Census of business: 1935. Voluntary group and cooperative wholesalers, groceries and related products

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Given By
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CMSUS OF BUSINESS: 1935

VOLUNTARY GROUP AND COOPERATIVE 'iVHOLESALERS
GROCERIES Ai:]D RELATED PRODUCTS

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UNITED STATES DEPARTMENT OF COMMERCE
Daniel C. Roper, Secretary

BUREAU OF THE CENSUS
William Lane Austin, Director

CENSUS OF BUSINESS: 1935

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS
GROCERIES AND RELATED PRODUCTS

H

41

UNITED STATES DEPARTMENT OF COMMERCE
Daniel C. Roper. Secretary

jj^^ BUREAU OF THE CENSUS

y. ill Jam Lane Austin, Direccor

CENSUS OF BUSINESS-. 1935
Fred A. Gosnell. Chief Statistician
William A. Ruff, Assistant

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS
GROCERIES AND RELATED PRODUCTS

Prepared by
John Albright, Chief, Wholesale Distribution

The Census of Business was made possible through an allocation of
funds to the Bureau of the Census by the Works Progress Administration.

644

(^'b vx . ^ V -2."^ A u ^

C 0 N T E N T S

MAP AND CHARTS

Page
Map of the United States — Business of voluntary group and

cooperative wholesalers, by states 4

Chart I - Sales of voluntary-group wholesalers by geographic

divisions 17

Chart II - Sales of cooperatives by geographic divisions 17

TEXT

Introduction 5

Scope of this study 6

"Voluntary" and "cooperative" defined 6

Grocery trade only 7

Identification of cooperatives and voluntaries 7

General summary of cooperatives and voluntaries 9

Cooperatives and voluntaries compared with other grocery whole-
salers 12

Geographic distribution of cooperatives and voluntaries 14

Degree of cooperation 18

Voluntaries 18

Cooperatives 19

Credit sales 19

Operating expenses ., , .,..,...._, 21

Frequency distribution of Operaitinig expenses • — '■ cooperatives 21

Business-size groups ,,,.,..^..,,,.......^....._. 22

Voluntaries :l::l..: :}.:■..' 22

Cooperatives y.., -....>>...,..,......,. .-..,,,..._...■....•...;:... .>.._. 23

Expenses analyzed v;.^^.;..•..C»V*•'^•■■'■^■v^•'£•■■S■■i•'.J.•'. 25

Voluntaries 25

Cooperatives 26

Employment and pay roll 27

Voluntaries 27

Cooperatives 28

Employees by business-size groups — voluntaries 30

Commodity sales 33

644

Si

4j

CONTENTS (Continued)

• TABLES

Page

Table 1. — Summary of establishments, sales, expenses,

employment, pay roll and stocks 11

Table 2. — Comparative study of sales, expenses, personnel,

pay roll and stocks 13

Table 3. — Geographic distribution of cooperative and

voluntary-group wholesalers 16

Table 4. — Voluntary-group wholesalers classified according

to percentage of 1935 sales to cooperating

retailers 19

Table 5. — Credit sales 21

Table 6. — Frequency distribution of operating expense ratios -

Retailer-cooperative warehouses 22

Table 7. — Sales, expenses, personnel, pay roll, and stocks

by business-size groups 24

Table 8. — Analysis of operating expenses by business-size

groups - Voluntary-group wholesalers 26

Table 9. — Employment and pay roll for week ending October 26, ■

1935, by occupational groups 29

Table 10. — Full-time employees and their pay roll by

occupational classes and size of establishment 31

Table 11. — Commodity sales 35

644

, Ut bO^>''

U. S. SUPF-W<^TEM*^"'

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VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS
GROCERIES AND RELATED PRODUCTS

By John Albright, Chief, Wholesale Distribution

INTRODUCTION

This IS one of a series of special reports on Wholesale Distri-
bution, a part of the Census of Business, 1935. The statistics were
collected in 1936 by a field canvass of wholesale establishments in every
state, city and county in the United States. They cover the operations
of wholesalers during the year 1935.

The field canvass was based upon wholesale establishments which
are defined, for census purposes, as recognizable places of business
where goods are sold in a wholesale manner. Selling in a wholesale manner
or on a wholesale basis is selling primarily to retailers, institutions
buying in quantities, industrial users and to other wholesale organizations
for resale or further processing or business use, rather than for personal
or household consumption. No establishments are included in the Wholesale
Census unless 50 percent or more of their sales are made at wholesale .
The census was taken on an establishment basis in order to facilitate the
canvass and to make it possible to present the data by geographic areas.
A separate report was secured for each place of business, regardless
of whether or not it was owned or operated as a part of a larger business
organization.

6. CENSUS OF BUSINESS: 1935

SCOPE OF THIS STUDY

Many independent traders, particularly in the grocery and drug
trades, in order to obtain some of the advantages of centralized ownership
or control, have in recent years, organized cooperatively into voluntary
groups. Some of the major objectives of such cooperation have been to pool
buying power, advertise collectively, and to obtain other benefits of group
merchandising. In the 1935 Census of Business the Bureau attempted, for the
first time, to measure by means of a field canvass the extent of this evolu-
ion in wholesaling. Specifically, each wholesaler was asked, "Is this es-
ablishment operated by, operating, or sponsoring a cooperative or voluntary
group of retailers?" Where the answer was in the affirmative, the name of
the group, the date that the particular establishment became a member and the
percentage of the 1935 sales to retail members of the group were called for,
in addition to the regular Census of Business inquiries.
"Voluntary" and "Cooperative" Defined.

In order to provide a better understanding, of group merchandising
of this type, census enumerators were instructed to distinguish between the
wholesaler-sponsored group and the retailer-owned or operated warehouse —
informal buying groups without recognizable places of business were not in-
cluded in the canvass. The wholesaler-sponsored or affiliated .group was
described, for enumeration purposes, as one in which the wholesaler took
the initiative in seeking to bring about a more effective combination of
wholesale and retail functions through merchandising affiliations with a
selected group of retailers, while a retailer-owned or operated warehouse
was described as an establishment functioning as an incorporated wholesale
company selling only to members, or as a regular wholesale business, the

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 7-,

ownership and control of which was entirely or largely in the hands of the
retailers. The wholesaler-sponsored type where the control rested largely
with the wholesaler is hereinafter referred to as a "voluntary-group whole-
saler" or as a "voluntary", while the retailer-owned wholesaler, where the
policy is determined by the retail members, is called a "retailer-
cooperative warehouse" or merely "cooperative".

Cooperatives without warehousing facilities and voluntaries which
did not report a common name by which retail members were identified are
omitted from this study.

Grocery Trade Only

An examination of the replies to the inquiries outlined above
revealed that there was considerable confusion in some trades as to what
constituted a voluntary or cooperative group. In the petroleum trade, for
example, a number of operators of commission bulk tank stations, stations
owned by major oil companies but operated by lessees on a commission basis
selling to exclusive dealers, considered theirs as a voluntary business.
Likewise, many distributors operating under an exclusive agency or other _
contractual basis insisted that they sponsored voluntary groups. Due to the
irregularities of reporting in some kinds of business and to the small number
of such operators in other trades, this study is limited to cooperative and . _.
voluntary wholesalers in the grocery trade, the trade where their operations
are fairly well defined.

Identification of Cooperatives and Voluntaries

The data given in this report for voluntaries and cooperatives do
not agree with those shown in the general reports on Wholesale Distribution
lor the year 1935. For the purposes of this report all schedules showing any
644

8. CENSUS OF BUSINESS: 1935

evidence of group affiliation were reexamined carefully and where doubt
existed as to the character of their operations, correspondence was
initiated with the respondent. Also, concerns wnich failed to indicate
group affiliation on their reports, but which were listed as voluntaries
or cooperatives by agencies familiar with this type of merchandising, were-
ontacted for further information. As a result of the additional facts
developed from this correspondence, a number of establishments have been
included in this report which were classified as other than voluntaries
or cooperatives in Wholesale Distribution, 1935, Volumes I to VIII, • - ■ - - -
inclusive.

