GRO WEES' NATIONAL MARKETING AGENCY. 21 
to obtain as high a price as possible, but in obtaining this price care 
must be exercised that future consumption is sufficiently encour- 
aged to take care of the normal season's yield. 
With these points in mind it can be seen that the success of the 
association depends not so much upon influencing the market as on 
putting itself in position to gauge the factors which influence the 
sale of its product. Thus it can be prepared to take advantage of 
the conditions which exist. 
The only price named by the exchange is the ''opening price" at 
the beginning of the season. Market conditions set the remaining 
quotations. Experience has proved that it is of the utmost im- 
portance that this opening price conform closely to supply and 
demand factors. As an illustration, in 1920 the exchange's opening 
price was 88.50 a barrel, while private dealers were quoting $10 a 
barrel. Much complaint came from the competing trade because 
of the exchange's low price. Yet the manager and directors of the 
association were convinced that market conditions would not permit 
a retail price higher than 15 cents per quart. An exchange price 
higher than SS.50 per barrel would not allow a 15 cent retail price. 
The slow demand at the beginning of the season proved the wisdom 
of not setting a higher price. Cancellation of conditional orders 
equaled 30 per cent, when ordinarily it does not exceed 10 per cent. 
One of the strongest markets canceled 7 out of 10 orders. Cer- 
tainly a higher opening price would have proved disastrous by 
discouraging consumption. That the price was not too high is 
shown by the fact that cranberries began to advance shortly after 
the beginning of the season and continued to increase until all berries 
were sold. Figures 2 and 3 show that cranberry prices increased 
during the 1920 selling season while the prices of other commodities 
decreased at a rapid rate. 
The importance which the association places on the influence of 
an opening price may be gained from a statement of the general mana- 
ger of the exchange in a report to the members of one of the State 
associations: "I am positively convinced that the greatest, most 
common, and most fatal of errors committed by marketing organiza- 
tions and shippers is made in establishing their starting or opening 
price." 
It goes without saying that naming a price which will coordinate 
demand with the existing supply requires the exercise of sound judg- 
ment based upon long experience in the marketing of the product in 
question. Here, then, is another advantage inherent in sound 
cooperative organization. Individually the growers are not able 
to avail themselves of this talent and experience. Collectively 
they are able to employ as efficient guidance as that with which 
they must compete in the sale of their product. 
