The Coolidge examiner., 1933-10-13
ROADSIDE
MARKETING
CHARGE FAIR PRICES
By T. J. Delohery

! WHILE consumers who patronize
| w roadside and farm markets
show most interest in freshness and
quality of the products. it is certain
that they do not expect to pay regu-
lar retail prices to the farmer. And
wise market operators realize that
they should establish prices which
give the consumer some advantage
for coming out to the roadside or
farm markets.
Charging all the traffic will bear
has proven fatal to roadside markets.
One of the best illustrations of mis-
take in charging top prices is had
in the records of two Michigan road
side markets located so rods apart.
One market. operated by a man
who bought most OF the stuff he dis
played. charged a profit of at least
so per cent. His prices were higher
than retail at the time of the In
vestigation. Low-grade pears which
cost him 80 cents a bushel, sold at
$1.25; tree-run pears available in
city stores at S1.75 a bushel were
quoted at 50. Elght-cent melons
sold at 80 cents and 81 peaches cost
him 81. The same grade was sell
ing In town for % cents less.
The other market, selling only
what the farmer raised, aimed at
% per cent profit.
Figures at the end Of the first sea-
son showed the farmer-owned mar
det did the most business-$2, ,670, to
be exact. yielded profit of 81 per
cent, or $780, The other stand took
in $1,740, and the profit was S715, or
IL per cent. Neither market made
the planned margin.
The reaction of customers was
plainly shown the following season,
when the farmer who sold his own
stuff did a business totaling 1920.
His profit was $720. His cOmpeti-
tor, charging higher prices, took in
$500, of which $295 was profit. The
third season showed similar results,
by which time the second market
closed up because of lack of Gus
toners.
Practical roadside market prices
are net wholesale-that is, whole
sale price less cost of marketing,
with sufficient margin TO cover
operating expenses and a reasonable
profit. In other words, splitting
the difference between wholesale
and retail prices will be, except In
times when the margin is very slight
due TO oversupply or some other rea-
son, sufficient to give the farmer a
decent price for what he produces.
On the other hand, know of In
stances where Ii has been neces-
sary TO sell at lower than whole
sale.
Few markets split pennies such as
retail stores do. The Idea Is to
move more goods. OF course; but l
find the extra penny which is added
when odd cents are charged and
only one quantity Is desired. has n
tendency to cause customers TO look
TO something else. Greater volume
Is now being attempted by offering
fruit. vegetable and other produce
in units OF three-that is. three
lunches of radlshes for 13 cents or
; cents each. Some customers will
buy two lunches under this scheme,
figuring the smaller fraction OF a
cent isn't so much OF difference as
the half-cent charge.
Ii has been found that little II
anything. is gained by selling below
the market or general prices. These
prices only draw bargain hunters
and they seldom become steady Gus
toners. Leaders. too. are not
good practice unless they are in
voked in case OF surplus. II is
good idea to find out what COM
petltors are charging before max
ing drastic price cuts. Otherwise
ncighbOring markets may be hurt.
and this. so | have found, brings
retaliation. On the other hand. a
knowledge of competitive prices may
help you boost your quotations or
cut them in order to keep in line.
as the case may be.
Roadside and farm market opera
tors are giving serious thought to
determining practical solution
for charging prices that meet COM
petition and at the same time bring
them the greatest profits. In one
Ohio county. the farm adviser made
daily survey of prices charged
at a number of markets. The in
formation. without disclosing the
identity of any OF the markets. was
mimeographed and distributed. The
plan resulted in a general tighten
ing of the previous quotation, some
of the farmers being able to In
crease their returns by higher
prices. and still they were in com
petition.
A more specific instance Of what
this price plan can accomplish Is the
experience Of a farmer whose retail
price for eggs didn't make many
sales. SO he cut the price two cents,
but it didn't help. Then the price
| was raised to several cents above