Highways and Highway TransportationChatburn, George R.
History
Highways and Highway Transportation
Chatburn, George R.
Roads; Transportation
=Coöperative Marketing.=--Coöperative marketing associations and the
intermediate dealer, that is a man who buys directly from the producer
and resells to other purchasers, are said to have two points of
superiority over the commission merchant: (_a_) The care and solicitude
of the owner replaces the zeal of the agent; (_b_) by combining the
products of many they are able to handle large quantities and thus
secure better shipping rates, and take advantage of other benefits
of quantity business. The farmer or local dealer, or coöperative
association, ships to the commission merchant only in carload lots.
The freight charge, nowadays, no matter what the custom may have been
in the past, is the same whether one or a dozen cars are shipped at a
time. There may be some favoritism in the securing of cars when asked
for by the large shipper. The inspection charges are fixed by law. The
commission merchant’s fee is a percentage of the sale and thoroughly
regulated by custom and the rules of the grain exchange. The commission
merchant being acquainted with buyers can usually place all grain the
day it is received, so the advantage, if any, of an intermediate dealer
are more in name than in reality.
With the idea of eliminating some of the cost of marketing coöperative
associations have sprung up over the whole country. While there are
many advantages of coöperation, such as by pooling interests, larger
quantities can be handled in one bulk, thus getting any advantage that
might come in freight rates. Also where large quantities are collected
it is practically always possible to take care of buyers; or, the
agency may know where to find buyers when an individual would not. The
buyer for overseas exports wants to get his grain in as large lots
as possible to reduce handling charges. The association usually has
facilities to examine and separate the grain or other commodities into
the several grades, and the buyer can rely on the grade being as stated
by the seller. In the case of some perishable goods, such as fruit, the
association advertises freely, spreading the cost over many raisers,
and creating a desire on the part of consumers for the association’s
named brand of fruit. “Sunkist” lemons and oranges and “Sun Maid”
raisins are household words due to extensive advertising by their
respective coöperative associations. Coöperative associations purchase
from non-members and profits on these purchases go to the association
and in due time are distributed to its members. The California Fruit
Growers’ Exchange advertises itself as “A non-profit coöperative
organization of 10,500 growers.” The object of all such associations is
two-fold: (1) To decrease the cost and trouble of marketing, and (2) to
increase the common desire for their products. Both of which will tend
to increase the grower’s profits.
Public-domain text, read in full here on John Shaqi.
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