OUTLETS AND METHODS OF SALE FOR SHIPPERS. 19 



or who does not enjoy a reputation sufficient to warrant sales on 

 advance orders. An f. o. b. sale to traveling or field representatives 

 of distributors resembles an "on- track sale" at the market center, 

 because inspection is made before the purchase price is agreed upon. 

 Customarily sales are for cash. This method of sale is limited to 

 specialized sections which annually attract many buyers, for com- 

 petition among several buyers is almost a prerequisite to securing 

 f. o. b. sales. The average speculator will avoid cash f. o. b. sales 

 where possible, but may be forced to buy through keen competition 

 and limited supply. Furthermore, if there are only a few buyers in 

 a certain district, and they know that the growers are more or less 

 dependent upon their offers, combinations may be effected which 

 will result in reducing prices materially. The f. o. b. sale is un- 

 doubtedly the most satisfactory for the average grower, for in a 

 majority of cases it is unwise for the producer to attempt to play 

 the market and trust to his own knowledge of market conditions in 

 shifting his car from one larger center to another, excepting as he 

 does so through a cooperative selling organization. 



Sales on f. o. b. terms through city representatives, such as brokers 

 or association representatives, or finally, direct to car-lot wholesalers, 

 are made most frequently by cooperative associations in specialized 

 sections. One of the prerequisites is an established reputation on 

 the part of some association which stands back of the products. 

 Comparatively few individual producers ship in large enough quanti- 

 ties to have such an established reputation. 



These sales are very rarely for cash; in almost all cases they are in 

 the nature of orders from prospective customers secured by city 

 salesmen or brokers. Salesmen solicit orders for future shipment, 

 instructing the associations or shippers as to the time the goods are 

 desired. 



It is customary in making f. o. b. sales to allow inspection by the 

 purchaser at destination. With perishables this is almost a necessity, 

 and there are practically but two reasons why a shipper should refuse 

 inspection at the distribution point — either because he knows that 

 the quality of his goods does not meet the contract specifications, or 

 because he doubts the willingness of the buyer to accept the goods 

 is ease oi a decline in the market. However, with proper business 

 precautions in selling methods, and with an average amount of 

 honest; on the pearl at the shipper, neither of these conditions should 

 arise. It la understood that in the case off. o. b. sales to traveling or 

 field representatives, inspection is made on the track at the time of 

 sale. Under average conditions, inspection must occur, in nearly, 

 ever; instance, at either the point o£ shipment or delivery. 



Certain disadvantages and limitations attend sales on "f. o. I). 

 de iimiiion" terms winch do not applj to cash f. 0. I>. sales at point 



