STATES DEPARTMENT OF AGRICULTURE In Cooperation with Bureau of Business Research, Northwestern University j MISCELLANEOUS CIRCULAR NO. 54 WAS HINGTON, D. C. OCTOBER, 1925 f EFFICIENT METHODS OF RETAILING MEAT BY ROY C. LINDQUIST, Research Agent in Marketing Bureau of Agricultural Economics, Ke:»oarch Assistant Bureau Business Research Northwestern University CONTENTS Page HAvtr to Choose a Location. 2 Relation of Store to Successful Business . 7 Personnel and Management.14 Purchasing .18 Refrigeration and Care of Meat .22 Cutting of Meat.24 Merchandising.27 Meeting Competition.40 Keeping Records. 43 WASHINGTON - GOVERNMENT PRINTING OFFICE 1925 ACKNOWLEDGMENTS Various organizations connected with the livestock and meat industry assisted in the studies in Chicago, Cleveland, and New York upon which this bulletin is based. The following organi¬ zations and their personnel deserve special mention: The United Master Butchers Association of America, repre¬ sented by the Chicago, Southwest Side Chicago, Ye Olde anc ' Washington Heights, New York City, and State of New York branches; the Institute of American Meat Packers: the Nationnl Livestock and Meat Board; the National Association of Meat Councils; the Cleveland Betail Meat Dealers Association; rep¬ resentatives of the trade press; and the retailers whose shops were studied who contributed information from their own experiences. The author is indebted to Prof. Horace Secrist, Director of the Bureau of Business Research, Northwestern University, for his valuable counsel and assistance in planning and guiding the^ study and in preparing the report. | STUDIES IN RETAILING OF MEAT — * Studies of the retail marketing of meat were begun by the Department of Agriculture in 1920, when a survey of agencies of distribution and methods of merchandising was begun. De¬ partment of Agriculture Bulletin No. 1317 presents results of this study. A detailed survey of the operations of retail meat dealers in independent and chain stores in Chicago, Cleveland, and New York was begun in 1923 as a cooperative project between thq Bureau of Business Research of Northwestern University and: the Bureau of Agricultural Economics of the United States,, Department of Agriculture. This bulletin is based upon that study. A survey of the influences of methods and practices, costs of retailing, and consumers’ meat-buying habits upon the market was begun in July, 1924, by the Bureau of Agricultural Eco¬ nomics of the Department of Agriculture in some 20 cities other than the three mentioned above. The results ^of this survey have been presented in two preliminary reports, the first issued in December, 1924, and the second in June, 1925. II UNITED STATES DEPARTMENT OF AGRICULTURE In Cooperation with Bureau of Business Research, Northwestern University MISCELLANEOUS CIRCULAR No. 54 Washington, D. C. ▼ October, 1925 EFFICIENT METHODS OF RETAILING MEAT By Boy C. Lindquist, Research Agent in Marketing, Bureau of Agricultural Economics Research Assistant, Bureau of Business Research, Northwestern University CONTENTS Page How to choose a location- 2 Relation to volume of business- 2 Rent of the store- 6 Four don’ts in choosing a loca¬ tion - 7 Relation of store to successful busi¬ ness - 7 Fixtures and equipment- 7 Layout of fixtures, equipment, and merchandise- 7 Sanitation_ 11 Lighting_ 13 Rules for lighting a shop- 13 Personnel and management- 14 The proprietor_ 14 Employees_ 15 Page Purchasing_ 18 Rules for efficient buying- 21 Refrigeration and care of meat- 22 Essentials in refrigerating meats- 24 Cutting of meat_ 24 Rules for cutting nu at- 26 Merchandising_ 27 Pricing policy- 27 Advertising- 30 Display_ 33 Salesmanship_ 36 Don’ts in display- 37 Rules for successful selling- 40 Meeting competition_ 40 Keeping records- . 43 The retailing of meat can be successfully carried on only on the basis of knowledge acquired through observation and study. Suc¬ cess in this, as in other activities involving social contacts, can be guaranteed only if one’s knowledge is sound and if it is acted upon. If asked to indicate briefly the outstanding characteristics of an efficient retail meat shop, a student of the question would have no hesitancy in saying: Careful and thoughtful management extending to the selection of a business location, to the training of employees, to purchasing, to the skillful cutting of meat, and to the careful and continuous effort to satisfy the demands of consumers. The shops studied in the investigations on which this publication is based were for the most part those the accounts of which for more than a year were examined by the Bureau of Business Research, Northwestern University, and the United States Department of Agriculture, Bureau of Agricultural Economics. On the basis of this study the cooperating agencies obtained definite evidence which pointed to relative success and failure, but the study was incom¬ plete. It was felt that there was a need for a careful, painstaking examination of the day-to-day operations of these stores to deter¬ mine why certain of them succeeded and others failed. It was with this thought in mind that the present study was begun of the prac- 1 2 Miscellaneous Circular 5^, U. S. Dept, of Agriculture tical operations of retail meat dealers in independent and chain- store shops in Cleveland, New York, and Chicago. Xone of the dealers can be said to be wholly inefficient or wholly efficient. Both are relative to the time, ]3lace, type of trade, and conditions of operation. Certain dealers are clearly more efficient than others, and at certain times efficient dealers are grossly inef¬ ficient. Accordingly, effort has been made to summarize the prac¬ tices which as a rule make for efficiency, and to call attention to those which in the long run prove to be inefficient. AVhat can retailers, as a class, do to improve their conditions? It seems self-evident on the basis of this and other studies that they must (1) have complete and accurate accounts of their business op¬ erations; (2) understand the art of cutting and preparing meat for the trade; (3) appreciate the significance of service; (4) be honest in their day-to-day dealings Avith customers, employees, wholesalers, and others Avith Avhom they deal; and (5) select a place for business in Avhich, potentially at least, their seiwice is required. HOW TO CHOOSE A LOCATION In the retailing of meats, as in other fields of retailing, a faA’or- able location is necessary for success. Dealers admit its importance but fcAv of them giA'e it proper attention when beginning business, AA'hen judging the A^alue of their present locations, or Avhen changing to neAv quarters. Locations are frequently chosen unAvisely, and as a result the retail meat field at places is OA^ercroAvded. If a dealer enters into competition Avith others Avho themselves are eking out a mere business existence he is sure to fail. If, on the other hand, he selects a location Avhere his serAuces are needed he may reasonably expect to succeed if, and only if, he continues to render satisfactory service. The United States Department of Agriculture has esti¬ mated that for a market to succeed it must serve at least 1,000 people. Absolute safety requires a someAAdiat larger population. The meat department of a combination store, hoAveA’er, may succeed with a smaller population. Hoav can an examination of the possibilities of a certain location— “ a market analysis,” as it is called—be made ? IVhat kinds of in¬ formation will help a dealer to judge as to the A’alue of a location for retail meat purposes? Those Avhich are most important are as follows: (1) the population and its characteristics, (2) the A’alue, kinds, and quality of meat consumed, and (3) the number of shops serving the trade. Accurate information on all of these topics is difficult to obtain, but fairly good estimates can readily be made. Be¬ cause location has so much to do Avith the success and failure of re¬ tailers, the things Avhich will help a dealer to choose a suitable place for his business are discussed in detail. RELATION TO VOLUME OF BUSINESS Xo dealer can succeed without a fair volume of business. Among the conditions determining the amount of business in a locality are the population in the immediate vicinity, outlying trade competition, population movements, class of trade, and location within the com¬ munity selected. 3 Efficient Methods of Retaiting Meat ' The Populatiox in the Immediate Vicinity The type of dwellings indicates roughly the density of population. A district consisting mostly of single residences can support only a limited number of shops. On the other hand, several shops can thrive in a similar area filled with two and three family dwellings and apartment houses. Vacant property indicates a sparse population. A district in which there are many vacant lots may offer opportunity for future trade, but is not attractive at the moment unless building construc¬ tion is active. To pay their current operating expenses, retailers must make current sales; they can rarely speculate about future profits. The size of families is also indicative of population density and consumption of meat. Where families are small purchases are lim¬ ited, restricted to few varieties of meats, and infrequent, because such people often eat at restaurants. A satisfactory estimate of the sizes of families in a given neighborhood can be ascertained by care¬ ful inquiry. Outlying Trade If, in selecting a location, the possible local trade seems inadequate for success, dealers should investigate the opportunities offered by distant trade. Information as to the trading radius surrounding a business site can be obtained from local bankers and merchants. The amount available depends upon the type of district, kind of street, and transportation facilities. A downtown business section draws trade from a wide area Avithin and beyond the city limits. But not all of this can be counted upon for an individual store. The population is free to purchase from a number of stores, and only those offering exceptional attraction get the lion’s share. An outlying shopping center draws trade from a wide territory, but must meet the competition from other centers. An area of this nature is characterized by department, clothing, and furniture stores. Such a shopping center generally has ample transportation facilities to bring people from various localities. Merely because it is a center, lioweA^er, does not guarantee that it can support an additional busi¬ ness. Outlying business districts of the ordinary type draAV trade from a limited area. As soon as population congregates in a given district, shops are immediately opened to satisfy demands for service. The stores are generally small or medium sized, the trade is local, and the population capable of supporting only a relatiA^ely few meat markets. Industrial districts containing factories and warehouses offer limited opportunities for trade. The extent to Avhich employees shop on their way to and from home is not ahvays certain, but may be determined. The number of possible customers is generally very small. Moreover, merchants should consider the employment con¬ ditions in such districts and find out Avhether they are irregular or seasonal. Some trade may be obtained from restaurants, but too great hope ought not to be })laced in such a source. It is not always necessary to locate in an industrial district itself in order to serve this trade. A near-by location may make it possible to obtain both familv and restaurant trade. 