28 
BTJLLETIX 1411, TJ. S. DEPARTMENT OF AGRICULTURE 
GENERAL CONCLUSIONS 
This study brings to light three features of metropolitan distribu- 
tion which are of outstanding significance in determining the expense 
of distributing perishable foods to city consumers. 
The first is the fact that the expense of city distribution is influ- 
enced to a remarkable extent by the purchasing habits of consumers. 
The prevailing size of the individual retail sale has great influence 
in determining the proportion of the consumer's expenditure which 
is absorbed in the distribution process. The price spread necessary 
to cover the services involved in bringing supplies from the city 
wholesale market to metropolitan consumers is found to be fairly 
SPLIT-UP OF CONSUMER'S OUTLAY* IN VARIOUS TYPES OF STORES. 
( PER STANDARD RETAIL SALE ) 
SEVEN LEADING FRUITS AND VEGETABLES, (WEIGHTED AVERAGES) 
NEW YORK METROPOLITAN DISTRICT, 1923-1924 
CHAIN STORES 
TOTAL 
CONSUMER'S 
OUTLAY 
CENTS 
20.8 
UNIT CASH -CARRY 
STORES 
UNIT CASH 
DELIVERY STORES 
UNIT CREDIT 
DELIVERY STORES 
23.8 
2^.8 
26.8 
GOODS 
I Who/eso/e cost of Goods 
14- Cents 
Adjusted for differences in wholesale prices 
Fig. 11. — The consumer's outlay per standard sale in different types of stores is apportioned thus: 
Cost of goods in the wholesale market, 14 cents; total services in chain stores, 6.8 cents; retailers' 
service in unit stores, 7.8 cents, with 2 cents additional for jobbers' service. Delivery service 
adds 1 cent and credit 2 cents more to the consumer's outlay 
constant per individual retail sale, irrespective of the physical size 
of sale. 
Selling prices seem to be fixed by retailers at such a point above 
cost of goods in the wholesale market as will yield a fairly uniform 
money return per sale, to cover the expense of service which is ren- 
dered. The extent of service involved in distributing a given quan- 
tity of goods thus fixes the proportion which the retailer must charge 
above cost to cover his operating expenses. The larger the con- 
sumer's purchase the smaller is the proportion of the outlay which is 
absorbed by distribution charges and the greater is the proportion 
left to pay for merchandise. 
All services involved in city distribution have to be paid for out 
of the price charged by the retailer for the individual sale. Since 
every sale is a profit-making opportunity, the retailer must so appor- 
