GROWERS NATIONAL MARKETING AGENCY. 21 



to obtain as high a price as possible, but in obtaining this price care 

 must be exercised that future consumption is sufficiently encour- 

 aged to take care of the normal season's yield. 



With these points in mind it can be seen that the success of the 

 association depends not so much upon influencing the market as on 

 putting itself in position to gauge the factors which influence the 

 sale of its product. Thus it can be prepared to take advantage of 

 the conditions which exist. 



The only price named by the exchange is the "opening price" at 

 the beginning of the season. Market conditions set the remaining 

 quotations. Experience has proved that it is of the utmost im- 

 portance that this opening price conform closely to supply and 

 demand factors. As an illustration, in 1920 the exchange's opening 

 price was $8.50 a barrel, while private dealers were quoting $10 a 

 barrel. Much complaint came from the competing trade because 

 of the exchange's low price. Tet the manager and directors of the 

 association were convinced that market conditions would not permit 

 a retail price higher than 15 cents per quart. An exchange price 

 higher than $8.50 per barrel would not allow a 15 cent retail price. 

 The slow demand at the beginning of the season proved the wisdom 

 of not setting a higher price. Cancellation of conditional orders 

 equaled 30 per cent, when ordinarily it does not exceed 10 per cent. 

 One of the strongest markets canceled 7 out of 10 orders. Cer- 

 tainly a higher opening price would have proved disastrous by 

 discouraging consumption. That the price was not too high is 

 shown by the fact that cranberries began to advance shortly after 

 the beginning of the season and continued to increase until all berries 

 were sold. Figures 2 and 3 show that cranberry prices increased 

 during the 1920 selling season while the prices of other commodities 

 decreased at a rapid rate. 



The importance which the association places on the influence of 

 an opening price may be gained from a statement of the general mana- 

 ger of the exchange in a report to the members of one of the State 

 associations: ''I am positively convinced that the greatest, most 

 common, and most fatal of errors committed by marketing organiza- 

 tions and shippers is made in establishing their starting or opening 

 price." 



It goes without saying that naming a price which will coordinate 

 demand with the existing supply requires the exercise of sound judg- 

 ment based upon long experience in the marketing of the product in 

 question. Here, then, is another advantage inherent in sound 

 cooperative organization. Individually the growers are not able 

 to avail themselves of this talent and experience. Collectively 

 they are able to employ as efficient guidance as that with which 

 they must compete in the sale of their product. 