4 Miscellaneous Circular 5^, U. S. Dept, of Agriculture A residential section with side-street stores has a limited trading radius. A new store building erected in such a location is no indi¬ cation of the need for or success of another meat shop. One of the dealers whose experience was investigated thought so, but was sorely disappointed after the shop w^as opened. In most business districts one or two streets make up the main avenues of trade. Stores located on such streets get more business and draw trade from, a wider radius than stores on other streets. This fact should not be forgotten. Good transportation may mean a wide trading radius. In ap¬ praising the opportunities which it offers it is necessary, hoAvever, to consider the number and type of lines, quality of service, and the districts into and through which they extend. Elevated and sub¬ way lines bring purchasers from distant areas. Good transfer points on surface lines may produce volume for a dealer, if a location is selected which is not too far from the car stops or transfer posi¬ tions. It is essential, before purchasing a shop, to know if any recent changes in car routing have been made or if any changes are impending for the immediate future. Shops may be put on the market because of advance information on these points. If a dealer is counting on obtaining automobile trade, parking facilities should be determined. Are they adequate? Are they free? Are thev near the location which is being considered? A new community needs adequate transportation facilities for rapid development. If plans for supplying them are indefinite and doubtful, a location, although valuable for future trade, may for the time being be worth very little. Competition The number of meat shops located in a particular trading area can be counted quickly. Are there too many, or is there “ always room for one more ? ” A rough indication of the nature of the area from a trading point of view is the size of existing stores. If they are mostly one and two man shops, the chances are that the competi¬ tion is already severe. A merchant when observing those condi¬ tions should hesitate before he locates in such a district. The efficiency of shops in a possible trading district should be ex¬ amined before a location is selected. If they appear to be sufficient in number and to serve the trade well as to price, quality, and service, this area should be considered as closed so far as a place of business is concerned. If, on the other hand, present dealers are charging jirices that are too high (quality considered), if the quality handled is not suited to the demands of all or part of the trade, if courtesy and promptness in serving customers are not what they should be, or if there is need for a cash-and-carry or a credit-and-delivery market, tliere may be room for another shop. PoPur.ATiON Movements The growth or decline of jiopulation should be considered. If population is increasing rapidly a dealer may expect to share in ihe added business. If it is declining he can not always hope to re¬ tain his volume while that of others is shrinking. If a store is for Efficient Methods of Retailing Meat 5 sale and its purchase seems desirable, merchants should not act without considering the possibilities of the future. Moreover, the changing character of the population must be studied. The influx of undesirable elements may spoil business prospects. Class of Trade The class of trade to be served is always important when consider¬ ing a possible location. It may be of a different type from that to which a dealer is accustomed. Merchants as a rule can not serve distinctly different classes of trade successfully. Different methods of merchandising are required for neighborhood and transient trade. A dealer located on a shopping street may fail because he attaches too little significance to organization for such factors as rapid serv¬ ice and displays. Home owners and tenants of large apartments generally purchase meats in considerable quantity and of wide variety. Tenants of small apartments and light-housekeeping suites purchase small quan¬ tities and limited varieties (usually steaks and chops). Such fam¬ ilies often have no children, and take many of their meals in res¬ taurants. That such people do not keep house does not indicate that meat consumption is curtailed. It only means that they do not pur¬ chase from retail shops. If trade is going to restaurants, then mer¬ chants must consider the possibility of serving this type of consumer. Occupations and financial status of consumers should be considered. Working-class people buy large quantities and many varieties of meat products. Office workers, on the other hand, consume rela¬ tively small quantities and few varieties. Business and professional classes are often free spenders and consume high-grade meats, but they demand service. This generally involves credit and delivery. The purchases of the well-to-do classes are often seasonal. Most of the summer and part of the winter they may be away. If so, it will be difficult to obtain a satisfactory average volume for the year. The nationality of possible consumers should be studied when con¬ sidering a business location. Foreigners as a rule consume larger (juantities and more varieties of meats than do Americans. This is particularly true of Germans, Poles, Hungarians, Bohemians, and related peoples. Their families are larger and not so accustomed as Americans to patronizing restaurants and hotels. The religion of consumers, too, may influence their purchases. Catholic communi¬ ties, for instance, may abstain from eating meat on Fridays and fast days. Location Within the Community Selected A merchant, having satisfied himself that he wishes to locate in a community, must choose^a particular place. If two or more loca¬ tions are available, they are probably not equally desirable. In choosing between them it is advisable to consider the side of the street best suited to his needs. On one side trading may be active, on the other little business may be done. The shadier side is de¬ sirable if dealers depend to any extent upon window displays for attracting trade. Moreover, a street may form a dividing line of trade. Heavy traffic may make it difficult or hazardous to cross. The class of trade, nationality, etc., may be different for the two 0 Miscellaneous Circular 54^, U. S. Dept, of Agriculture sides. These conditions have an imj^ortant bearing upon the chances for success or failure of