While the characteristics of a typical cooperative or voluntary
group are objective and easily ascertainable, many groups do not conform ■-'-•'>- :
closely to the usual conception. Methods of operation differ materially i-i-,-^^
and the degree of cooperation ranges from mere group name to 100 percent _ -
group merchandising. The brief amount of information solicited on the
Census report and in the follow-up correspondence made it difficult to _
classify properly some establishments, particularly the border line cases.
Lack of uniformity in the use of terms also added to the problems of proper-
ly identifying reports to be included and those to be excluded from this -
study. Due to the rigid selection to which the schedules were subjected
and to the fact that some wholesalers may have misinterpreted the
questions, it is quite possible that some reports may have been erroneously
rejected through lack of proper information. It is felt, however, that the
figures contained herein are reasonably complete for the year 1935.
644 ... . ,

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 9.

GENERAL SUMMARY

There were 157 cooperative warehouses and 584 voluntary-group
wholesale establishments in the grocery trade at the close of 1935. This
count of establishments does not include buying groups or other such
operators without recognizable places of business but, for wholesale chain
organizations sponsoring voluntary groups, each branch or establishment engaged
in group merchandising is counted separately.

3/4 Billion Dollar Business .

Net sales of the 157 cooperatives amounted to $144,054,000 for
the year 1935, while the 584 sponsoring establishments reported sales of
$578,019,000. Thus, the combined total business for both types amounted to
$722,073,000. The term, "net sales", as used by the census, represents,
gross sales less returns and allowances. It includes sales taxes, if any,
and receipts obtained from services and other sources in the normal oper-
ation of the business.

Operating expenses of the cooperatives for the year 1935 amounted
to $7,475,000 or 5.2 percent of sales. Of this total, $4,239,000 or 57
percent was in the form of pay roll. Sponsoring establishments incurred
expenses of $58,357,000 or 10.1 percent of sales; $35,775,000 or 61 per-
cent of which was in the form of pay roll. Pay roll for cooperatives
equalled 2.9 percent of sales as compared with 6.2 percent for sponsoring
wholesalers.

The cooperatives engaged 2,821 paid employees, while the
personnel of the voluntaries consisted of 21,584 paid employees (monthly)

10. CENSUS OF BUSINESS: 1935

average) and 144 active proprietors and firm members of unincorporated
business for whom no compensation is included in pay roll. Average
annual sales per employee for cooperatives amounted to $51,065 as compared
with $26,656 per person engaged by sponsoring wholesalers. Merchandise
on hand for resale, cost value, at the -end of 1935 amounted to $14,176,000
or 9.8 percent of sales for cooperatives as compared with $76,962,000 or

13.3 percent of sales for voluntaries. ... _

From the summary comparison, it is apparent that operating costs

per dollar sales are much higher for voluntary group than for retailer-
owned wholesalers. As is shown later in this report, the higher costs for
voluntaries resulted primarily from added services rendered by them. They,
as a rule, have a more liberal credit policy than cooperatives both in
terms of amount of credit and from the standpoint of length of credit
period. More of them provide delivery services for their retail members.
They carry larger stocks including a variety of items, some. of which are
slow moving. Also, voluntaries employ a larger personnel for an equal
volume of sales and rely more en the services of salesmen, usually high
salaried employees; hence, they have a higher ratio of pay roll to sales.

Although the higher expenses for voluntaries reflect added
services rendered, they also result in part from bookkeeping methods. It
was found that many voluntaries treat, for accounting purposes, advertising
and sales promotion expenses as a part of their costs even though advertising
allowances by. manufacturers .aad contributions by retail .members are often
made for these aids. . : . ,

644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

11,

TABLE 1.— SUMMARY OF ESTABLISHMENTS, SALES, EXPENSES,
EMPLOYMENT, PAY ROLL AND STOCKS

Retailer-
cooperative
warehouses

Voluntary-
group
wholesalers

Number of establishments

Net sales

Operating expenses (including pay roll) 1/
Amount
Percent to sales

Number of active proprietors and firm members

Employees (full-time and part-time) Average for year

Pay roll

Amount

Percent to sales

Stocks on hand, end of year
Amount
Percent to sales 2/

157 584

1144,054,000 $578,019,000

$7,475,000 $58,357,000
5.2 10.1

144

2,821

21,684

$4,239,000

$35,775,000

2.9

6.2

114,176,000

$76,962,000

9.8

13.3

1/ The term operating expenses is used in this report to cover total pay roll
and all other costs, including book charges, incurred in the operation of the
business, such as administrative, selling, delivery, warehouse, occupancy
(rent; maintenance labor; heat, light, power and water; building repairs and
supplies; insurance, taxes and depreciation on building; etc.) and "other"
expenses. The amount does not include charges to capital accounts, cost of
goods sold, income taxes, nor any allowance for net profit. In the case of
unincorporated businesses, no compensation is included for the services of
proprietors and firm members.

2/ Throughout the study this percentage is obtained by dividing the value of
stocks on hand, at cost, at the end cf the year by net sales for the year.
It should not be considered as a stock-turn figure as one amount is on a cost
basis while the other is in terms of selling value.

644

12. CENSUS OF BUSINESS: 1935

COMPARED WITH OTHER WHOLESALERS

Cooperative and voluntary groups together accounted for approximate-
ly three-eighths (37%) of the business of all full-line grocery merchant whole-
salers, of which they are a part, for the country as a whole in 1935. Total
net sales of full-service and limited-function wholesalers handling a full
line of groceries amounted to $1,953,762,000. Of this amount, wholesale mer-
chants not sponsoring voluntary groups accounted for 60.2 percent, voluntary-
group wholesalers 29.6 percent, cooperatives (see footnote to Table 2) 7.4
percent, cash-and-carry wholesalers 2.6 percent, leaving 0.2 percent for other
types. -

One of the most significant studies is the comparison of operating
costs for the various types of merchants. Expressed as a percent to net sales,
operating expenses were highest for sponsoring wholesalers (10.1) followed by
non-sponsoring wholesale merchants (8.9) . Cooperatives for the country as a
whole show slightly higher costs (5.2) than do cash-and-carry depots
(4.9). It is significant to note (Table 2) that both pay roll and stock
ratios (stocks on hand expressed as a percent to net sales) are, for the var-
ious types, consistent with the total expense ratios of which they constitute
important elements.

Possible explanations of the higher expense? for voluntaries as com-
pared with non-sponsoring wholesalers may be found in emphasis upon private
brands and in the group merchandising costs included in the reported expenses
of the sponsors. Group advertising and special services costs are sometimes
treated by the sponsors as part of their costs although funds may be collected
from retail members to maintain the group activities. Also, the voluntaries
are on the average much larger than the merchants not sponsoring groups,
$990,000 annual sales as compared with $440,000. A study of grocery wholesalers

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

13.

TABLE 2. —COMPARATIVE STUDY OF SALES, EXPENSES, PERSONNEL,

PAY ROLL AND STOCKS

FULL-SERVICE AND LIMITED-FUNCTION WHOLESALERS OF FULL-LINE GROCERIES

(Table is in two parts - see below)

Type of operation

Net
sales^

Number

of

estab- Percent

lish- Amount of
ments (add 000) total

Operating Stocks

expenses
percent

to
sales

on hand
percent

to
sales

Total

3,833 $1,953,762 100.0

8.9

Wholesale merchants 2,676

Voluntary-group wholesalers 584
Cash-and-carry depots 378

Retailer-cooperative warehouses* 157
Other types 38

1,175,839

60.2

578,019

29.6

50,605

2.6

144,054

7.4

5,245

0.2

(Continued)

8.9
10.1
4.9
5.2
5.3

12.3

12.3

13.3

9.6

9.8
7.7

TABLE 2

Type of operation

Active Employees
proprie- (full-time
tors and and part -
firm time) Avg.
members for year

Pay roll (add 000)

Total % to Full- Part-
amount sales time time

Total

Wholesale merchants
Voluntary-group wholesalers
Cash-and-carry depots
Retailer-cooperative warehouse*
Other types

1,443 67,563 $98,077 5.0 $97,352 $725

1,234

41 , 943

56,581

4.8

56.013

563

144

21,584

35,775

6.2

35,664

111

46

1,007

1,327

2.6

1,313

9

2,821

4,239

2.9

4,199

40

19

103

155

3.0

153

2

For comparison purposes all retailer cooperatives are included in this tabu-
lation, although some of them are more properly classified as short-line
houses .

