

 murrage or for interest on borrowed capital. On the other hand, it is 

 undoubtedly costing Store 179 more for other costs than is necessary. 

 Total sales for Store 47 are only $18,000, whereas Store 179 has 

 $104,700 sales with $3142 of other costs or a ratio 6 times as great. 

 There are many instances where similar comparisons might be made. 

 The average other costs for the 41 stores was $.0174 per dollar of 

 sales. There were ten stores with other costs per dollar of sales less 

 than $.01, twenty with $.015, six with $.025, four with $.035 and one 

 with $.075. Seven of the cash stores are in the first group where other 

 costs are less than $.01. 



