50 BLTLLETIX 1044, U. S. DEPARTME:N-T OF AGRICULTTTRE. 



implies operation on a xerj narrow margin of profit, and "where 

 margins are narrow under any system it is important that managers 

 be able to follow costs of operations, yolume of business, and rapidity 

 of turnoyer yery closely. 



Data, as well as general ideas as to the practicability of self-service, 

 haye been gathered from numerous self-seryice stores located in nearly 

 eyery section of the country. Some of these stores have been yery 

 successful and haye applied the principles of self-seryice to their 

 business iiitelligenth", while others are operating on almost the same 

 basis as when on the service plan, except for a mere changing of the 

 physical arrangement of the stores. Some operators who tried self- 

 service have gone back to the service plan, asserting that self-service 

 was not a success. It was usually found that in those cases the results 

 of the operation showed a lack of knowledge of the fundamentals 

 of self-service. Some failures were due to the poor location of the 

 stores, the operators believing self-service could be made a success in 

 ordinary " neighborhood " store locations. On the whole, it was 

 found that self-service in the distribution of food products is oper- 

 ating successfully wherever the principles of self-seryice have been 

 intelligentlj' applied, and that where the operations are in the hands 

 of particularly well-qualified operators the success is marked. 



Form 1. 



Opekating Statejie>:t. 



Per cent. 



Sales (net) .• 100 



Inventory at beginning 



Purchases 



Inward transportation 



Costs of goods handled— 

 Inventory at end 



Cost of Goods Sold 



Gboss Pkofit 



Management exiiense 



Rent 



Interest 



Insurance and taxes 



Heat, light, and power 



Repairs 



Depreciation 



Wages 



Advertising 



Ice and cold storage 



Wrapping 



Miscellaneous 



Total Expense 



>s'ET operating profit or LOSS- 