14. .h CENSUS OF BUSINESS: 1935

by size (see Wholesale Distribution, 1935, Volume VI, Page 10) shows that
the lowest cost ratio is found in the $200,000 to $299,999 bracket and that,
for the larger establishments, expenses tend to increase with size. In this
connection it should not be assumed that higher expenses are necessarily
associated with increased group merchandising for, according to Table 4,
costs tend to decrease as the degree of sponsorship increases.

The slightly higher expenses as shown for cooperatives as compared
with cash-and-carry wholesalers may be due to more services rendered by many
of the former. Cooperatives as a whole have a higher stock ratio, higher
pay roll in terms of sales and higher annual average salary per employee,
$1,503 as compared with $1,318. As will be shown later, many of them grants-
credit and perform other services common to full-service wholesalers.

GEOGRAPHIC DISTRIBUTION
/That the group merchandising movement has made most headway in the
New England, Middle Atlantic and Pacific Coast States is clearly shown in
the map on Page 4 and in Table 3. In the Middle Atlantic Division, consist-
ing of the States of New York, New Jersey and Pennsylvania, establishments
identified with such groups accounted for 64.1 percent of all sales of full-
service and limited- function wholesalers handling a full-line of groceries,
while similar establishments in the Pacific Division accounted for 59.3 per-
cent of the total and in the New England Division 55.4 percent.

The significance of the growth of the movement geographically is
further emphasized by the fact that no state south of a line coinciding
644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 15.

with the Virginia — North Carolina boundary westward to include the Utah —
Arizona boundary shows as much as 15 percent group merchandising, while every
state north of the line, except Kentucky and Nevada, shows more than 15
percent. The northern states with the larger population centers show the
highest ratios.

Cooperatives are most numerous in the Middle Atlantic, East North
Central and New England Divisions in the order named (see Table 3), while
for voluntary groups, the order in 1935 was East North Central, Middle
Atlantic, New England and West North Central. The relative importance of
each type of group, from the standpoint of sales, is sho^n graphically in
Charts I and II.

A more detailed study than is shown in the tables reveals that
from the standpoint of total net sales, California was the leading state for
cooperatives, followed by Pennsylvania as a close second. For voluntaries.
New York was first, followed in order by Pennsylvania, Illinois, California .
and Ohio.

The group merchandise movement shows large gains in the big cities
of the country. Cooperatives and sponsoring wholesalers together accounted
for 52 percent of the sales of all the merchant wholesaler full-line grocery
business in the 13 cities of more »nan 500,000 population (1930), as against
only 32.7 percent for the remainder of the country. Voluntaries did 39.9
percent of the total in the largest cities but only 26.7 percent outside,
while cooperatives did 12.1 percent of the business in the larger cities but
only 6 percent for the remainder of the country

16.

CENSUS OF BUSINESS: 1935

TABLE 3.— GEOGRAPHIC DISTRIBUTION OF COOPERATIVE
AND VOLUNTARY-GROUP WHOLESALERS

Cooperat

ives and voluntaries
(combined)

Retail-coop,
warehouses

Voluntary-group
wholesalers

Geographic Nui

nber

tab-

3h-

its

Net

sales

Number

of Net

estab- sales

lish-

ments (add 000)

Number

of

es.tab-

lish-

ments

division of
es
li;

mei

% of total*
Amount for all
wholesale
(add 000) merchants

Net
sales

(add 000)

United States Total

741

$722,073

37.0

157

$144,054

584

$578,019

New England

97

52,796

55.4

20

8,115

77

44,681

Middle Atlantic

169

216,453

64.1

50

41,365

119

175,088

East North Central

151

155,675

43.2

26

20,079

125

135,596

West North Central

91

84,520

34.3

15

19,500

76

65,020

South Atlantic

52

41,522

17.8

14

12,445

38

29,077

East South Central

25

12,483

7.8

6

1,725

19

10,758

West South Central

55

25 , 528

9.7

4

1,296

51

24,232

Mountain

31

26,830

33.4

4

1,578

27

25,252

Pacific

70

106,266

59.8

18

37,951

52

68,315

* Sales of cooperative and voluntary-group wholesalers combined expressed as a
percent of sales of all full-service and limited-function wholesalers
handling a full line of groceries.

644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 15.

with the Virginia— North Carolina boundary westward to include the Utah-
Arizona boundary shows as much as 15 percent group merchandising, while every
state north of the line, except Kentucky and Nevada, shows more than 15
percent. The northern states with the larger population centers show the
highest ratios.

Cooperatives are most numerous in the Middle Atlantic, East North
Central and New England Divisions in the order named (see Table 3), while
for voluntary groups, the order in 1935 was East North Central, Middle
Atlantic, New England and West North Central. The relative importance of
each type of group, from the standpoint of sales, is shown graphically in
Charts I and II.

A more detailed study than is shown in the tables reveals that
from the standpoint of total net sales, California was the leading state for
cooperatives, followed by Pennsylvania as a close second. For voluntaries.
New York was first, followed in order by Pennsylvania, Illinois, California
and Ohio.

The group merchandise movement shows large gains in the big cities
of the country. Cooperatives and sponsoring wholesalers together accounted
for 52 percent of the sales of all the merchant wholesaler full-line grocery
business in the 13 cities of more -nan 500,000 population (1930), as against
only 32.7 percent for the remainder of the country. Voluntaries did 39.9
percent of the total in the largest cities but only 26.7 percent outside,
while cooperatives did 12.1 percent of the business in the larger cities but
only 6 percent for the remainder of the country

16.

CENSUS OF BUSINESS: 1935

TABLE 3. —GEOGRAPHIC DISTRIBUTION OF COOPERATIVE
AND VOLUNTARY-GROUP WHOLESALERS

Cooperat

ives and vo;
(combined)

Luntaries

Retail-coop,
warehouses
Number
of Net
estab- sales
lish-
ments (add 000)

Voluntary-group
wholesalers

Geographic Number
division of

estab-
lish-
ments

Net sales
% of total*
Amount for all
wholesale
(add 000) merchants

Number
of

estab-
lish-
ments

Net
sales

(add 000)

United States Total

741

$722,073

37.0

157

1144,054

584

$578,-019

New England

97

52,796

55.4

20

8,115

77

44,681

Middle Atlantic

169

216,453

64.1

50

41,365

119

175,088

East North Central

151

155,675

43.2

26

20,079

125

135,596

West North Central

91

84,520

34.3

15

19,500

76

65,020

South Atlantic

52

41,522

17.8

14

12.445

38

29,077

East South Central

25

12,483

7.8

6

1,725

19

10,758

West South Central

55

25,528

9.7

4

1,296

51

24,232

Mountain

31

26,830

33.4

4

1,578

27

25,252

Pacific

70

106,266

59.8

18

37,951

52 ■

68,315

* Sales of cooperative and voluntary-group wholesalers combined expressed as a
percent of sales of all full-service and limited-function wholesalers
handling a full line of groceries.

