I20 



THE MARKETING OF WHOLE MILK 



Table XX 

 A Columbus, Ohio, Dealer's Margins 



Price 



per qt., 

 cents 



13 

 14 

 II 

 12 



How sold 



By quart retail delivered . 

 By' pint retail delivered . . 



By quart wholesale 



By pint wholesale 



Per cent of milk 

 sales in each class 



18. s 



iS-5 

 36.0 

 30.0 



Amount contributed 



to the price of an 



average qt. by each 



class 



?. 02405 

 .02170 

 .03960 

 .03600 



Weighted average price received $. 12135 



Cost per quart 075 



True spread or margin $.04635 



Commonly spoken of as spread {$. 13-^.075) 055 



The spreads of different dealers vary widely. Although 

 they may be indicative of differences in costs, they are by 

 no means conclusive. One of the instances of differences 

 upon which there has been a great deal of comment is that 

 between the spreads of Philadelphia and of New York. 

 Philadelphia has the lower margin and also the lower re- 

 tail price. In 1913 the average price in Philadelphia was 

 8 cents, in New York 9 cents a quart. For 191 9 the aver- 

 ages were 13.6 cents and 16.1 cents respectively, a differ- 

 ence of lyi cents as compared with a difference of i cent 

 when the price was lower. The retail pride in Philadelphia 

 had increased 70 per cent, in New York 79 per cent. The 

 fact that these ratios have practically been maintained 

 over a period of years in spite of the fierce competition in 

 both places indicates that there are probably fundamental 

 reasons for such differences. 



"Unquestionably the net profits realized by the leading 

 milk marketing concerns, on the basis of both capital in- 



