6 BULLETIN 302, U. S. DEPARTMENT OF AGRICULTURE. 



The largest profits were found usually in barreled apples. For 

 instance, New York B grade, 2 inches minimum, approximately 600 

 apples to the barrel, sold for a cent each or $6 per barrel. These 

 apples cost the retail dealer not over $2 per barrel delivered to his 

 store, allowance being made for jobber's profit and drayage. The 

 investigator saw "A grade" fruit, 2\ inches minimum, averaging 

 about 400 apples per barrel, which cost the retailer not over S3, being 

 displayed for sale at 2 for 5 cents, or $11.25 per barrel. Such prices 

 prevailed at no less than 25 retail stores visited in one day. Apples 

 were being offered for sale at retail all over New York City at prices 

 ranging from 1 cent each at the cheap corner fruit stands, to 50 

 cents and 80 cents per dozen at the fanciest fruit stores. 



In general, it may be said that the gross profits of fruit-stand 

 vendors range from 100 to 250 per cent. Operating expenses other 

 than rent in most cities except New York are not relatively high 

 and all sales are on a strictly cash basis; hence the net profits on 

 good fruit are large. 



Grocers catering to high-class trade buy only the best apples. 

 Extra fancy Jonathans, Grimes, etc., preferably 138's and 150's 

 size, were purchased at $1 to $1.25 per box. These apples were 

 taken from the box and repacked in small splint trays similar to 

 the peach basket used in a six-basket carrier. Each box of apples 

 filled approximately 10 trays. Each tray sold for 30 cents; hence the 

 box brought $3, representing a gross profit of about $1.75. Extra 

 fancy Delicious and Winter Banana, 72's size, purchased at $2 per 

 box, retailed at 5 cents each, or $3.60 per box. Other sizes and 

 varieties brought corresponding prices. No attempt was made by 

 this class of grocers to stimulate consumption by temporarily reducing 

 prices. 



The retail prices quoted above were maintained consistently 

 throughout the 1914 season, regardless of prevailing jobbing prices. 

 The large margins charged by the retailers, for the most part, were 

 due apparently to the small amount of business handled, the perish- 

 able nature of the commodity, and the cost of operation. 



An elaborate and efficient delivery service must be maintained by 

 the grocers, and many small deliveries are made each day at an actual 

 loss to the dealer. A large proportion of the grocery-store patrons 

 buy on credit and pay when it becomes convenient. Many of these 

 accounts are never paid. Hence it becomes apparent that the good 

 customer who pays his bill regularly each week, or who pays cash, 

 must suffer for the shortcomings of others. However, there can be 

 little doubt that reducing prices would materially increase con- 

 sumption and in the end result in equally good profits for the retailer. 

 Reduced prices and better business practice should prove to be very 

 beneficial to grower, dealer, and consumer. 