644

WHOLESALE DISTRIBITION: 1935

(HART 1. VOLl NTARY-CiROlP WHOLESALERS IJY GEOGRAPHIC DIMSIONS
NET SALES, PERCENT OF TOTAL FOR ALL FULL LINE GROCERY MERCHANTS

GEOGRAPHIC DIVISIONS

U. 8. TOTAL

MIDDLE ATLANTIC

NEW ENGLAND

PACIFIC

EAST NORTH CENTRAL

MOUNTAIN

WEST NORTH CENTRAL

SOUTH ATLANTIC

WEST SOUTH CENTRAL

EAST SOUTH CENTRAL

CHART 2. RETAILER COOPERATIYE WAREHOl SES HY GEOGRAPHIC DIYISIONS
NET SALES. PERCENT OF TOTAL FOR ALL Fl LL LINE GROCERY MERCHANTS

U. S. TOTAL

PACIFIC

MIDDLE ATLANTIC

NEW ENGLAND

WEST NORTH CENTRAL

EAST NORTH CENTRAL

SOUTH ATLANTIC

MOUNTAIN

EAST SOUTH CENTRAL

WEST SOUTH CENTRAL

1 21.4

BUREAU OF THE CENSUS

18. CENSUS OF BUSINESS: 1935

DEGREE OF COOPERATION
Voluntaries.

The degree to which voluntary-group wholesalers sold to cooperating
retailers is shown in Table 4. Only 30 of the 584 establishments reported
that 90 percent or more of their 1935 sales were to members, while a total
of 207 stated that 50 percent or more of their business was of this nature.
It is significant to note that 340 establishments with net sales of
$349,882,000 definitely indicated that less than one-half of their business
was with cooperating retailers. Information on degree of cooperation could
not be furnished by 37 houses but for the remaining 547, group merchandising
accounted for 38.7 percent of total sales. Assuming that this ratio held
true for all voluntaries, the total was approximately $223,693,000 for the
year 1935.
Expenses Decrease With Increased Group Merchandising .

In general, operating expenses decreased with an increase in group
merchandising. The lowest expense ratio is found for those with 90 percent or
more cooperation (8.3%), from which it increased consistently (see Table 4)
to 11.5 percent for the 157 establishments with 10 to 30 percent of their
sales to members. The ratio dropped slightly to 11.3 percent for those with
less than 10 percent group merchandising.

The number of outside salesmen per $1,000,000 in sales shows a
consistent decrease as the group merchandising ratio increased. Voluntaries
selling less than ten percent to members employed an average of slightly less
than 11 salesmen for each million dollars of sales as compared with four per
million for establishments on a 90 percent or more group merchandising basis.
The number of inside salesmen per million dollars of sales, on the other hand,
tended to increase as the portion of the business with group members rose.

30

31,837

29,793

2,629

8.3

1.7

3.9

61

57,990

44,41.2

5,370

9.3

0.9

6.5

lis

81,231

44,992

7,643

9.4

0.9

7.3

157

139,441

51,220

13,795

9.9

1.1

7.8

157

154,331

28,809

17,743

11.5

1.0

10.0

26

56,060

2,332

6,322

11.3

0.4

10.7

37

57,079

_ —

4,850

8.5

1.2

7.3

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 19.

TABLE 4.— VOLUNTARY -GROUP WHOLESALERS CLASSIFIED ACCORDING
TO PERCENTAGE OF 1935 SALES TO COOPERATING RETAILERS

Number Net Salesmen per

■ of sales Operating 1^1,000,000

Percentage of sales to estab Total Amount to eypen;e3 of sales-

cooperating retailers lish- amount members Amount % to In Out -

ments (add 000) (add 000) (aW 000) sales side side

Total 584 $578,019 $ ■■- ^53,3j7 13.1 1.0 8.2

Total reporting percentage 547 520,940 201,591 53,^507 10.5 1^ 8_3

90 percent or more
70 to 90 percent
50 to 70 percent
■ 30 to 50 percent
10 to 30 percent
Less than 10 percent

Not reporting percentage

Cooperatives
A study of the individual reports of cooperatives revealed that
slightly more than nine-tenths (91.1%) of all sales were to retail members.
Of the 157 establishments, 89 reported that all of their sales were to mem ■
bars, 27 stated that 90 to 99 percent of their business was of this nature,
while only 35 indicated that more than 10 percent of their business was with
non-members. Six houses failed to report on the inquiry.

CREDIT SALES
Cooperatives and voluntaries are analyzed in Table 5 according to
the percentage of their sales ,vhich .vcre maie on a credit basis including op3.i
account, commercial paper, installment, or other than strictly cash or c.o.d.
basis. In considering the relation bet./een costs and credit business it should
be remembered that services frequently run together and that it is next to im -
possible to isolate the influence of any particular one. High percentage of
644

20. CENSUS OF BUSINESS: 1935

credit, for example, is commonly associated with a high percentage of delivery
and vice versa. The reader is cautioned that the control in Table 5 is on the
basis of credit business and that the apparent effect of changes in credit
ratio upon costs may be due in part to the accompanying services or the lack
thereof.

Expenses for cooperatives selling entirely on credit, 24 establish-
ments with sales of $24,057,000, amounted to 6.6 percent of sales in contrast
to 4.1 percent for the 31 cooperatives which definitely stated that they did
not grant credit. Voluntaries selling 100 percent on credit had an expense
ratio of 11.0 as compared with 8.4 for those which sold less than 50 percent
(average of 27.4%) on a credit basis. The expense ratio for each type de-
creased consistently as the percentage of cash business increased. The 6.6
percent for cooperatives selling 100 percent on credit decreased to 5.5 per-
cent for those granting credit on 50-99 percent of their business and to
4.6 for those selling less than 50 percent on such a basis. As stated above,
the ratio was 4.1 for those selling strictly for cash. Credit information
was not given for 27 cooperatives.

For voluntaries, the expense ratio of the 100 percent credit
houses was 11.0 from which it dropped slightly to 10.8 for those in the 75-99
percent credit bracket; to 9.2 for those in the 50-74 range; and, as stated
above, to 8.4 for those selling more than 50 percent for cash. Ninety-
five voluntaries either failed to state their credit policies or they sold
entirely for cash.

In view of the economies to be obtained from a cash business, it
is significant to note that only 31 of the 130 cooperatives analyzed were on
a strictly cash basis, while 83 sold less than 50 percent for cash, but
generally limited credit to a short period, in many cases only seven days.
This would indicate that retailers are accustomed to buying on credit and

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 21.

that they fail to take advantage of the premiums offered for cash payment,
even when purchasing through their own warehouses.

TABLE 5.— CREDIT SALES*

Number

of

Total

Credit

es tab-

Net

expenses

sales

24

24,057

1,578

6.6

24,057

100.0

59

58,053

3,164

5.5

51,044

87.9

16

9,474

435

4.6

1,900

20.1

31

41,925

1,725

4.1

27

10,554

573

5.4

Type

Credit business lish- sales Amount Percent Amount Percent of

ments (add 000) (add 000) to sales (add 000) net sales

Retailer-cooperative

warehouses 157 $144,063 $7,475 5.2

All sales on credit
50-99 percent credit
1-49 percent credit
No credit business
Credit policy not stated 27

Voluntary-group

wholesalers 584 578,019 58,357 10.1

All sales on credit 46 41,596 4,560 11.0 41,596 100.0

75-99 percent credit 304 343,000 37,212 10.8 314,690 91.7

50-74 percent credit 64 49,404 4,558 9.2 32,447 65.7

1-49 percent credit 75 65,278 5,515 8.4 17,891 27.4

Credit policy not stated 95 78,741 6,512 8.3

* The control in this table is on the basis of percent credit only (see text) .

OPERATING EXPENSES

Frequency Distribution — Cooperatives
Cooperatives show a wide variation in their expense (including pay
roll) as portrayed in Table 6. Here, the 157 establishments are classified
according to expenses as a percent to sales into: under 2 percent, 2-3, 3-4,
etc. It is interesting to note that costs ranged from under 2 percent for 6
establishments to 10 percent or over for a similar number of warehouses. The
largest volume of sales is found in the group from 3 to 4 percent with
$33,368,000 or 23.2 percent of the total, while the largest number of establish-
ments (32) is found in the 5 to 6 group.

