OUTLETS AND METHODS OP SALE FOR SHIPPERS, 17 



growers before collection is made, often within 24 hours. In this 

 respect they differ from the broker who customarily makes no col- 

 lections or remittances to the shipper. In return for this service of 

 immediate remittances and consequent carrying of credit accounts 

 the commission merchants must charge a higher rate than the broker. 

 Because he sells in less than carloads, commission charges vary from 

 5 to 12 per cent, according to the relative perishability of the goods 

 handled, the average charge on perishables probably being 10 per 

 cent. Commission firms specialize in certain commodities, such as 

 eggs, butter, and cheese, or fruits and vegetables, or poultry and 

 game. Usually each firm will handle any shipments made to it. 



AUCTIONS. 



A rather uncommon outlet for the individual grower is the auction. 

 Auctions do not openly encourage shipments direct from the pro- 

 ducer as they prefer to be impartial sellers rather than receivers of 

 goods. In most cases where goods are so shipped, they are sold 

 unmarked and consequently bring less than commodities marked 

 with well-known brands. Auction charges usually average 2 to 5 

 per cent for handling the products of cooperative marketing asso- 

 ciations. Where these selling charges average less than 5 per cent, 

 a terminal charge of 5 cents a package sometimes is collected from 

 the buyers who patronize the auction. 



RETAILERS. 



Sales direct to retailers or to hotels and restaurants need no par- 

 ticular explanation at this point. In most cases goods must be of 

 extra fancy quality in order to make it possible to utilize this outlet. 

 Middlemen sometimes perform a great service by repacking and 

 grading products which are sent to them in unmarketable shape or 

 which have deteriorated in transit, for which service a charge must 

 be made. If the farmer desires to save this expense he must per- 

 form these services for himself. 



GENERAL SALES PRACTICES AND TERMS. 



The usual types of sales of produce may bo enumerated as follows: 



Sales ;if point of origin, sales in transit, and sales at destination. The 



terms upon which sales may be made may bo classified as follows: 



at farm or orchard, f. o. b. either point of origin or destination, 



and finally an "on-lraek" salo for cash at destination. 



.SALES AT POINT OB OKIOIN. 



Sales at point of origin may l>e either outright sales of commodities 

 before or al harvest, sales on f. o. b. terms, or sales "on joint account." 



