OCR Text |
Show THE MERCHANTS PROFIT The remarkable degree of operating economy achieved by modern retailing is revealed in some figures released by one of the country's leading chain grocery systems. The figures deal with just what happens to each dollar spent by customers for food. Out of that dollar, more than 80 cents is paid out to farmers and other suppliers of goods. About 1 1 cents is paid out to employes in the form of wages, salaries and bonuses. About 6 cents goes for operating supplies sup-plies and other overhead expenses., Slightly over one cent goes to Federal state and local governments for taxes. Depreciation De-preciation costs and compensation to elected officers of the company account together for a trifle less than seven-tenths of one cent. And the remainder fess than eioht-tenths of one cent remain for profit to stockholders and surplus. j In other words, volume of business makes it possible for systems such as this to operate with a profit so small that it is but a microscopic part of the consumer's total spending. All kinds of stores, obviously, cannot operate on such low margins where, for example, seasonal and luxury goods are involved, profits must be higher. But, regardless of the type of store, the margin of profit is always astonishingly low. The consumer should remember this when he feels like blaming the merchant for today's high prices. The stores you patronize are doing everything they can to protect your buying power and their profits are by far the smallest part of th e cost of commodities. |