the prospective shop. A location close to grocery, vegetable and fruit, and bakery stores is preferable‘to one removed. A number of stores serving these different demands form a splendid business-getting combination, provided there is the proper spirit of cooperation between them. Locations near theaters are not generally desirable, because people on their Avay to and from places of amusement do not as a rule care to shop. In some cases, however, other considerations outweigh this disadvantage. RENT OF THE STORE The rent Avhich a merchant can afford to pay for a location de¬ pends upon the amount of his sales. When told the rental required, he should estimate its reasonableness in terms of his actual or prob¬ able volume. Kents are high or low not in terms of dollars per square foot but in terms of their relation to sales. The Bureau of Business Kesearch, hTortliAvestern University, found that rents for retail meat shops averaged 2 to 21/2 per cent of sales in CleA-eland, Chicago, and NeAv York. If a dealer is asked a rental of $100 a month, this means that he should do a business of $4,000 to $5,000 per month in order to operate at the aA'erage rate. A volume .smaller than this amount makes his rent above the average, a Amlume larger makes his rent loAA^er than the aA^erage. In this study many stores Avere found Avhich Avere paying from 5 to 10 per cent of their sales for rent. The proprietors either lost money or receiA^ed little more than a common-labor Avage for their services. A dealer should find out Avhat the preA^ailing rents are for stores similar to the one he is considering. He Avill then be in a better posi¬ tion to bargain with the landlord or Avith other dealers for the posi¬ tions Avhich they occupy. The suitability of the building and the size of the store haA^e an im¬ portant bearing upon a dealer’s chance for success. It is unwise to attempt to do business in cramped quarters. It is equally unwise to .select a store AAdiich is too large and inAmlves extra fixture iuA^estment, unused s])ace for which rent is paid, and lost time in waiting on trade. If expanding business is confidently expected, large quarters may be chosen; but the distant future should not be given too much consideration. The appearance of the building occupied affects trade. An ugly and dilapidated building is a poor draAving card; one that is attrac¬ tive in Antes customers. The construction of the building is important because it affects refrigeration. The type of construction, as Avell as the condition of ceiling and floor, may make proper refrigeration difficult and costly. It is desirable that rented buildings should be occupied under a lease. The term should be comparatiATl}^ short. Kents rise and fall as do the ])rices of other things, and merchants should be in a posi¬ tion to take advantage of such shifts. A period of fiA^e years is pre¬ ferred by most successful mei-chants. A lease should be definite I'e- specting the matter of re])airs, cleaning, etc. If the landlord is to bear the.se expenses, the lease should so s]Aecify; if the tenant is to assume the costs, he Avill Avant to knoAv it at the time tlie lease is taken. Provisions respecting subletting a part of tlie store should Efficient Methods of Retailing Meat 7 be unmistakable. Experience shows that such a use of vacant space is desirable. Dealers are frequently able to reduce their rent expense in this way. A joint tenancy with a dealer in fruit and vegetables is often advantageous. FOUR DON’TS IN CHOOSING A LOCATION 1. Don’t choose a location without a study of its business possi¬ bilities. 2. Don’t choose a neighborhood merely because it already contains many apparently successful shops. Appearances may be deceptive. 3. Don’t neglect to study existing competitive conditions. It is far better to reckon with competitors before than after going into business. 4. Don’t hesitate to change your location if the neighborhood has deteriorated. It is better to move early than to be forced out by failure in the end. RELATION OF STORE TO SUCCESSFUL BUSINESS FIXTURES AND EQUIPMENT The fixtures and equipment in a retail meat store should be sim¬ ple and serviceable. A large investment in elaborate fixtures is un¬ necessary 'and expensive. Fixtures depreciate rapidly, and the in¬ terest on the investment constitutes a carrying charge. The public likes to patronize a well-equipped shop, but is chefly concerned with the quality and service received for the prices paid. In selecting fixtures the following, among other things, should be considered: (1) Wearing qualities; (2) suitability to the particu¬ lar need in question; (3) appearance; and (4) the cost of installation. A retail shop should be equipped for efficient operation. Such ma¬ chines as meat slicers, cash registers, and computing scales usually contribute toward efficient operation, but it is unwise to purchase too expensive machines or those which are unsuited to particular needs. There is always a temptation for meat dealers to purchase new devices as they appear and to scrap those in use. The effectiveness of fixtures is increased by their proper care. Re¬ pairs should be made when necessary, to save greater later expense. To allow fixtures and equipment to deteriorate because of lack of repairs shortens their life. Fixtures and Equipment Needed for Two-Man Shop Ei^jht by ten foot ice box (properly insulated). Complete set of tools for each clerk. Three or four blocks. One or two computing scales. Platform scale. Ten to fifteen feet of counter space. Cash register (inexpensive). Meat chopper. Meat slicer (unless small (piaiitities of cooked meats, sliced bacon, etc., are sold). Work benches, tables, shelves, etc. LAYOUT OF FIXTURES, EQUIPMENT, AND MERCHANDISE When a store is rented and space acipiired, the fixtures and eijiiip- ment should be so arranged as to obtain the maximum working 62654°—25^ g Miscellaneous Circular 5^, U. S. Dept, of Agriculture eiiiciency. A pleasing appearance and a good display effect, although important, are