20 BULLETIN 1109, U, S. DEPARTMENT OF AGEICULTUKE. 



salesmen) can do much in the way of pushmg the sale of a product 

 through proper display and through good sales methods and sug- 

 gestions. The exchange adopted the policy that the interest of the 

 dealers in their fruit could best be obtained by the establishment of 

 stable market conditions, thus insuring them a reasonable profit. 



It is believed furthermore that a stable market lessens distribu- 

 tion costs. It is held by the association that 'Hhe smallest liability 

 to loss and the greatest certainty of a moderate profit interests 

 dealers more quickly and certamly than the possibility of large 

 profits, coupled with the danger of serious loss." One of the reasons 

 for what seems to be exorbitant profits charged by dealers for the 

 handlmg of fresh fruits is occasioned by the danger of loss through 

 violent fluctuations of market prices. 



To avoid these fluctuations in the cranberry market, the exchange 

 has attempted to regulate distribution in such a way as to eliminate 

 the ''glutted" and ''famine" markets which were so disastrous to all 

 concerned, including the consumer. 



COORDINATING DEMAND WITH SUPPLY. 



Successful marketing consists largely of accurately gauging the 

 factors of supply and accurately estimatmg the factors of demand 

 with a view of anticipating the price which will coordmate these two 

 sets of forces. For instance, if the association should ask too low a 

 price for its fruit it would not have enough to supply the demand. 

 If it should ask too high a price the entire crop would not be sold by 

 the end of the season. 



This prmciple may be illustrated further. In 1912 the following 

 questionnaire was sent to 200 retail dealers throughout the United 

 States: "Suppose the retail price of cranberries is 8^ cents per 

 quart, or 3 quarts for 25 cents. Please state what reduction in 

 your sales would result from advancing the price to 10 cents per 

 quart, 12^ cents per quart, 15 cents, and 20 cents." Ninety-two 

 replies from 20 markets located in 16 States were received. The 

 average estimated percentage of decrease of sales as price advanced 

 was as follows : 



An advance of 8| cents to 10 cents per quart reduces sales 12 per cent. 

 An advance of 10 cents to 12-| cents per quart reduces sales 23 per cent. 

 An advance of 12^ cents to 15 cents per cj^uart reduces sales 37 per cent. 

 An advance of 15 cents to 20 cents per quart reduces sales 67 per cent. 



Although the price levels of 1912 have little relationship with 

 the price levels of to-day, it is probable that proportional increases 

 in present price levels would have similar effects upon consumption. 



The economic value of the cranberry is represented by the highest 

 price (or series of prices) that will clean up the supply b}^ the end of 

 the normal selling season. It is to the advantage of the association 