22. CENSUS OF BUSINESS: 1935. .."

These ratios suggest that, by rendering a minimum of services,
cooperative warehouses can be operated at extremely low costs but that, when
numerous functions such as granting credit and delivering are added, total
expenses of the few houses approximate those of service wholesalers. By the
use of Table 6, it is possible to compute average expenses that are not
unduly influenced by the extremely high or the extremely low cost establish-
ments. The table also permits the spotting of the more nearly typical expense
figure.

TABLE 6.— FREQUENCY DISTRIBUTION OF OPERATING EXPENSE RATIOS
RETAILER-COOPERATIVE WAREHOUSES

Number of
establish-
ments

Net

sa

les

Expenses (including pay roll)
percent to sales

Amount
(add 000)

Percent
of total

Total

157

$144,063

100.0

Under 2

2-2.9

3-3.9

4-4.9

5-5.9

6-6.9

7-7.9

8-8.9

9-9.9

10 and over

6

3,198

2.2

17

16,004 -

11.1

28

33,368

23.2

23

23,563

16.4

32

27,923

19.4

18

21,667

15.0

15

5,110

3.5

7

6,788

4.7

5

3,334

2.3

6

3,108

2.2

Business-Size Groups.

Operating expenses for the larger voluntaries, those with annual
sales of $2,000,000 or more each, were substantially higher than for similar
establishments with sales of from $200,000 to J499,999 (see Table 7). Houses
with the lowest expense ratio are found in the 5;.200,000 to $299,999 group
at 8.7 and, except for the $1,000,000 to 1,999,999 bracket, there was a
644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 23.

consistent increase for the upper brackets. Stated differently, whereas
it cost a $5,000,000 house $12.30 to market a representative bill of goods
amounting to $100, a similar bill could be marketed by an establishment in
the size group $200,000 to $299,999 for $8.70, on the average. For estab-
lishments with sales of $300,000 to $499,999, the rate was $9.50, and for
$500,000 to $999,999 houses, it was $9.70.

The increase in the larger brackets is attributable in a large
measure to increases in pay roll per dollar of sales. The pay roll ratio
parallels very closely the total expense ratio, of which it is the major
factor, the lowest being in the $200,000 to $299,999 bracket, and the
highest for the $2,000,000 and over houses. As will be shown in a later
table, the higher pay roll ratio resulted in part from higher wage rates
rather than less sales per employee.

Stocks on hand expressed as a percent to net sales, in contrast
to pay roll ratio, is higher for the smaller establishments and decreases
irregularly to a low of 11.1 percent for the extremely large houses. These
figures indicate that pay roll is much more important in the control of
operating expenses than is inventory.

Cooperatives .

Unlike voluntaries, the cooperatives show little variation in
expenses by size, with a tendency toward lower costs in the larger brackets.
The highest ratio for this type is found in the $200,000 to 5'499,999 size
group at 5.4, from which it recedes slightly but consistently with increase
in size to 5.1 for the over $2,000,000 size group. Pay roll does not loom
quite so importantly as an element of expense for cooperatives as it does
for voluntaries.

24. CENSUS OF BUSINESS: 1935

The modal size, the bracket having the largest number of establish-
ments, was the $300,000 to $399,999 group for voluntaries, while for coopera-
tives, it was less than one-half million dollars ($200,000 to $499,999 group)

TABLE 7.-- -SALES, EXPENSES, PERSONNEL, PAY ROLL AND STOCKS

BY BUSINESS-SI'^.E GROUPS

Active

Pay

Number

Ex-

prop-

Employees

roll

Stocks

of

Net

pen-

rietors

(full-time

per-

per-

Business-size

group

estab-

■ sales

ses

and

and part-

cent

cent

lish-

% to

firm

time) .Avg.

to

to

ments

(add 000)

sales

members

for year

sales^

•■ sales

Voluntary-group wholesale

srs584

S:.578,019

10.1

144

21,726

6.0

13.4

$5,000,000

and

[ over

11

107,286

12.3

4

4,476

7.4

11.1

$2,000,000

to

$4,999,999

43

128,413

10.0

1

5,098

6.3

13.3

tl, 000, 000

to

$1,999,999

104

143,845

9.2

33

4,889

5.4

12.9

$500,000

to

$999,999

176

122,979

9.7

47

4,502

5.5

14.8

$300,000

to

$499,999

130

51,400

9.5

38

1,879

5.3

14.0

$200,000

to

$299,999

70

17,769

8.7

11

604

4.6

14.8

$100,000

to

U99,999

56

5,564

10.5

4

238

5.6

13.5

Less than $10C

1,000

14

763

8.8

6

40

5.6

14.

Retailer-coope

srative

warehouses

157

144,063

5.2

2 , 822

2.9

9.8

Over $2,000,000

17

72,961

5.1

1,317

2.9

7.9

$1,000,000

to

$1,999,999

23

32 , 649

5.2

586

2.7

11.6

$300,000

to

$999,999

27

18,759

5.3

438

3.2

12.4

$200,000

to

$499,999

45

15,221

5.4

,

341

2.9

10.7

$100,000 to $199,999 24 3,347 5.3 103 3.0 10.2

Under $100,000 21 1,126 5.0 40 3.1 17.0

* Includes no compensation for proprietors and firm members of unincorporated
businesses.

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 25.

EXPENSES ANALYZED

Voluntaries .

To provide a better understanding of operating costs, each establish-
ment was asked to analyze its expense accounts and to report administrative,
selling, delivery, occupancy and miscellaneous expenses separately. Such an
analysis is shown for voluntaries by business-size groups in Table 8. As 91
houses were unable to supply the desired information from their accounts
or on the basis of carefully prepared estimates, data are presented for only
493 establishments.

The average cost of marketing a representative bill of goods
amounting to $100, for the 493 establishments as a whole, was $9.90 divided
as follows: administrative expenses $2.60; selling $2.70; delivery $1.30;
warehousing $1.50; occupancy $.80; and "other expenses" $1.00. With some
irregularities, the larger houses had higher selling, delivery, and ware-
housing costs but lower occupancy (rent; maintenance labor; water, heat,
light and power; building repairs and supplies, etc.) and "other expenses"
per dollar of sales.

Administrative expenses show little variation with size of house, the
ratio being constant at 2.7 for all groups over $300,000. Selling expenses
increase in the upper bracket. The fact that they are composed largely of
salesmen's salaries and expenses and of advertising suggests that emphasis
upon private brands or wide sales areas are possible explanations of the
higher costs for the extremely large houses. Delivery expenses also increase
in the higher brackets probably because the larger houses, located as a rule
in population centers, make delivery on a larger portion of their sales, and
because the service is rendered at more frequent intervals. When comparing
644

26. CENSUS OF BUSINilSS: 1935

size groups, it is suggested that warehousing and occu_oancy expenses be com-
bined. These expenses considered together increase with size which probably
reflects higher labor and rental costs rather than more warehousing facili-
ies, for, as shown in Table 7, inventory per dollar of sales decreases in the
upper brackets.

TABLF 8.— AIJALYSIS OF OPERATING EXPENSES BY BUSINESS-SIZE GROUPS

VOLUNTARY-GROUP WHOLESALERS

Operating expenses (including pay roll)

Number expressed is a percent to net sales

of Net
Business-size estab- sales Admin- De- Ware- Occ-
group lish- (add 000) istra- Sell- liv- hous- upan-

ments Total tive ing ery ing cy Other

Total 493 507,610 9.9 2.6 2.7 1.3 1.5 .8 1.0

$2,000,000 and over 48 203,891 10.7 2.7 3.2 1.4 1.7 .8 .9

$1,000,000 to $2,000,000 98 136,036 9.2 2.7 2.1 1.2 1.5 .8 .9

$500,000 to $999,999 151 104,771 9.7 2.7 2.6 1.2 1.2 .9 1.1

$300,000 to $499,999 119 47,275 ' 9.4 2.7 2.3 1.1 1.2 1.0 1.1

$200,000 to $299,999 42 10,380 9.3 2.3 2.6 .9 1.1 .9 1.5

Less than $200,000 35 5,257 9.9 1.8 2.8 1.1 1.4 1.0 1.8

Cooperatives .

