RETAIL MARKETING OF MEATS 
61 
group — buying and management expense — particularly that can not 
be segregated from others in the smaller concerns. However, buying 
on a small scale involves more time per unit of purchase than buying 
on a large scale, and the percentage relation of this group of sales 
would undoubtedly be larger in small concerns if the segregation 
could be made. It seems evident that the percentage relationship of 
each of the groups — buying and management expense, selling ex- 
pense, delivery expense, and general expense — to sales is higher in 
smaller than in larger concerns. 
Table 32. — Analysis of operating expenses of large concerns, by groups of items, 
1919 
Individual markets 
Chain systems 
Carry 
stores 
Delivery stores 
7 carry 
systems, 
meats 
only (120 
stores) 
5 carry 
systems, 
meat 
opera- 
tions in 
combi- 
nation 
stores 
(119 
stores) 
3 delivery 
systems, 
meats 
only (27 
stores) 
Sales over 
$100,000 
(12 stores) 
Sales 
between 
$100,001 
and 
$200,000 
(25 stores) 
Sales over 
$200,000 
(12 stores) 
Net sales. . . . _ 
Per cent 
100.00 
83.15 
Per cent 
100. 00 
82.03 
Per cent 
100.00 
82.70 
Per cent 
100.00 
82.63 
Per cent 
100.00 
79.56 
Per cent 
100.00 
Cost of merchandise sold 
80.07 
Gross margin 
16.85 
17.97 
17.30 
17.37 
20.44 
19.93 
Wages of sales force 
6.18 
.49 
.80 
.12 
6.27 
.28 
.87 
.16 
5.52 
.32 
.95 
.35 
6.53 
.53 
.98 
.10 
7.99 
.32 
.76 
.20 
7.04 
.16 
Wrappings. .. 
.72 
Other selling expense . 
.15 
Total selling expense 
7.59 
7.58 
7.14 
8.14 
9.27 
8.07 
Wages of delivery force .. . 
.89 
1.23 
.78 
1.05 
.60 
Other delivery expense 
1.18 
Total delivery expense . . . ... 
2.12 
1.83 
1.78 
Buying, management, office salaries 
Office supplies and expense.. 
2.76 
.06 
1.91 
.07 
1.78 
.17 
1.56 
.07 
1.48 
.08 
2.57 
.06 
Total buying and management ex- 
2.82 
1.98 
1.95 
1.63 
1.56 
2.63 
Refrigeration. . . . 
.44 
.26 
.10 
1.63 
.38 
.44 
.26 
.16 
.06 
.08 
.55 
.58 
.28 
.13 
1.25 
.40 
.24 
.19 
.10 
.05 
.24 
.29 
.30 
.30 
.10 
.89 
.35 
.24 
.13 
.13 
.04 
.26 
.58 
.57 
.19 
.14 
1.28 
.40 
.33 
.28 
.12 
.08 
.04 
1.20 
.80 
.23 
.19 
1.27 
.52 
.61 
.20 
.21 
.11 
.07 
.74 
.91 
Heat, light, and power... ..... ... 
.36 
.11 
Rent 
1.60 
Interest ... ... .. . ... 
.35 
Depreciation. 
.21 
Repairs . . 
.26 
Insurance. . . . ... . . ... 
.16 
Taxes 
.01 
Losses from bad debts . . 
.32 
Other general expense 
.54 
Total general expense .. . 
4.36 
3.75 
3.32 
4.63 
4.95 
4.83 
Total expense . 
14.77 
2.08 
15.43 
2.54 
14. 24 1 14. 40 
3. 06 2. 97 
15.78 
4.66 
17.31 
Net profit 
2.62 
OPERATING EXPENSES, GROSS MARGIN, AND NET PROFIT 
EXPENSES AND PROFITS OF ALL STORES COMBINED 
In the combined weighted average of concerns representative of 
the typical retail business, including the 206 individual meat markets 
and 15 chain-store systems catering primarily to family trade, the 
