2 3 o THE MARKETING OF WHOLE MILK 



vary from 4.22 to 7.75 cents in June to from 3.45 to 6.92 

 cents in December. Wholesale bulk prices are as a rule 

 quoted by the gallon. The margins per quart in this case 

 above prices paid to the producer are usually a cent or 

 two lower than wholesale bottled prices. In this case the 

 margins vary from 2.38 to 4.60 cents in June and from 

 1.95 cents to 5.22 cents in December. 



It is obviously true that the price to each of these vari- 

 ous classes of trade is not based exactly on the cost of the 

 service involved. Costs vary for different dealers, some- 

 times rather widely, since here as elsewhere there are 

 all degrees of efficiency and almost every conceivable 

 combination of trade, from entirely retail businesses to 

 entirely wholesale bottled or wholesale bulk businesses; 

 but prices for each of these classes of trade are usually 

 established with a fair degree of definiteness in any large 

 city. The particular point at which price is established 

 will be determined independently for each of these classes 

 of trade 'somewhat by the relative costs, but perhaps more 

 immediately by conditions of supply and demand and to 

 a lesser extent by custom. The wholesale bulk trade, as 

 well as the wholesale bottled trade, is frequently the 

 starting points of price wars, since it is easy to make cuts 

 on prices of milk in large quantities. In fact dealers often 

 underbid each other in an attempt to sell all of their sur- 

 plus milk. 



I-t is claimed that in Pittsburg and Philadelphia from 

 90 to 95 per cent of the bottled milk is sold from retail 

 wagons. This is a much higher percentage than is com- 

 monly found and is claimed to be partially responsible 

 for somewhat lower costs of distributing milk in Pitts- 

 burg and Philadelphia. 1 



1 King, Clyde, L., The Price of Milk in Pittsburgh, p. 17. 