Of the 157 cooperatives, 121 with sales amounting to $116,604,000
analyzed their expenses. The total expenses of these 121 establishments
amounted to $5,257,000 or 5.4 percent of sales; thus their costs were slightly
higher than average for the 157 houses as shown in Table 2.

Cooperatives, as explained above, vary materially in the services
which they render. Some operate very much as full-service wholesalers while
others merely warehouse a limited number of items which the retailer must call
for and for which he must pay cash. Those with the least services showed only
two items of expense — administrative (2.0% of sales) and a combined figure for
warehouse and occupancy (1.3% of sales). Inasmuch as these two costs must
644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 27.

be incurred by all cooperatives with warehouses, it would appear than 3.5 per-
cent represents approximately the minimum expense ratio attainable, except ^
where drop, shipping is a substantial factor or unless some services are avail-
able without charge or on a self-sustaining. basis.

Selling expenses of the houses (79 in all) which performed this
function in part amounted to 1.0 percent of sales, while delivery expenses
(82 houses) amounted to 0.8 percent of sales. No information was available ■
on the percentage of sales that were delivered.

EMPLOYMENT AND PAY ROLL

On the 1935 wholesale questionnaire each establishment was asked to
analyze its employment and pay roll for a selected week. Provision was
made for dividing the paid employees into six classes: executives and
salaried corporation officers, office and clerical employees, inside sales-
men, outside salesmen (including missionary and good-will representatives),- .
warehousemen and "other employees". The number and pay roll of each class
for one week, full-time and part-time employees separately, were called for. -
The week ending October 26, 1935 was suggested as a representative period
but, where due to peculiarities of an individual concern's operations, this
week was not representative, an establishment was requested to choose another
week in its busy season and to report for such period.

Voluntaries.

The 584 voluntaries reported 21,726 full-time and 265 part-time
employees for the week or a combined total of. 21,991. It is evident from
these figures that employment for this type of wholesaler is characteris-
tically full-time, part-time employees representing less than two percent
of the total. The total of 21,991 for the week is only slightly higher than
the average of 21,684 for the year, as given in Table 1, thus showing that
employment is fairly regular throughout the year.

28. CENSUS OF BUSINESS: 1935

Of the 21,726 full-time employees, 20,631 were classified by oc-
cupational groups as follo.irs: executives and salaried corporation officers,
879; office and clerical 5,073; inside selling 643; outside selling 4,434;
warehousemen 7,481, and "other employees" 2,121. Warehousemen were most
numerous for both full-time and part-time. Salesmen, full-time and part-
time, outside and inside combined, numbered 5,144, or 24.6 percent of all
employees analyzed.

As was to be expected, the average weekly wage was highest for
executives and corporation officers (full-time) at $97, follcved by outside
salesmen at |44, inside salesmen $32, office and clerical $26, warehouse-
mi.n $22 and "other employees" at $21. The "other" classification is composed
of two general types; (a) those performing duties which could not be
classified properly elsewhere (maintenance employees, charwomen, elevator
operators, truck drivers, etc.), and (b) those performing functions falling
within two or more of the other classifications, no one of which dominated.
Cooperatives .

One feature which distinguishes cooperatives sharply from voluntar-
ies is the smaller number of salesmen employed by the former. Whereas sales-
men, outside and inside combined, accounted for 24.6 percent of the total
classified for voluntaries, they represent less than ten percent for the
cooperatives. On the other hand, warehousemen accounted for 47.8 percent of
the total for cooperatives as compared with 35.2 percent for voluntaries.

That less emphasis is placed by cooperatives upon soliciting and
selling is further evidenced by the fact that they pay their salesmen, both
inside and outside, less per week than do the voluntaries. Other classes
of employees are paid approximately the same by the t.vo types -- the volun-
taries paying their executives slightly more, while the cooperatives pay
slightly higher for office and clerical employees and for warehousemen.

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

29.

TABLE 9.— EMPLOYMENT AND PAY ROLL FOR WEEK ENDING OCTOBER 26, 1935

BY OCCUPATIONAL GROUPS

A - VOLUNTARY-GROUP WHOLESALERS

Class of employee

Full-time employees Part-time
pay roll for one week employees

Average Pay roll

Number Amount weekly Number for

wage per one week,

employee

Total

21,726 $575,950

$31

265

$3,327

Executives and salaried
corporation officers

Office and clerical

Inside selling

Outside selling

Warehousemen

Other employees

Not classified (52 estab-

879

85,099

97

11

256

5,073

133,626

26

22

192

643

20,770

32

14

118

4,484

198,005

44

3

34

7,481

163,355

22

106

1,570

2,121

44,830

21

105

1,133

lishments)

1,045 30,265

29

4

24

B

- RETAILER-COOPERATIVES

Total

2,807 82,316

29

78

879

Executives and salaried
corporation officers

Office and clerical

Inside selling

Outside selling

Warehousemen

Other employees

Not classified

180

15,760

88

6

97

811

21,947

27

17

150

103

2,966

29

1

6

153

5,572

36

2

40

1,310

30,025

23

42

479

183

4,965

27

10

107

67

1,081

16

.

644

30. CENSUS OF BUSINESS: 1935

Employees by Business-Size Groups - Voluntaries.

Detailed information on full-time employment and pay roll of volun-
tary-group wholesalers is given by business-size groups in Table 10. For each
class of employee, the number of establishments in each size-group reporting
such employees is given together with the number of employees and the average
weekly wage. The average annual sales are also given for each occupational
group by size of establishment. It should be noted that the average sales
figures relate only to those establishments reporting such personnel. For ex-
ample, the $1,783,000 per executive in the $5,000,000 and over group is based
upon the information furnished by the 9 houses in this size group reporting
executives. Likewise, the average sales per salesman represents the total
sales of houses reporting salesmen divided by the number of such employees.

It is apparent from this table that, as a rule, the larger volun-
taries pay higher wages on the average and that, with some exceptions, the wage
rates decrease with size of business. This general rule holds not only for the
higher paid employees such as corporation officers or outside salesmen but
also for office personnel and for warehousemen. Higher average wage rates in
the larger size brackets are a partial explanation of the higher costs for the
larger establishments. It should not be assumed, however, that size alone is
responsible for higher wage rates, for the larger establishments are more
likely to be located in the larger cities where rates are higher in general.

The average pay for executives and corporation officers, all size-
groups combined, was $97 per week ranging from a high of $213 for the largest
size group down to $50 for the one establishment in the under $100,000 group
which analyzed its employment. Significant economies in employment of
644

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

31.

executives are noted when their number is related to annual sales. Establish-
ments in the $300,000 to |499,999 class, for example, employed one executive
for each $198,000 in sales. For the next largest size group, however, tho
average was $324,000. The $5,000,000 and over class engaged one executive for
each $1,783,000 in sales.

The extremely large houses sho,v largest sales per executive and per
inside salesmen while for other classes of employees, smaller size groups have
a more favorable average. For office and clerical employees, the highest
rate is the $1,000,000 to $1,999,999 group at $123,000, which group also has
the highest rate for outside salesmen at $143,000 and for "other employees"
at $181,000. Smaller houses show greater productivity per warehouseman.