secondary. An efficient layout often results in reduc¬ ing lost motion to a minimum and in making it possible to operate with less help. ’ This is an important consideration, because the wage bill is by far the most important expense the merchant has to bear. For stores with small volume, the space in front of the ice box need not be larger than the rear space. The front should not be larger than necessary to afford adequate counter facilities, free movement of clerks, and ample space for customers. A large front section occasions needless steps and makes it difficult to take care of customers during rush periods. The rear section should be large enough to permit efficient operation and to provide storage space for such things as supplies, equipment, and waste paper. Inasmuch as merchants are coming more and more to cut their meat in ad¬ vance, adequate space in the rear room must be provided for this purpose. A convenient arrangement of the counters is important. They should be arranged so that they can be seen from the door, if the entrance is at the side. An arrangement like that shown i:i Figure 1 A is good; that in Figure 1 B is bad. AYhen the entrance is in the center, the counters may be arranged on either side. The ice box should be so placed that the door is convenient to the clerks, and on the side that will make it unnecessary for them to cross each others’ paths in going to and from the box. In Fig¬ ure 1 C the arrangement is shown as it should be; in Figure 1 D, as it ought not to be. There are several different ways of placing the counters in a store, the arrangement in Figure 1 E being known as the L shape. This is rather unsatisfactory, because clerks waste considerable time going around them when waiting on trade. But if a store is narrow and much counter space is needed the L-shaped arrangement may be necessary. The method of placing the counters shown in Figure 1 F is more satisfactory, because the clerks work on the inside of the in¬ closed area and have their equipment within easy reach. So far as display effect is concerned, however, the arrangement in Figure 1 F is not so satisfactory as that in Figure 1 E. Such an arrangement as that shown in Figure 1 G makes for greater efficiency in serving customers than that shown in Figure 1 H, and can be used in the same width of store. In laying out counters in keeping with the positions shown in Figures 1 B and 1 E merchants should be careful to provide for adequate space between the ice box and the counter parallel to the box. If this is not done working space will be cramped and service retarded. Scales, blocks, wrapping ^^aper, and the cash register should be placed conveniently because they are used together. One dealer whose store was inspected had them placed as shown in Figure 11, ^lost of the work was performed at the counter near the ice box, and the register and paper were placed on the other side. Scales should be located so that customers may see the dials. A convenient position for them is on the counter or counters where the main service is rendered. Efficient Methods of Retaiting Meat 9 Counters B XCounters ¥( Office J F|g. 1,—Several plans for the arrangement of counters, ice box, ^tQ, 10 Miscellaneous Circular ok, U. S. Dept, of Agriculture The cashier’s office should be so located as to command a good view of the store and of customers as they come in and go out. The best place is opposite the corner of the counter, as shown in Figure 1 J. If possible, the WORK BENCH STAIRCASE • SINK LAVATORY r'* — ICE MACHINE k- office: SAFE jv^NDOiil / ICE BOX Q’x/0' telephone ADDING MACHI NE o KRAUT BARREL a MEAT CHOPPER BLOCK BLOCK [I^ LARGE BLOCK CASH REGISTER MEAT SLICER SCALE WRAPPING PAPER ROLL TABLE k U. «0 <0 k u. o ! \ SCALE WRAPPING COUNTER 16 FT. REFRIGERATED COUNTER k k DISPLAY SHELF (BOTTLED GOODS) SPACE FOR CUSTOMERS k k o> office should be on the same side as the door. This makes it easy for the cashier x, to guard against cus¬ tomers leaving the store without paying for their purchases. The meat grinder should be conveni¬ ently located and in full view of the trade. It should not be hid¬ den from customers, because if it is they may suspect the mer¬ chant of substituting other meat for that which was ordered. The confidence of cus¬ tomers is one of the greatest assets of a merchant, and noth¬ ing should be done to destroy it. The layout of the fixtures and equip¬ ment as shown in Figure 2 is excellent. The clerks work effi¬ ciently, because every¬ thing is placed within easy reach and no un- X/ necessary^ steps are re¬ quired. The arrange¬ ment is comparatively new. Before the change was made the front of the store was much larger, the ice box then being placed at the rear line of the box, as indicated in the illustration. The proprietor finds the new arrangement much more serviceable, because formerly much time was wasted in going to and from the cooler. Although the counter is much nearer the front than formerly, there is still ample room for trade. This merchant does a business of $1,200 SHOW WINDOW T TT k k t: L Fig. 2.—Floor plan of a well-arranged shop Efficient Methods of Retailing Meat 11 per week with the help of one experienced clerk and a delivery boy. Two-thirds of his trade is cash-and-carry. Much of his success he attributes to his layout. Items that need cutting and trimming, and those brought in and out of the cooler, should be placed on the counter nearest to the ice box and blocks. Cut meats, sausage, cooked meats, etc., can be laid out on the other counter or counters. IVIeats that sell in large quantities and move rapidly should be conveniently located. As a rule they should be placed near the scales and in the direct line of the clerks’ major activity. Although the number of items sold by retail meat dealers is com¬ paratively few—much fewer than in many other types of retail trade—it is desirable that each type of meat should be kept in a cus¬ tomary place. If this is done clerks can locate the merchandise quickly. Customers