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28 



The Florists^ Review 



SspraMBBB 23, 1920 



familiar with the real conditions and 

 competent to advise growers concerning 

 their marketing. 



The essential thing, however, is 

 specific and complete data of the mar- 

 ket in its entirety, to check up con- 

 signment accounts, to classify the 

 grades of stock of all growers and 

 wholesalers, to improve wholesale com- 

 mission bookkeeping with a system of 

 record-keeping to show daily receipts 

 as set off by each day's demand, to 

 keep records of prices received for 

 actual bona-fide sales and price aver- 

 ages for growers who wish comparison 

 of results, to reduce to a minimum the 

 difference between the prices quoted by 

 a wholesaler and those received by the 

 grower, to stop any juggling of sales 

 returns, to obtain as far as possible a 

 correct estimate of greenhouse and 

 field crop conditions, to stop the prac- 

 tice of resales against the consignors' 

 interests. Some method should be de- 

 vised of gathering and compiling data 

 regarding incoming shipments and out- 

 going bulk sales that will give informa- 

 tion to such country buyers, growers 

 and wholesalers as wish to avail them- 

 selves of the advantages such informa- 

 tion would have to offer to suit their 

 particular purpose. 



Meet Marketing Problems. 



In obtaining such accurate data for 

 the consignee and the consignor, we 

 keep in direct communication with 

 market developments, with the life of 

 the market as it really is, ready to 

 meet marketing problems as they arise. 

 The central agency will be there with 

 a consolidated front to utilize to 

 every advantage telephone, telegraph, 

 traveling and market advertising to 

 encourage team work in the wholesal- 

 ers' filling of orders, to watch and 

 scrutinize the difference between what 

 the retailer pays and what the con- 

 sumer pays. Under some such plan as 

 this I feel that the average price of cut 

 flowers is sure to be raised. More 

 satisfactory sales could be made by 

 sustaining prices rather than giving in 

 to every retail dealer who bears down 

 on prices at the first sign of an increase 

 in supply beyond the control of the 

 wholesaler. Besides all this, we can 

 protect our market. We can build a 

 stronger market with farther reaching 

 effect and increase the annual volume 

 of all sales. 



On the other hand we would not 

 directly or indirectly interfere with 

 the free competition of the market in 

 its regular course of doing business, 

 though it ought to be our ^privilege to 

 expose underhanded practices by grow- 

 er, wholesaler or retailer. We might 

 find an outlet for an overabundance of 

 stock without the duplicating expense 

 of the present competitive system. We 

 would not interfere with any changes 

 consignors desire to make among com- 

 mission firms. We would not assume 

 direct authority either over consign- 

 ments or prices, nor should we desire 

 any direct jurisdiction over any whole- 

 sale houses. 



Healthier Demand. 



With prices on a maximum and mini- 

 mum plan, the retailers would not ex- 

 pect us to succeed on low prices, so it 

 would be up to us to have a plan to 

 upset any attack on a weak market, so 

 that the retail dealer would be brought 



to a realization that our goods have a 

 price. Low prices are dangerous in 

 their effect on the public, more so than 

 high prices, and low prices have not 

 been proved to be the means of taking 

 up the waste unless the advantages are 

 to be handed over to the unscrupulous 

 dealer against the legitimate dealer. 

 If we concede that price cutting may 

 temporarily increase distribution 

 through the department store channels 

 we must admit that the price reaction 

 leaves some bad effects upon the 

 regular dealer upon whom we must de- 

 pend all the year around. 



With extreme high prices the reac- 

 tion is against the advertising stimu- 

 lant of a healthy every day demand, 

 but if the public will pay a high price, 

 I believe we will all agree to keep up 

 the price. When cut flowers are cheap 

 they sell below the average cost of 

 production. What would happen un- 

 der such circumstances if the market 

 is continued on the unregulated prin- 

 cipal of the law of supply and demand? 

 Prices without bottom and waste be- 

 yond redemption. Our oversupply 

 should be utilized to serve a more use- 

 ful purpose than the killing of prices. 



Making Waste Profitable. 



Our advertising bureau should devise 

 a way to make waste profitable. We 

 all know that quality will always have 

 its price, that quantity will have its 

 price and inferior stock has a price. 

 The best grower would still get the 

 best prices, the poorer grower would 

 get less. 



