April, ’24] 
SAFRO: PRICE OF INSECTICIDES 
243 
the control of pests and yet is the most economical and at times the only 
method that can be adopted. 
The warning undertying this thought is not to discard the inferior 
method of control without full consideration of all economic factors 
that may be concerned. 
Assuming that the new insecticide seems to have an advantage in 
price over the old, what are some of the factors that must be considered 
in order to obtain an idea of its comparative advantage in price to the 
consumer and to save the investigator from making economic claims 
that, may not materialize. 
To begin with, someone must financially sponsor the new material. 
No matter how simple it seems or how evidently successful it may soon 
become, someone must risk his money in the venture. It may at this 
point not be out of place to mention that notwithstanding the greater 
development of the insecticide industry in recent years, after all it is a 
small industry compared to those world industries that the general 
public comes into contact with every day. The insecticide industry is 
difficult for capital to understand and with capital’s well known timidity, 
it may be mentioned that it is not particularly anxious to rush into the 
insecticide business, especially when it is understood that, with only a 
few exceptions, the industry has not been a particularly profitable one. 
The mistake must not be made of thinking that the funds, equipment 
and energy of manufacturers already in operation constitute capital 
any the less for that reason. 
Granting that funds have been obtained with which the new develop¬ 
ment can be undertaken. There is a charge, then, against the new 
insecticide as a return to capital for its use. This is not to be confused 
with the manufacturing profit that is expected in the conduct of a 
manufacturing plant. The return to capital for its use must be greater 
than normal interest returns. There is considerable risk and uncertain¬ 
ty in all business ventures, and the insecticide industry has been no 
exception to past experience that 95% of all business ventures fail. 
li ence, capital has a full right to expect return in proportion to the risk 
involved. 
Having obtained financial backing, it is necessary to figure on expense of 
equipment and installation, on the cost of production , being careful to 
allow sufficient margin to make up for the under-estimates that practically 
always occur in such cases, as well as for usual wastages, and for overages 
in quantities and analyses necessary in fully complying with the laws. 
If is, of course, assumed that the production of the new material will 