will come to appreciate such an arrangement, because they will know where to look for the types of meat they de¬ sire. Such an arrangement makes for order and avoids the practice, too often indulged in by merchants, of piling meats carelessly and haphazardly on blocks and counters, which not only gives a bad appearance but makes it difficult for clerks quickly to find the piece of meat desired. The ice box should be arranged so that each kind of meat—lamb, veal, pork, and beef—has its own particular section. AYhen the volume is large such an arrangement can be carried out in greater detail if separate departments of the ice box are assigned to beef ribs, beef rounds, pork loins, fresh hams, etc. Under such conditions overbuying will not be indulged in and time will not be lost in searching about for the articles wanted. As new purchases are added to the stocks of meat on hand many dealers follow the practice of hanging them in the rear, back of the old stock. With this arrangement the old stock is moved first, the clerks knowing the order in which pieces should be taken out. Such an arrangement tends to keep the stock fresh and reduces trimming to a minimum. An orderly arrangement of meats in the cooler saves space. For the same reason meats should be hung on the edge rather than on the side. In hanging sides of veal some dealers separate right from left sides, place old stock in the center and new stock on the right and left ends. SANITATION With modern demands of consumers, city inspection, and the in¬ sistence upon service, sanitation in retail meat markets requires the attention of every progressive merchant. There are customers who consider sanitary conditions in and about a shop fully as important or more so than the price they pay for meat. Frequent cleaning is necessary if a market is to be sanitary. This applies to equipment, tools, and fixtures, as. well as to the permanent parts of the shop itself. The floors should be frequently swept and sawdust changed at least every two days. If this is done it prevents the accumulation of bone dust, meat scraps, etc., Avhich decay quickly and cause obnoxious odors. If paper and boxes are allowed to accumulate back of the counters they ]:)resent a very untidy a})pearance and make it impossible to give proper attention to the floors. 12 Miscellaneous Circular 54, U. S. Dept, of Agriculture To keep the ice box, including rails, hooks, walls, and floors, clean requires constant attention. Washing and scalding meat hooks add to their life and make frequent retinning unnecessary. Tainted meats should not be allowed to remain in the cooler. If they are, fresh meats will be affected. Some one in the shop should be made responsible for seeing that the condition of the ice box is satis¬ factory. This should be a regular part of his activity, and should be closely watched by the proprietor himself. The bottoms of counters should be kept free from waste paper and rubbish. Small particles of meat accumulating inside the counter should be removed. Blocks should be scraped frequently during the day. In hot weather they should be kept as free of meat as possible. Care in this respect is important. During the summer months some dealers keep their blocks sweet and clean by sprinkling them with baking soda, or salt, and cleaning this off each morning before opening for business. The rear room of the store, in spite of the fact that many dealers seem to think otherwise, is an important part of the market. In¬ efficient, slovenly merchants ignore this fact; successful ones give it proper attention. To allow rubbish to accumulate, to neglect to wash cooking utensils and dinner dishes, and to let offal and feathers from chickens accumulate are bad practices. Even though the front of the store is kept sanitary, flies will swarm into the shop if the rear room is insanitary. A disorderly and unclean rear room prevents workmen from efficiently carrying on work which must be performed there. The question which each merchant must ask him¬ self is, “What would my customers say if they saw this rear room?” The walls of the shop should be kept clean. To enamel them in white is inexpensive and permits easy and quick cleaning. The habits of clerks in retail meat shops have a direct bearing on successful merchandising. They should not be permitted to smoke in the presence of customers. Tobacco chewing and expectorating are habits Avhich no proprietor should tolerate. Aprons and frocks should be changed frequently. To save on laundry bills by using dirty linen is false economy. Shop clothes should be neat, and it goes without saying that the hands of the clerks should be clean. Twine chewing is a habit difficult to break, but it is distasteful to most customers and should be prevented if possible. The killing and dressing of j^oultry ought to be carried on in out¬ side buildings or in basements if outside buildings are not available. Coo 2 )s should not be allowed on the sidewalk. Many dealers have ceased to dress poultry, maintaining that they can buy dressed poultry as cheaply as live poultry if proper allowance is made for the time taken in killing, cost of feeding, shrinkage, and deaths of birds. The claim is made, probably with truth, that poultry-dress¬ ing firms have superior methods of chilling poultry and of pre¬ serving it. Meat shops should be well ventilated. Doors and windows should be kept open as much as ]:)ossible, and if necessary fans should be used to assure proper ventilation. Cats, if necessary to rid a shop of rats and mice, should be kept out of sight. It is distasteful to many customers to see a cat wandering about a meat store. Efficient Methods of Retailing Meat 13 Proper screening of doors and windows, cleanliness, and the elimi¬ nation of odors are the most effective methods against flies. The l^ractice of spreading fly powder and paper about the shop is help¬ ful, but inadequate. Meats can best be protected from dust by using glass guards on the counters or inclosed counters. These will