TABLE 10.— FULL-TIME EMPLOYEES AND THEIR PAY ROLL
BY OCCUPATIONAL CLASSES AND SIZE OF
ESTABLISHMENT

Voluntary Group Wholesalers Only

(Figures are for week ending October 26, 1935)

Class of employee
Business-size group

Total analyzed

Number Average

Establishments of Average annual sales

reporting such full-time weekly per full-time

employees employees wage employee

532

20,681

$31

$5,000,000 and over

$2,000,000 to $4,999,999

$1,000,000 to $1,999,999

$500,000 to $999,999

$300,000 to $499,999

$200,000 to $299,999

$100,000 to $199,999

Under $100,000

11
43

97
158
125
49
35
14

4,431

5,075

4,542

4,071

1,826

414

232

40

34
31
33
30
27
28
25
23

644

32.

CENSUS OF BUSINESS: 193;

TABLE 10. -(CONTINUED) FULL-TIME EMPLOYEES AND THEIR PAY ROLL
BY OCCUPATIONAL CLASSES AND SIZE OF
.:.,:.•: :-■•-: ;' - ESTABLISHMENT

Voluntary Group Wholesalers Only
(Figures are for week ending October 26, 1935)

Numbe r

Average

Class of employee

Establishments

of

Average

annual sales

Business-size group

reporting such

full-time

weekly.

per full-time

employees

employees

wage

employee

Executives and salaried

corporation of ficsrs ,. total 359

879

__I97

$ 493^000

$5,000,000 and over

9

44

213

1,783,000

$2,000,000 to $4,999,999

40

151

127

800,000

$1,000,000 to $1,999,999

83

220

110

524,000

$500,000 to $999,999

109

240

78

324,000

$300,000 to $499,999

85

173

58

193,000

$200,000 to $299,999

20

33

:55

152,000

$100,000 to $199,999

12

17

56

112,000

Under $100,000

1

1

.50

50,000

Office and clerical, total

492

5,073

26

102,000

$5,000,000 and over

11

1,228

30

87,000

$2,000,000 to $4,999,999

42

1,311

25

93,000

$1,000,000 to $1,999,999

97

1,083

27

123,000

$500,000 to $999,999

156

926

25

119,000

$300,000 to $499,999

116

394

23

117,000

$200,000 to $299,999

40

83

22

122,000

$100,000 to $199,999

26

42

22

93,000

Under $100,000

4

6

23 ^

_ 53,000

Inside salesmen, total

191

643

32

333,000

$5,000,000 and over

4

22

43

1,084,000

$2,000,000 to $4,999,999

25

241

30

307,000

$1,000,000 to $1,999,999

^ ~46 -

155 -- -

3S -

--420,000—

$500,000 to $999,999

49

92

28

334,000

$300,000 to $499,999

35

86

26

160,000

$200,000 to $299,999

15

24

22

153,000

$100,0 JO to $199,999

10

12

.23

123,000..

Under $100,000

6

11 ■ '_

y i" 22

31,000..

Outside salesmen, total

500 ~

4^484

"'^44

102,000

$5,000,000 and over

11

1,122

49

96,000

$2,000,000 to $4,999,999

43

973

53

132,000

$1,000,000 to $1,999,999

95

880

45

143,000

$500,000 to $999,999

154

932

39

117,000

$300,000 to $499,999

115

338

34

117,000

$200,000 to $399,999

45

117

35

97,000

$100,000 to $199,999

30

61

31

76,000

Under $100,000

7

11

30

34,000

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

33.

TABLE 10.— (CONTINUED) FULL-TIME EMPLOYEES AND THEIR PAY ROLL
BY OCCUPATIONAL CLASSES AND SIZE OF
ESTABLISHMENT

Voluntary Group Wholesalers Only

(Figures are for week ending October 25, 1935)

Class of employee
Business-size group

Number Average

Establishments of Average annual sales

reporting such full-time weekly per full-time
employees employees wage employee

Warehousemen, total

505

7,481

$22

$72,000

$5,000,000 and over

11

1,836

24

58,000

$2,000,000 to $4,999,999

41

1,811

20

67,000

$1,000,000 to $1,999,999

97

1,711

22

77,000

$500,000 to $999,999

153

1,361

24

79,000

$300,000 to $499,999

118

566

19

82,000

$200,000 to $299,999

46

115

19

101,000

$100,000 to $199,999

32

72

17

69,000

Under $100,000

7

9

18

45,000

Other employees, total

314

2,121

21

133,000

$5,000,000 and over

4

229

29

154,000

$2,000,000 to $4,999,999

34

583

23

172,000

$1,000,000 to $1,999,999

65

493

23

181,000

$500,000 to $999,999

94

520

19

128,000

$300, OOC to $499,999

73

219

19

134,000

$200,000 to $299,999

25

42

21

145,000

$100,000 to $199,999

17

28

14

97,000

Under $100,000

2

2

17

75,000

COMMODITY

SALES

Each cooperative or voluntary group wholesale establishment was
asked to analyze its sales by commodities and show such items as sugar, flour,
coffee, etc., separately. Of the 584 voluntaries, 200 were able to supply
satisfactory commodity information. Net sales of the 200 establishments
amounted to $185,738,000 or 32.1 percent of sales for all voluntaries. Cor-
respondingly, 69 of the 157 cooperatives supplied commodity data. Sales of
the 69 amounted to $72,843,000 or 50.6 percent of the total for the classi-
fication. The commodity analysis for each type is presented in Table 11.
644

34. CENSUS OF BUSINESS: 1935

Canned foods consisting of canned fruits, vegetables, meats, milk,
etc. constituted the most important commodity line for voluntaries, accounting
for one-third (32.6%) of all sales. Sales of sugar represented 10.1 percent
of the total followed in turn by flour (5.6%); cigars, cigarettes and tobacco
(5.2%); coffee (4.9%); soap and toilet preparations (3.5%); and confectionery
(2.1%). Miscellaneous groceries consisting of cereal preparations, extracts
and spices, lard substitutes and cooking fats, nuts, oleomargarine and butter
substitutes, pickles and preserves, rice, tea, etc. accounted for 24.2 percent
of all sales. Other items each represented less than 2 percent of the total.
Some establishments either did not handle many of the items listed
in Table 11 or were unable to segregate the sales thereof. The first percent-
age column in the table shows the ratio of sales of each commodity to the
total net sales of only those houses which report its sales. For example,
only 165 of the 200 voluntaries included in the table reported sales of con-
fectionery. For these 165 houses, confectionery amounted to 2.5 percent of the
net sales. Stated differently, not all voluntaries handled confectionery but
for those which did, this commodity line accounted for 2.5 percent of sales.
Similarly, not all houses reported tlie sale of flour, but for those that did,
this item represented 6.2 percent of their total sales.

Commodity information is presented in part B of the table for co-
operatives. The range of commodities handled by this class of establishment
is, if anything, slightly broader than it is for voluntaries as they reported
sales of 15 non-food items, each amounting to 0.1 percent or more of total
sales, as compared with 11 for voluntaries.

The data presented in Table 11 provides wholesale grocery houses with
suggestions for balancing sales emphasis and for the eliminating of lines.
By comparing their sales ratios with those given in this table, the various

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS 35.

houses can see how they differ from the group, as a whole, as the table shojrs hOAf
many of the total number of wholesalers analyzed handle a given line of merchan-
dise and the importance of each line.

