34 BULLETIN 1412, U. S. DEPARTMENT OF AGRICULTURE 
between shippers and retailers would be entirely satisfactory to 
either, inasmuch as retailers usually require an extension of credit 
by those from whom they buy, whereas the shipper needs prompt re- 
turns to enable him to continue paying cash to growers. 
The consuming public demands from the retailer many types of 
service. They want the opportunity of choosing from a large va- 
riety of quality and size; they want constant fresh supplies, con- 
venience of early opening and late closing hours, store locations 
which frequently involve high rentals, delivery of purchases, ex- 
tension of credit, salesmen numerous enough to assure prompt serv- 
ice even in peak hours, etc. It appears that the size of the retailers' 
margin is determined not so much by large profits as by the high 
costs and large risks of our present highly competitive system of 
retail distribution. Usually the consumer will not accept, even at 
reduced prices, lettuce that has deteriorated materially in quality 
or condition so long as good lettuce may be had. Therefore, with 
such a perishable commodity, the retailer suffers a good deal of un- 
avoidable waste and spoilage. He frequently finds it necessary to 
recondition some of the heads by trimming off defective outer leaves 
before offering them for sale, and in order to keep up the fresh ap- 
pearance of his display, resorts to the same practice occasionally until 
sold. Some heads become a complete loss. 
To maintain these services and to assume the risks accompanying 
the retail business manifestly requires a considerable portion of the 
price paid by the consumer. So long as the buying public insists 
upon this elaborate service, retail margins will doubtless remain 
large. 
GENERAL SALES PRACTICES 9 
The different methods of selling employed by growers and ship- 
pers of lettuce may be classified as follows: (1) Direct consignment 
to commission merchants; (2) sales for cash either (a) before 
or during harvest, or (b) on track at shipping point; (3) delivered 
sales; (tt) f. o. b. usual terms sales; (5) shipment on joint account; 
and (6) auction sales. 
Definite figures are not available showing the proportion of the 
lettuce crop sold by each of these methods. 
DIRECT CONSIGNMENT TO COMMISSION MERCHANTS 
The consignment method is employed more or less in all lettuce 
sections, but is least common in those districts where the greatest 
advance has been made in standardized grading. It is also used to 
a greater extent when the market is weak than when it is active, be- 
cause during periods of low or declining prices buyers usually feel 
less security in making outright purchases; consequently even those 
shippers who disapprove of this method of handling are some- 
times forced to make use of it in order to find on outlet for all of 
their tonnage. The commission merchant, acting as agent for the 
9 For a more detailed discussion of distributing- agencies and sales practices see Outlets 
and Methods of Sale for Shippers of Fruits and Vegetables, by J. W. Fisher, Jr.. and 
J. H. Collins, Bulletin 266, and Methods of Wholesale Distribution of Fruits and Vege- 
tables on Large Markets, by J. H. Collins and J. W, Fisher, Jr., Bulletin 267, of the 
United States Department of Agriculutre, 1915. 
