PROBLEMS OF COOPERATIVE MARKETING ASSOCIATIONS 37 



handicap that made the average returns less than those received for 

 apples packed " 2 1 /2-inch an d up." 



The problem before each association is to develop a system, on the 

 basis of its own conditions, which will be fair to and will protect 

 all the members. It must at the same time be so simple that it can 

 be put into operation easily and must not entail unduly complicated 

 records. 



MARKETING AGENCIES AND METHODS 



The results of efficient cooperative marketing- are good prices (tak- 

 ing into consideration market conditions), a low selling cost, and the 

 maintenance of trade connections that will serve to strengthen the 

 organization by creating a trade preference for its products. High 

 prices mean little unless expenses are reasonable, and unless a satis- 

 factory net price is returned to the producers. High prices during 

 a single season mean little if they are obtained at the sacrifice of 

 the organization's reputation for fair dealing. Inexperienced co- 

 operative associations often overlook the fact that the middlemen 

 who buy their products must make a profit if they are to remain in 

 business. And it is vital to the welfare of the cooperative organiza- 

 tions that these firms should remain in business unless the coopera- 

 tives are prepared to furnish the same service. 



One of the first requisites of successful selling, therefore, is to 

 create confidence among the car-lot buyers in the integrity of the 

 organization and the reliability of its products. This is not incon- 

 sistent with a proper regard on the part of the association for its 

 own interests and the interests of its members. As might be ex- 

 pected, it is indicated that the organizations that maintained their 

 own sales departments, or employed reliable sales agencies, were 

 more successful than those whose sales were handled by the general 

 manager, an officer or other individual. Definite data on this point 

 are lacking, however, and many other factors, such as volume of 

 business and general efficiency enter into the results. 



There are, of course, cases where a director, the general manager, 

 or some other individual, has been able to render very efficient sales 

 service. But, in general, large organizations with a volume of busi- 

 ness which commands the attention of the trade not only have an 

 increased bargaining power but also are able to hire more capable 

 men to handle their sales. 



DISTRIBUTING AGENCIES 



In marketing, distribution in its larger sense is the connecting 

 link between production and consumption. Production is local in 

 character, whereas consumption is general; production is seasonal, 

 is in bulk, and is in raw form, while consumption demands more or 

 less' refined goods, in small quantities, and in many cases without 

 relation to the producing season. It is the part of distribution to 

 perform the services that arise in delivering produced goods to the 

 consumers at the time, at the place, and in the form necessary to 

 satisfy the demands. The wide area from which large cities draw 

 supplies is indicated by Figure 5. 



There are several distinct t}^pes of distributing agencies furnishing 

 some part of the services necessary to market fruits and vegetables. 



