MARKETING CREAMERY BUTTER, 



27 



the deliveries at the time the order is taken, thus effecting very eco- 

 nomical distribution of small orders. In some cities, old established 

 firms use the telephone extensively in soliciting orders. Deliveries 

 are made to the down-town stores and markets daily, and to the 

 suburban stores two or three times a week. 



DISTRIBUTORS' MARGINS ON BUTTER. 



The costs of market distribution were investigated in each of the 

 cities visited which included the larger and more important whole- 



Fig. 14. — The storage of butter tends to stabilize butter prices. About one-tenth of the 

 total annual production is placed in storage where its quality is preserved at a 

 temperature of zero Fahrenheit or below. 



sale and jobbing markets in the United States. It was found that the 

 margins taken by butter distributors, in general depend upon the 

 character of the business done; that is, whether wholesale or retail, 

 and such factors as volume of business, extent of charged accounts, 

 competition, and general conditions of the market. The wholesale 

 receiver sells large lots usually at a margin of from one-fourth to 

 three-fourths cent a pound with a fair average of one-half cent per 

 pound. The jobber who distributes bulk packages or prints, em- 

 ploys salesmen, maintains delivery equipment, and extends credit 

 to the retailer, usually receives from 1^ to 2-| cents per pound gross 

 margin for rendering this service. The gross margin is not all net 



