The largest profits were found usually in barreled apples.  For instance, New York B grade, two inches minimum, approximately 600 apples to the barrel, sold for a cent each or $6 per barrel.  These apples cost the retail dealer not over $2 per barrel delivered to his store, allowance being made for jobber’s profit and drayage.  The investigator saw “A grade” fruit, 2-1/2 inches minimum, averaging about 400 apples per barrel, which cost the retailer not over $3, being displayed for sale at two for five cents, or $11.25 per barrel.  Such prices prevailed at no less than twenty-five retail stores visited in one day.  Apples were being offered for sale at retail all over New York City at prices ranging from one cent each at the cheap corner fruit stands, to fifty cents and eighty cents per dozen at the fanciest fruit stores.

In general, it may be said that the gross profits of fruit-stand vendors range from 100 to 250 per cent.  Operating expenses other than rent in most cities except New York are not relatively high and all sales are on a strictly cash basis; hence the net profits on good fruit are large.

Grocers catering to high-class trade buy only the best apples.  Extra fancy Jonathans, Grimes, etc., preferably 138’s and 150’s size, were purchased at $1 to $1.25 per box.  These apples were taken from the box and repacked in small splint trays similar to the peach basket used in a six-basket carrier.  Each box of apples filled approximately ten trays.  Each tray sold for thirty cents; hence the box brought $3, representing a gross profit of about $1.75.  Extra fancy Delicious and Winter Banana, 72’s size, purchased at $2 per box, retailed at five cents each, or $3.60 per box.  Other sizes and varieties brought corresponding prices.  No attempt was made by this class of grocers to stimulate consumption by temporarily reducing prices.

The retail prices quoted above were maintained consistently throughout the 1914 season, regardless of prevailing jobbing prices.  The large margins charged by the retailers, for the most part, were due apparently to the small amount of business handled, the perishable nature of the commodity, and the cost of operation.

An elaborate and efficient delivery service must be maintained by the grocers, and many small deliveries are made each day at an actual loss to the dealer.  A large proportion of the grocery-store patrons buy on credit and pay when it becomes convenient.  Many of these accounts are never paid.  Hence it becomes apparent that the good customer who pays his bill regularly each week, or who pays cash, must suffer for the shortcomings of others.  However, there can be little doubt that reducing prices would materially increase consumption and in the end result in equally good profits for the dealers.  Reduced prices and better business practice should prove to be very beneficial to grower, dealer and consumer.

The profits derived from the sale of cheaper grades of apples to the poorer class of consumers are not so large.  It was learned that those catering to such trade operated on a margin of 75 to 100 per cent. of the purchase price.