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FOR GROWERS AND DEALERS IN NURSERY STOCK 
The National Nurseryman Publishing Co., Incorporated. 
Vol. XXI. ROCHESTER, N. Y., JANUARY, 1913 No. i 
SELLING PRICE 
By George W. Ottinger 
One of the most important factors in business is selling price. It represents 
to consumer the class of merchandise we handle, whether cheap, moderate or 
high priced, and to the owner it represents that in which is included his profits. 
Selling price is made up as follows: Cost of product, plus cost of selling, plus 
cost of handling, plus overhead charges, plus profit. Each of these items of cost 
is necessary to figure a proper selling price. An especial advantage in any one 
item or all items of cost over our competitors gives an additional profit or an 
opportunity for a reduced selling price. 
Cost of product is essential inasmuch as it is a basic factor and one in which 
there is considerable fluctuation, especially in producing different varieties in differ¬ 
ent locations and by different methods. The more thoroughly the cost is deter¬ 
mined there will be a tendency to produce better merchandise and in a more scien¬ 
tific and needless to say economical way. 
The selling cost, that is advertising, soliciting or other method of offering your 
goods for sale, is quite frequently a drag on a business because a careful examina¬ 
tion is not made to find what it costs to sell a dollar^s worth of merchandise, or 
in other words, whether the particular kind of advertising and its distribution, or 
the particular kind of soliciting and the sections solicited are the best considering 
the class of product we are endeavoring to market. 
Cost of handling, that is digging, packing, hauling, delivering, etc., is an item 
that needs close watch as herein can much be spent or much be saved inasmuch 
as we have efficient facilities for quick work. 
Overhead charges, here is another item frequently overlooked in the making 
of a selling price. This includes office expense, exclusive of selling expense, rent, 
heat, light, interest, discount and the thousand and one unclassified expenses, small 
in the individual items, but large in the aggregate ; and frequently these are the 
menace of the profits. 
Profit, what should it represent, the owner’s salary after all expenses are de¬ 
ducted? No; the business should pay the owner a commensurate salary, which is 
chargeable against production, selling, handling and overhead. 