prevent customers from handling meats, a practice which should never be allowed. LIGHTING A necessary condition for the successful operation of a retail meat shop is proper lighting. It is conducive to efficiency, reduces the number of mistakes in weighing, cutting, and pricing meat, and generally makes for the health of all concerned. Moreover, a well- lighted shop attracts trade. The expense of lighting is relatively small—0.25 per cent of sales, as shown by the study of the Bureau of Business Research, Northwestern University. In spite of this fact some dealers pay more attention to reducing their light bills than to keeping their Avage expense Avithin proper limits. If a store is well lighted all parts are diffused Avith light. Even illumination may be obtained by the use of diffusing types of shades and globes. These spread light uniformly in all directions. Shades Avhich reflect light downAvard make the upper part of a store dark. This gives a shop a gloomy appearance from the outside, is hard on the eyes of the workmen, and makes for inefficiency. To get the best effects from artificial lighting the walls and ceilings should be light-colored. Dark tints cause glaring contrasts and are not nearly so pleasing as white enamel. The parts of the store that demand the most careful attention, so far as lighting is concerned, are the scales and the counters. If clerks have difficulty in reading the scale costly mistakes are likely. Lights should be so placed that the rays fall directly on the scale dial. It is a common practice for dealers to use scales containing individual lights. These are very satisfactory. Counters should be well lighted to display their contents ad¬ vantageously. Meats under good lights ahvays appear at their best. If droplights are used they should be placed so that shadows will not appear inside the counters. Good illumination is obtained by lights j)laced inside counters, but the results are bad because they quickly dry out cut meats and raise the temperature seA^eral degrees. Artificial light is a poor substitute for the sun. When it is neces¬ sary to use artificial lights in windoAvs those types should be se¬ lected which best display the products. For this purpose reflector liglits generally prove most satisfactory. If they are placed in the upper front of the windoAv they light up the display and at the same time do not cause a glare in the eyes of passers-by. RULES FOR LIGHTING A SHOP 1. Lights should shine on the objects and not in the eyes of clerks. 2. Diffusing glass globes, reflectors, or shades should be used. 3. Reflection from polished surfaces should be avoided. 4. Excessive as Avell as inadequate illumination strains and fatigues the eyes. 14 Miscellaneous Circular 54, U. S. Dept, of Agriculture 5. Dark walls and ceilings should be avoided. G. Light from windows should be utilized to the fullest extent. 7. Unsteady and flickering lights should not be used. PERSONNEL AND MANAGEMENT The secret of business success lies in efficient management. The personnel of the shop is also imj^ortant. THE PROPRIETOR An efficient proprietor of a store is a student of his business. He reads the journals and other literature on his trade. He does not hesitate to change his ways when improvements are suggested. He tries out new ideas; he is progressive. He makes frequent tests on different kinds of meats handled; he knows the cost of his merchan¬ dise and the margins at which it can be sold profitably; he visits other stores and studies their methods Avith the hope of obtaining A^aluable suggestions; he adopts a professional attitude toAvard his business, and aims to become a real merchant rather than a mere butcher. A meat retailer Avho Avishes to be successful Avill maintain a cheer¬ ful attitude toAvard his trade and clerks and control his temper. He belieA^es in and acts upon the principle that “Honesty is the best policy.” If a business is Avorth conducting it should be given atten¬ tion. To do otherAvise is costly in the end, although it may not ap¬ pear to be from day to day. Close attention to the daily run of busi¬ ness problems is impossible if time is frittered aAvay through aimless actiAuties, pleasing in themselves, but not conducive to success. Com¬ petition requires that dealers be on the lookout for positions and methods of advantage. If a merchant disregards this self-eAudent fact, his competitor may not. The results Avill soon be apparent; Some of the practices that the merchant should not indulge in are the folloAving: (1) GiAung business problems only occasional atten¬ tion; (2) arriving at business late in the mornings, thus setting a bad example for clerks; (3) absenting himself from the shop during the day for long periods of time; (4) spending more time at the Avholesale markets Avhen buying than is necessary; (5) performing day-to-day tasks Avithout a plan of the details and an appreciation of their relative importance in the job of a manager. Most businesses Avhen begun are small. If they are successful groAvth is natural. In expanding a business a dealer should feel his Avay, testing out so far as possible the probable effect of each neAV moA^e. A retail meat dealer is not only a business man but a citizen of his community. The interest he takes in ])ublic affairs may help him to succeed. Every business man has his ])ublic res})onsibilities, but his business duties should not be sacrificed to public ends. In some instances the best service a man can render his community is in operating a successful business. lietail meat shops are sometimes ojierated by a partnership. If this form of oAvnership is to be successful it is necessary that there be (1) complete haiunony betAveen the jiartners, and (2) good teaniAvork. Loth are difficult to maintain; caution is therefore to be obserA^d Efficient Methods of Retailing Meat 15 when entering into a partnership. A clear division of duties is desirable, and the job of each partner should be clearly distinguished and understood. For instance, buying