TABLE 11.— COMMODITY SALES
A - VOLUNTARY-GROUP WHOLESALERS

(Only establishments reporting sales by commodities are includsd in this table)

Commodity
Establishments
reporting sale
Commodity of commodity

Number

Net sales
(add 000)

Sales

of

specified

commodity

(add 000)

sales,
percent of

Total
Net net
sales sales

Total

200

$185,758 S185.738

100.0

Bakery products

Beer and other fermented malt liquors

Butter and cheese

Canned foods

Canned fruits

Canned vegetables

Canned fish and sea foods

Canned meats

Canned milk

Other canned foods

Not itemized
Coffee

Green

Roasted

Not itemized
Confectionery

Candy

Chewing gum

Other confectionery

Not itemized
Dairy and poultry products, except

butter and cheese
Fish and sea foods
Flour

Fruits and vegetables, fresh
Groceries (except as listed)

Cereal preparations

Extracts and spices

Lard substitutes and cooking fats

Nuts (all kinds)

Oleomargarine and other butter
substitutes

Pickles, preserves, jellies & sauces

Rice

64

67 . 300

1.611

2.3

.9

30

34 . 692

1,096

3.2

.6

83

97 . 790

2,044

2.1

1.1

200

185,738

60,611

32.6

32.6

193

174,773

13,754

7.9

193

174,773

22,092

12.6

190

173,520

7,277

4.2

184

170,141

3,135

1.8

189

172,280

6,747

3.9

140

134,939

4,796

3.6

7

10,965

2,810

25.6

194

184.229

9.046

4.9 4.9

13

33,334

296

.9

178

163 , 370

7,474

4.6

15

19,537

1,276

6.5

165

154.884

3.870

2.5 2.1

155

135,422

2,500

1.8

142

128,626

706

.5

28

30,694

264

.9

10

15,969

400

2.5

24

26,923

729

2.7

.4

45

62,516

626

1.0

.3

189

167.277

10 , 377

6.2

5.6

48

44 , 836

3.179

7.1

1.7

200

185,738

44,911

24.2

24.2

134

177,506

9,002

5.1

171

173,406

2,459

1.4

167

133,872

3,366

2.5

148

151,353

2,457

1.6

33

36,742

517

1.4

183

169,831

6,693

3.9

180

160,153

1.646

1.0

36.

CENSUS OF BUSINESS: 1935

TABLE 11.— (CONTINUED) COMMODITY SALES
A - VOLUNTARY GROUP WHOLESALERS

(Only establishments reporting sales by commodities are inclucieci in this table]

Commodity
Establishments Sales sales,
.- -^ reporting sale of percent of

Commodity of commodity specified Tot 1

. .__ Net sales commodity Net net

Number (add 000) (add 000) sales sales

Teas

Other groceries ~ „„w.-_

Not itemized
Meat and meat products
Soft drinks

Sugar ^ /' , . _^,..,..

Wines and spiritous liquors _ _ -
Other food and related products _ .

Won-food commodities
Feed
Clothing and furnishings, men's

and boys '
Notions

Drugs and drug sundries
Soaps and toilet articles and

and preparations
House furnishings
Hardware
Paper goods
Stationery and stationery supplies

Cigars, cigarettes and tobacco
Cigars
Cigarettes
Tobacco
Not itemized

169

108

2

§2.

76

5^173,646

120,784

270

54^452.

90 , 189

r 6,219

12,513

39

9L4.

1^172

3.6
10.4
14.4

-_i_Z_
1.3

_5
.6

193

182^024

18^687

10.3

10.1

7

20^886

2.058

9.9

1.1

15

25,210

2.959

11.7

1.5

14

10,132

176

1.7

.1

15

11,828

8

8,337

46

37 , 194

116

111,179

3

4,260

14

12.004

76

56,738

21

22,431

81

96,671
C5,612

85

70 , 469

82

69,001

35

22,207

264

2.2

.1

100

1.2

.1

270

.7

.1

6,613

5.9

3.6

100

2.3

.1

592

4 9

.3

1,317

2.3

.7

172

.8

.1

9 , 592
718

__9^9

1.1

5.2

3,975

5.6

1,858

2.7

3,041

13.7

Miscellaneous groups of commodities

All other commodities

Receipts from services

11

62

10,478

71,601

904 8.6

1,071
677

.9

.:6

.4

VOLUNTARY GROUP AND COOPERATIVE WHOLESALERS

37.

TABLE 11.— (CONTINUED) COMMODITY SALES
B - RETAILER-COOPERATIVE WAREHOUSES

(Only establishments reporting sales by commodities are included in this table)

Commodity
Establishments
Commodity reporting sale

of commodity

Number

Net sales
(add 000)

Sales

of

specified

commodity

(add 000)

sales,
percent of

Total
Net net
sales sales

Total food and related commodities

Bakery products

Beer and other fermented mat

liquors
Butter and cheese
Canned foods

Canned fruits

Canned vegetables

Canned fish and sea foods

Canned meats

Canned milk

Other canned foods

Not itemized
Coffee

Green

Roasted
Confectionery

Candy

Chewing gum

Other confectionery

Not itemized
Dairy and poultry products

(except butter and cheese)
Fish and sea foods
Flour

Fruits and vegetables, fresh
Groceries (except as listed)

Cereal preparations

Extracts and spices

Lard substitutes and cooking fats

Nuts (all kinds)

Butter substitutes

Pickles, preserves, jellies, jams
and sauces

Rice

Teas

Other groceries

69

S72,843

$72 , 843

100.0

19

S2,810

834

3 7

1.1

11

14,143

442

3.1

.6

45

55.615

2,808

5.0

3.8

69

72,843

22,434

30.8

30.8

5

8,953

82

.9

67

71 , 478

3,663

5.1

59

68.015

1,271

1.9

1.7

66
65
60
6'
62
43

§8,
5
67
59
54
44
16

18,
28
62
13
69
58
60
49
50
12

58
61
63
34

72,523
72,329
69,386
71,785
70,911
57,491

72.479

66,297
66,254
21,447

33,288

68 ,.748
66,367
57,927
61,891
13,525

65 , 848
69,587
71,512
49,748

5,612
6,748
2,472
1,442
3,248
2,548
364
5,745

906

3,866
995

1,129
632
215

1 , 767
525
785

5.704

7.7
9.3
3.6
2.0
4.6
4.4

5.2

746

1.1

355

.5

128

.6

42

2.7

5.6
1.5
1.9
1.0
1.6

2.7

.8

1.1

11.5

5.1

1.2

28

31.981

275

.9

.4

62

71,307

3,688

5.2

5 1

13

17,369

656

3.8

.9

69

72,843

15,618

21.4

21 4

38.

CENSUS OF BUSINESS: 1935

TABLE 11.— (CONTINUED) COMMODITY SALES
B - RETAILER-COOPERATIVE WAREHOUSES
(Only establishments reporting sales by commodities are in':lud3d in this tajole)

Commodity

Establishments
reporting sale

of commodity

Net sales
Number (add 000)

Sales

of

specified

commodity

(add 000)

Commodity

sales,
percent of

Total
Net net
sales sales

Meat and meat products

Soft drinks

Sugar

Wines and liquors

Other food and related products

Non-food commodities

Feeds

Grains

Seeds (field, garden and flower)

Clothing and furnishings,
men's and boys'

Notions

Shoes and other footwear

Dry goods and textile products

Automotive equipment, parts and
accessories

Soaps and toilet articles

Wiring supplies and construction
material

House furnishings

Hardware

Petroleum and its products

Paper goods

Cigars, cigarettes and tobacco
Cigars
Cigarettes
Tobacco
Not itemized

All other commodities

Receipts from services

3

3,634

3

2,721

1

2,175

3

4,520

6

6,708

2

3,999

3

4,089

6

8,693

35

41 , 074

10

20,904

2

5,437

3

3,145

4

3,735

21

35,288

28

40,064

19

19,163

22

21,850

13

19,345

311
111

55

192
56
50
50

37
2,914

63
293

59
197
732

2,349

8.6
4.1
2.5

4.2

.3

1.3

1.2

.4
7.1

.3
5.3

1.9
5.3
2.1

5.9

4J,82

160
935
297
907

309

.8
4.5

1.5

7.4

26

$29,383

$2,079

7.1

2.9

34

51,083

745

1.5

1.0

67

72,451

6,911

9.5

9.5

9

11,814

966

8.2

1,3

8

19,312

1,161

6.0

1.6

.4
.2
.1

.3
.1
.1
.1

.1

4.0

.1
.4

.1

.3

1.0

3.2

521