8 
BULLETIN 1411, U. S. DEPARTMENT OF AGRICULTURE 
Table 3. — Mean 'prices and percentage margins, New York metropolitan area, 
February, 192S, to May, 1924 
Commodity 
Physical unit 
Mean 
retail 
price 
Mean 
wholesale 
price 
Per- 
centage 
margin 
100 pounds 
do 
$3.87 
6.76 
8.21 
3.97 
8.00 
4.57 
4.35 
8.42 
10.76 
4.43 
7.05 
6.70 
4.68 
8.59 
$2.43 
4.18 
4.86 
2.20 
4.44 
2.45 
2.33 
4.42 
5.53 
2.16 
3.37 
3.17 
1.96 
3.22 
Per cent 
37 
38 
Box 
41 
Crate 
45 
100 pounds 
Crate 
44 
46 
Box. 
46 
100 pounds 
Barrel 
48 
49 
51 
Crate 
52 
.. do._ 
53 
100 pounds 
do ... 
58 
White onions ... . . . 
63 
14 commodity weighted mean ._ ... 
45 
In the series of articles, there is a range in the margins from a 
minimum of 37 per cent for northern potatoes to a maximum of 63 
per cent for white onions. The question at hand is to determine 
what differences exist in the marketing conditions of these commodi- 
ties which are adequate to explain so wide a divergence in the portion 
of consumers' outlays required for retail distribution of such similar 
articles. 
Some of the conditions which might reasonably be expected so to 
influence the manner of handling as to establish these commodity 
differences, are: (1) Total volume of commodity marketed through- 
out the season; (2) regularity of supply; (3) perishability; (4) vari- 
ability in price ; (5) value of total quantity marketed ; (6) comparative 
value per unit of commodity. Various detailed tests were made to 
ascertain the association of each of these conditions with the variations 
in the percentage margins. A great many tabulations were compiled 
and numerous diagrams and curves were applied to test the relation- 
ships. In no case was the relation sufficiently regular to account 
for the margin contrasts. It was therefore necessary to seek further 
for an explanation of the differences in the methods of marketing 
the different articles. 
CONTRASTS IN SERVICE REQUIREMENTS 
It was suggested that variations might exist in the extent of ser- 
vices required for distributing different commodities, which would 
suffice to explain the margin differences. Services rendered by the 
retail storekeeper may be considered as of several distinct kinds: (1) 
Assembling a considerable variety of different articles in a single place 
conveniently accessible to consumers; (2) maintaining at all times a 
fresh daily supply of articles available in the market; (3) selecting, 
grading, and arranging goods for retail sale; (4) displaying his stock of 
goods for inspection and selection by customers ; (5) breaking up the 
original packages or jobbers' units into smaller quantities required 
by the retail trade; (6) waiting upon individual customers. 
A typical display of fruits and vegetables of a Manhattan grocery 
store is shown in Figure 3. The different services maintained for 
the convenience of consumers, require on the part of the retailer 
