MARKETING WESTERN BOXED APPLES 61 
The retailer’s margin shown in the preceding table represents the 
difference between the average cost to retailers and the average 
retail selling price. From this retail margin must be deducted all 
expenses chargeable to the sale of apples, such as store maintenance, 
silarics and wages of employees, credit and delivery service, and loss 
and shrinkage of fruit, before any net profit is realized by the retailer 
from the sale of these apples. 
JOBBER’S MARGIN 
Jobbing prices for the same period were collected by the Bureau of 
Agricultural Economics and the Port of New York Authority. The 
prices to jobbers used in determining the jobber’s margin were those 
collected by the market news service of the bureau. The average 
price to Bees ($2.64) was deducted from the average price to retailers 
($3.13) in order to determine the jobber’s gross margin of $0.49. 
This is also a gross margin from which must be deducted expenses 
incurred in rendering the jobbing service. The more important of 
these expenses are (1) transportation from the central wholesale 
market to jobbing centers, (2) maintenance of a place of business, 
(3) salaries and wages of employees, (4) credit service to retailers. 
WHOLESALER’S MARGIN 
The wholesaler’s margin ($0.39) was determined by deducting 
from the average price to jobbers ($2.64), the average f. 0. b. sale 
price in the producing areas plus transportation to New York Cit 
($2.25). This margin, like the others, is a price margin from whic 
considerable variation may occur in individual instances. 
From this margin must be deducted the expenses incurred by the 
wholesaler in rendering his portion of the services of distribution. 
The principal function or service of the car-lot receiver is the distriou- 
tion of less-than-carload lots to jobbers. Before the wholesaler 
realizes any profit, all expenses chargeable to the sale of apples must be 
deducted from the gross wholesale margin as follows: (1) Unloading 
cars; (2) handling at central wholesale market; (3) loading and 
hauling to jobbers’ trucks; (4) maintenance of a place of business; 
(5) salaries; (6) cold-storage expenses, if he assumes this function; 
(7) any extra transportation charges properly chargeable to the 
wholesaler (demurrage, extra diversions, storage-in-transit privilege, 
etc.); (8) loss and shrinkage in the quality or quantity of apples 
handled, etc. When these and other expenses chargeable to the 
nee apples have been deducted, the wholesaler may then realize a 
pront. 
The wholesaling function is sometimes preformed by other agencies 
than the car-lot receiver located in the central wholesale district. 
Shippers or shipping organizations oe) through their brokers or 
agents, turn over the shipments for sale by auction. In this case the 
auction fee may be less than the ordinary wholesale selling margin 
which it replaces. Under these circumstances the net return to the 
shipper would be increased by the difference between the wholesale 
margin and the auction fee, provided auction prices to jobbers and 
wholesale prices to jobbers were the same. 
