1 or No. 2, but a still more roundabout route is that of plan
No. 4. In this case, for instance, the farmer sells his vegetables to a
canning factory, where they are canned and then sold to the grocer, who
sells them in this form to the consumer. Often two wholesalers, the
second one being known as a jobber, are involved in the transaction, as
in plan No. 5. In such an event, the farmer sells to the wholesaler, who
sells to the jobber, who, in turn, sells to the grocer, from whom the
consumer secures the goods. The most complicated route is that shown in
plan No. 6. This illustrates the case of the farmer who sells his cereal
products to a manufacturer, who makes them up into breakfast foods. He
then sells them in large quantities to the wholesaler, who sells them in
50- or 100-case lots to the jobber. From the jobber they go to the
grocer, who delivers them to the consumer.
From a study of this chart, it can be readily seen that the cost of food
may be reduced if the middlemen can be eliminated. For instance, the
housewife will be able to get fruits and vegetables cheaper if she buys
them from a farmer instead of a grocer, for she will not be called on to
pay any of the grocer's overhead expense or profit.
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