It will be argued that the assortment 

 of stock in its different grades would 

 make it impossible to divide the grades 

 or precisely match all the products of 

 the different growers. To meet this 

 contention I want to say that a con- 

 signment plan was originated as read 

 in a paper at a Chicago Florists' Club 

 meeting during the administration of 

 Fred Lautenschlager, a plan of rose 

 grading and sales accounting to make 

 it practical to establish a market con- 

 trol on such roses as are sold. 



Fixing prices under a maximum and 

 minimum plan is still a supply and de- 

 mand price, since any kind of a de- 

 mand opens the way to stabilizing 

 prices to a higher average for the 

 grower and likewise increases the in- 

 come of the commission merchant. The 

 grower could afford to lose one-half of 

 a consignment, rather than to sacrifice 

 the price because stock happens to be 

 accumulating. As long as the public 

 does not demand sacrifice prices why 

 should a retailer offer stock at low 

 prices? 



Fixed Prices Not Fixed. 



Of what value are fixed prices quoted 

 previous to every holiday by the whole- 

 saler if made without any knowledge 

 of what the conditions of supply and 

 demand may be? The wholesalers' 

 prices two or three weeks in advance 

 mean nothing when prices are subject 

 to change without notice. The prices 

 quoted are not adhered to. Four or 

 five days' previous to shipping, unex- 

 pected consignments bring on an ac- 

 cumulation, and then the drop begins 

 on the growers' expected check. A 

 most radical decline in prices takes 

 place. Reports that have come under 

 my observation have shown returns to 

 growers from one-half to one-third of 



the prices quoted on sales made one 

 and two days before such holidays. 



A maximum and minimum principle 

 under similar conditions would render 

 the growers higher average returns, 

 while under our competitive system we 

 shall always have a breaking market 

 just as soon as one wholesaler shaves 

 the prices to some other wholesaler's 

 customers. We growers pay for the 

 shrinkage and take eighty-five per cent 

 of the loss. 



Others Show Way. 



Other lines of business determine 

 their prices, whether to go up or down, 

 and hold the prices jointly until suf- 

 ficient cause makes it compulsory to 

 alter the prices. Fruit growers' or- 

 ganizations set prices for their mem- 

 bers. The theatrical business elimi- 

 nates price competition and yet some 

 manage to get more money than is 

 asked at the box office. Our railroad 

 rates are fixed by a commission and we 

 pay them. 



Get this clearly in- your mind, I do not 

 propose any plan to interfere with the 

 present competitive system other than 

 to take a lead in suggesting to whole- 

 sale dealers better facilities for better 

 prices, more uniform prices, higher 

 average prices. I believe every dealer 

 has a reason to commend the plan. A 

 market manager, we will say, costs $50 

 a day, as the total annual expense 

 would be $15,000. The manager should 

 be able to increase the annual sales re- 

 venue of the market as a whole at least 

 $1,000,000 over the highest record of 

 market sales of the last two years. 

 Growers out of this would reap $850,000 

 and the wholesalers $150,000. Would 

 such an increase to the growers of this 

 market pay for the operating expenses 

 of a central office for this market? 

 These figures show what the possibili- 

 ties are. 



To those who think a plan of this 

 kind impossible of practical applica- 

 tion, I suggest a compromise with the 

 opposing elements. Try the experiment 

 and make it prove itself. This is the 

 acid test that will decide for or against 

 the plan. It will either be abandoned 

 as a failure or it will continue as a suc- 

 cess. 



I.ANCASTER, PA. 



Club Meeting. 



The Lancaster County Florists' Club 

 held its September meeting in the office 

 of President Willis B. Girvin, Leola, 

 with a good attendance of members. 

 The newly erected King iron-construc- 

 tion greenhouse, 64x2*20 feet, planted to 

 6,000 rose plants, was an object of much 

 interest. Other houses are devoted to 

 roses, carnations, asparagus, chrysanthe- 

 mums, sweet peas, stevias and callas; 

 in bulbs there are 20,000 Paper Whites 

 and 10,000 freesias, all in fine order, 

 under the able management of the fore- 

 man, John H. Schoenberger. Mr. Gir- 

 vin is also one of Lancaster county's 

 progressive farmers and has many acres 

 of fine tobacco ready to harvest; in ad- 

 dition, he operates one of the most suc- 

 cessful feed and milling businesses in 

 this section and is a director of the 

 Brownstown bank. 



The meeting was called to order by 

 President Girvin. L. C. Dyer, who is a 

 brother-in-law of our carnation special- 

 ist, J. Wade Gaylor, gave a talk on his 



