RETAIL MARKETING OF MEATS 13 
for warehousing on a large scale that exists in handling less perish- 
able goods. Moreover, the purchase of meats by the small retailer 
as well as by the large dealer or the chain store is ordinarily directly 
from the slaughterer. There is not the opportunity for the elimina- 
tion of one or more middlemen by purchases on a large scale that 
the chain store finds possible in other lines. 
In the sale of meats in connection with groceries, however, there 
is an opportunity similar to the well-known practice in the grocery 
trade of using certain groceries as leaders which are sold at a margin 
that may not even pay operating expenses, whereas on other lines 
the margin is sufficient to pay operating expenses on these lines and 
a net profit for the entire business. When meats and groceries are 
sold together, the entire business may be profitable, although the 
grocery department alone may no more than meet operating ex- 
penses. Most groceries being thoroughly standardized and largely 
sold under established brands, strictly competitive prices are likely 
to be necessary, and cured meats of standard brands usually sell on 
a similar basis. 
Fresh meats, however, can not be so thoroughly standardized and 
offer an especial opportunity for providing the profit for the entire 
business because of the inability of the average customer to judge 
quality and because of the impossibility of exact determination of 
proper relationship of prices even by those more expert. Accord- 
ingly, the sale of meats: in connection with groceries offers this ad- 
vantage that may more than compensate for the disadvantage that 
the chain store experiences in the necessity of relying so largely 
upon paid employees with imperfect supervision. It is undoubtedly 
largely in consequence of this advantage that chain systems carry- 
ing meats in connection with groceries develop into larger systems 
than those selling meats alone. There are instances of small combi- 
nation stores carrying meats on a narrow margin, largely as an ac- 
commodation to their grocery trade, but in concerns with dealings 
on a larger scale the wider margin is regularly on fresh meats. 
In general, in the relationship of the fresh-meat trade to the 
grocery trade in chain-store systems, the three types are more or less 
clearly defined. In the sale of standardized goods a clear oppor- 
tunity exists for merchandising on a large scale, particularly when 
limited to sales over the counter without such additional services as 
credit or delive^. So great are the advantages of these large-scale 
operations that such systems are steadily increasing in size, and indi- 
vidually owned concerns are finding it desirable to unite in associa- 
tions for joint purchasing and joint advertising. In the straight 
meat trade the necessity of close supervision by the owner ordinarily 
limits the number of stores in each system to 20 or less. In the 
intermediate class of chain systems of combination stores, it is un- 
doubtedly the advantage of larger profit per unit that is the con- 
trolling factor in causing the inclusion of meats. Chain systems that 
do develop considerable numbers of stores selling fresh meats, either 
alone or in connection Avith groceries, accomplish the result either 
through closer supervision than is required for systems dealing in 
standardized products only or through a form of organization that 
gives the branch manager a percentage of profits or makes him in 
some respects virtually an independent dealer. 
