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Show 7 "Utlt UP" fOR J ' llSb SAFE DRIVING; save oh mis i JL Worn pot on your front aML T!l tire usually meon your 1 ' :f J1 wheel ort out of olignment. 1 'iTjXv Better top in for a front-end l,jT. "Cp-' check-up. Our aligning job I ijjjjj I will ofguord your driving; llfjj j reduce wor on your tiresl V, J I One-Stop Service Thof Keeps Yen Ootogl Thorley Motor Company 1 1 "";". water and ordinary toilet soap, v CZZZ vou CJn enj0y truly luxurious bathing! 1 1 t Step into a bathtubful of billowing, iridescent, I f ! soapy bubbles . . . thoroughly-cleansing, gently 1 1 I lUN """'"g suds that give your skin and complexion l C?l $mootn' radiant glow of health ' Wa ind beauty. Call us todayl J ATIilfi PLUMBING and HEATING 139 NORTH 100 WEST PHONE 93 uthorized Culligan Soft Water franchise In Iron County For Results See Record Classifieds mm mmsm m raci you pay m ssmi . During the first "milk price truce" requested by Governor Lee, Safeway presented full cost and profit figures to Utah's Milk Study Committee. These figures included: could cut plant and delivery costs all along the line. Like A per-quart analysis of cost, and profits in milk for ?ny, SOund busincss rcratin. lucerne is set up with an eye the 4 week period ending June 18, 1955. ! tomorf.ow UP to handle greater volume w.th little r increase in cost so that the per quart plant cost of Net profit earned by the Lucerne Milk Company, handling milk would be lower, celling to Safeway, in 1954 - totalling $137,326.00 ' a little over 26.11 on its investment. Lucerne's net profit earned through the first 20 AND WHAT ABOUT PROFITS? weeks in 1955 totalling $52,575.08. The substantial profit figures showed that Safeway could Llke any busincss concern, Safeway works toward in- sell milk for less, continue to pay top market prices and creased business through greater volume and lower costs, quality bonuses to dairy farmers and still earn a reason- As Safeway'i overall milk business increases per quart profits able profit and good return on its investment. To fully an rtduced and the difference passed on to you in appreciate how this could be done you should know bow lower milk prices. costs tnd profits are figured in milk. tn the fouf wctk rcri(Xj (shown Moyv) Safeway's Lucerne plant profits were 1-40100 cents per quart. Safeway Stores received the standard margin of 2-40100 cents per quart as HERE ARE THE SIX BASIC COSTS: compensation for store handling and profit Lucerne's May 21 report for the preceding 4 week period showed Lucernes profit of 1-21100 cents per quart. The higher profit for the 1. The costs f the raw milk itself; June period came from increased volume and lower costs. 2. The costs of. picking it up; While these per quart profits seem low, they are substan- 3. The costs of pasteuriiing, homogenizing, Val "hQent based n, v?,ume- 4 ?eck "' f"di?g testing and packaging the milk; .une fra"?Ple, & Jucerne s net profit for the ' first 24 weeks this year up to $68,205.65. So you can see 4. Administrative costs; how, in the future, Safeway could make a reasonable overall ,. . profit while still reducing its per quart profit, and passing 5. Delivery cost,; and the reduction on to you fn loer nk plricej 6. Advertising costs. ggfeway believes, is a sound way for milk bottlers Of these costs, the most important and biggest is the an( retailer to compete for your busincss. And it cannot price paid dairy farmers for milk. This price comes to nu1 Utah's dairy farmers if the price they are paid for almost 12 cents a quart on the milk you buy at Safeway. mi"( ' P1"0'- Unfortunately neither the Milk Study Committee nor the Legislative Council has recommended any positive action. SHOULD THE PRICE PAID DAIRY ,0 pro,ect doiry ,arme, FARMERS BE REDUCED? r . Safeway says NO! Dairy farmers arc essential to the wel- SAFEVJ AY'S f"n nn rt fare of Utah's citizens. They must have fair prices to stay rt If r f tJ .OiI UIJ U in business, and those fair prices must be constant. QliOrt of flllllc For this reason, h is Safeway's policy (never violated) to pay top market prices for milk - PLUS bonuses for AUDITED FIGURES FOR 4-WEEK PERIOD quality. t, . . . . ENDING JUNE 18, 1955 But as you can see this is a tempting place to cut costs and that's a way "price wars" begin. That's why Safeway . B . .. . . . presented witnesses to Utah's Milk Study Committee - I- Pnce pa.d dairy farmers, witnesses who testified, from experience, that where theprice including quality bonuses 11-94100 Cents j paid dairy farmers for milk is protected (by law or other 2. Cost of picking up milk from 1 regulation), price wars do not occur. For then, bottlers and farms, fat loss, finished ; retailers cannot pass the costs of competitive pricing back produce loss 32100 Cents : the easy way to dairy farmers. 't 3. All plant costs, including laboratory, cartons, union labor, machinery, overhead HOW, THEN, CAN THE COSTS IN MILK and maintenance. 3-56100 Cents REDUCED? 4 Adminis,ra,ive cost 18100 Cents I 5. Delivery expense, including By reducing processing, delivery, and other service costs labor, trucks, ice, etc 71100 Cents through greater efficiency and better methods of operation. 6 Advertising costs 49100 Cents F0!t,PL.f-! SarCWay dcycl0ptd 8 "I1 ?f Wddin$ Profit to Lucerne M0100 Cent, its milk plant pipe lines so that the work (and costs) of i-iwwnn taking the lines apart each day for cleaning would be elim- To Safeway Retail Stores 2-40100 Cents "mated and the cleaning job would be more complete more sanitary. This helps to reduce plant costs. "------------ Safeway has also gained efficiency through cash-andarry WHY Saffway k PiiRiicuiwr tuic ctatc.e..t sale of milk through stores. Any other processor or distrib- WHY SAFEWAY ,S PUBLISHING THIS STATEMENT utor who wants to concentrate on this method of store sales Safeway was born in neighboring Idaho. We have a of milk and it is done in many parts of the United States big stake in Utah and a citizen's concern for Utah's well- can have the same kind of efficient operation as Safeway. being. Safeway is confident that in the future it will find many We believe we have a responsibility to the public, our new ways to reduce costs. employees, suppliers, and stockholders to publish the record And, of course, any increase in volume sales (and that', f 0Ur Milk Study Committee, what any competitive businessman or concern works toward) Watch for these reports in this newspaper. i |