SELF-SERVING IN RETAILING FOOD PRODUCTS. 49 



goods handled. All of the mark-downs should then be added to- 

 gether and subtracted from the gross retail value of the goods han- 

 dled, the result being the net retail value of the goods handled. The 

 closing inventory should then be subtracted from the net retail value 

 of the goods handled, leaving the net retail value of the goods sold. 

 The net sales are subtracted from this latter figure, leaving the 

 " shrinkage " which represents that loss caused by evaporation, over- 

 weight, waste, net losses, if any, from cashier's errors, and petty 

 thievery. So far as can be determined, the' first four causes would 

 represent about 1 per cent of the sales in the average store, the re- 

 mainder resulting from petty thievery, 



SUMMARY OF INVESTIGATIONS. 



Self-service stores owe their existence to the fact that by eliminating 

 a large part of the salary expense as compared with ordinary service 

 stores the cost of operation can be reduced under favorable condi- 

 tions, making it possible to sell goods of a given quality at lower 

 prices. 



Where economic conditions justify the existence of a self -service 

 store, its advantages over ordinary service stores are : 



Relatively low operating expense. 

 Smaller investment in proportion to size of business. 

 Greater ease of filling employment needs. 

 Greater satisfaction to the average customer. 

 Possibility of educating customers through display. 



The disadvantages of self-service are : 



It is not applicable to all consumers but only to those willing 

 to dispense with certain service for the sake of lower prices. 



Certain goods can not be " pushed " as when salesmen are em- 

 ployed. 



The possibilities of thievery are greater, though the investiga- 

 tions of the Bureau of Markets indicate that thievery is not 

 responsible for any considerable losses. 



The important general considerations in the establishment and 

 operation of self-service stores are : 



Proper location. 



Convenient arrangement of the store and display of goods. 



Intelligent buying, grading, and pricing. 



Self-service may be satisfactorily applied to the retailing of nearly 

 all perishable farm products except fresh meats, but modifications 

 of the usual methods are necessary in the cases of some such products. 



Careful accounting is necessary in operation of a store under self- 

 service. This is true not only because of the methods of merchandis- 

 ing peculiar to self-service, but also because self-service usually 



