60 BULLETIN 1415, U. S. DEPARTMENT OF AGRICULTURE 
COST OF MARKETING 
An analysis of the retail price for Extra Fancy and Fancy grades 
of northwestern boxed apples, sold in certain individually owned 
grocery stores in the New York port district, indicates the following 
approximate margins and charges: 
Percent- 
Distrib- 
Item uted cost | 28¢ of re- 
per box tail price 
r box 
Margin received by: Per cent 
PSY FEY 1 (2) peaneer ar dss opp CRAR SMe. Sin eS ea Rye RT TL die oe SI Ne AE A ee ee $1. 87 37.4 
Jobber eo Ss ee tale ER Aa Ree ee ae ane re ee ae . 49 9.8 
Wholesalers: 20 '5. i=: lipealet 4 Sees te ee ed) BE ie eee en eee 39 7.8 
Shippin Organizavione 2 ae ee ee ee ee gn ee ee are ee Sete : 5.4 
Transportation Charges. 5. fe Cire See ee ee Eee ee eee Dey Pee a . 80 16.0 
Grower’s portion: per bOXs:. 52-2. A ee ee a ee eee 1.18 23. 6 
Retail price per box--_-__-- pa os Soak Cm eae oA gee aly iy ee os Be Ae le 5. 00 100. 0 
Because of the many possible channels which may be used in the 
distribution of northwestern apples, some discussion of these margins 
and charges is necessary. In this analysis, certain assumptions 
must first be made because of these various possible channels of 
distribution. It was therefore assumed (1) that the apples sold 
were equal quantities of Extra Fancy and Fancy Winesaps, sizes 
72 to 163, inclusive; (2) that the apples were sold by grower organiza- 
tions f. o. b. either Wenatchee or Yakima district, Wash.; (3) that 
purchase was made by car-lot receivers (wholesalers) in New York 
City; (4) that distribution to retailers was made through jobbers in 
five important jobbing centers of the New York port district who 
purchased apples from wholesalers in the central wholesale market; 
and (5) that retail distribution was through retailers operating indi- 
vidually owned grocery stores. 
Within the limitations established by these assumptions, which 
are based on information collected by the United States Department 
of Agriculture, the margins or divisions of the retail price show the 
approximate distribution of the price paid by the consumer for apples 
sold through these stores. Any other necessary limitations or 
assumptions will be discussed under the individual margins and 
charges. 
RETAILER’S MARGIN 
The length of time covered in the collection of retail prices for 
this study is the period between February 2 and May 11, 1923. 
During this period, retail prices for Extra Fancy and Fancy grades 
of Winesap apples, sizes 72 to 163, inclusive, were collected by the 
Bureau of Agricultural Economics, United States Department of 
Agriculture, and by the port authority from a number of individually 
owned grocery stores in the New York port district. The period 
for fhe retail prices were collected covered the year’s retail business 
for this variety of apples which did not appear in these stores before 
January 15 nor after May 15. These stores are of the type extending 
credit and delivery service to their customers. 
Examination of the prices indicated that $5 per box was a repre- 
sentative retail selling price for apples of these grades and sizes. 
