200 Strawberry-Grovying 



Sales f.o.b. shipping poirii. 



Recently there has been a decided increase in sales 

 f.o.b. shipping point, especially in the Delaware-Mary- 

 land peninsula, the Ozark district and throughout the 

 South. When he consigns, the grower pays all the bills, 

 whether he gets a fair price for the berries or not. 

 The railroad does not take cognizance of a low selling 

 price, neither does the conunission man, the box fac- 

 tory, the fertilizer dealer or the pickers. The plan of sell- 

 ing f.o.b. shipping point relieves the grower of the risks 

 of transportation and marketing. He seldom receives 

 as high returns from track sales as he gets occasionally on 

 consignment, but the average is better and much of the 

 worry of the business is eliminated. 



This method is practicable only at large shipping points 

 which attract buyers. The buyer may deal with the 

 individual grower, and purchase wagon loads of berries 

 as they arrive at the shipping point. A cooperative asso- 

 ciation may sell the berries of its members at public 

 auction ; this is a better way to secure their full market 

 value. If the bids are satisfactory, the grower returns 

 home with the money in his pocket ; if not, he may con- 

 sign them through the association. Shipping associa- 

 tions that have established a reputation for their pack 

 sell most of their output in car-lots f.o.b. shipping point, 

 on quotations to dealers in distant markets. The chief 

 disadvantage of f.o.b. sales is the possibility that the 

 several buyers at one shipping point may reach an under- 

 standing with each other not to pay over a certain price, 

 regardless of the quality of the berries offered or the con- 

 dition of the respective markets which the buyers repre- 

 sent. Alert growers will recognize when such an agree- 

 ment in restraint of trade has been entered into, and 