may be done by one and the handling of finances, books, etc., by tlie other. On the other hand, a business can not be run as a unit unless partners fully cooperate. Neither should refuse to do his full share toward making the shop a success merely because certain duties and a division of responsi¬ bility have been assigned to him for convenience of operation. EMPLOYEES There is no other expense item in the operation of a store which is as large as the w^age bill. Everything should therefore be done to economize in this respect and to make every dollar paid for wages produce an adequate return. Neither a low nor a high wage rate in and of itself is desirable. AVhat should be striven for is a productive wage—one high enough to procure efficient help and to insure loyalty and service on the part of those to whom it is paid. A study of the operating expenses of shops in the metropolitan districts of Chicago, Cleveland, and New York showed that the wage bill, including reasonable wages for the proprietor and members of his family employed in the shop, constitutes approximately 12 to 13 j^er cent of sales, or about G6 per cent of the total operating expense. This represents the general experience, from which there are differ¬ ences, depending upon the size of the shop, the effectiveness of man¬ agement, and the type of service rendered. Cash-and-carry shops were visited in which the wage expense was T to 10 per cent of sales. On the other hand, other shops of the same type paid as much as 15 to 20 per cent in the form of wages. Similar differences in operat¬ ing expense, so far as wages are concerned, were obserA'ed in credit- and-deliA’ery shops, the more efficient ones oj^erating with a Avage expense of 10 to 13 per cent, the less efficient ones at 15 to 20 per cent. The payment of wages should be made in accordance Avith service rendered. It is a mistaken policy to ])ay the same amount to clerks of Avidely different experience and training. Ability, experience, and interest in the operations of the store should be the guiding principle in fixing a scale of payment. Successful merchants, it Avas found, do not pay their help the same rate regardless of their A^alue to the business. A flat Avage rate, moreover, rarely secures the most efficient service from those to Avhom it is paid. Experience has demonstrated the advisability of paying to managers and head clerks some form of extra compensation to stimulate their best efforts and to enlist their interest in the business. Such extra jAayments should be a percent¬ age based upon net profits rather than upon sales. If the payment is based on sales employees may be interested in the sales themselves rather than in the profit they bring to the business. The sales which are easily made and upon Avhich the margin is small may receiA^e their chief attention. They may be Avasteful in cutting and trim¬ ming meat. If extra compensation is based upon net profits em- 2 :)loyes are more likely to keep the interests of the entire shop in mind. If this is done they should be instructed in the methods 62G54°—25-3 10 Miscellaneous Circular 54, U. S. Dept, of Agriculture which are used to compute profits and in the importance of economy of operation. Dealers frequently find it advisable to "ive to managers and head clerks an interest in their business. This is especially common when dealers operate more than one store. If a manager has a share in the firm he is likely to take an interest in the operation of the shop, to give his best service, and to Tvork closely in cooperation with the proprietor. The sympathy and cooperation of employees are often obtained by proprietors who show an interest in their welfare. This may take a variety of forms, such as (1) making them presents at Christ¬ mas time, (2) giving them an annual vacation with pay of at least one week, and (3) giving them an afternoon off each week to com¬ pensate for working Saturday afternoons and evenings. Other similar methods are frequently found helpful in developing a well- operated shop. No shop can be run efficiently without (1) a plan of operation, and (2) the assignment of duties in keeping with it. Employees have different capacities and skill. Work should be so distributed that each does the task for which he is best suited. It is wasteful to have a skilled employee spend his time in doing routine tasks. In the study of conditions in New York, Chicago, and Cleveland many cases were observed where high-grade clerks were delivering orders while delivery boys, hired for this purpose, were in the store. Such a condition could come about only through mismanagement and failure to plan work in advance. A fundamental principle of planning work in a meat shop is to reduce to a minimum the idle time of employees. There are several ways to accomplish this end: (1) If sales are concentrated within certain hours of the day clerks may be used to cut and prepare meats in advance; to do this may make it possible to operate without extra help within such hours; (2) the otherwise idle time of clerks may be used in such work as keeping the .shop in order, preparing display material, and making sausage and cooked meats. To utilize employees’ time fully it is necessary that work be planned in advance. If delivery service is rendered this type of trade should be systematized, the orders secured in advance, and deliveries made at regular intervals rather than haphazardly. It is wasteful to send small orders singly or to cover the same territory several times during the day. So far as possible, the shop shoidd b? made a comfortable place in which to work. If it is too cold in the winter months clerks can not work efficiently. Moreover, a cold shop is not attractive to trade, es- ])ecially if the service is slow and it is necessary for customers to wait. A well-managed shop should have adequate help for the business it attracts. It should be neither over nor under manned. But be¬ cause of the nature of the .service rendered, which is demanded at certain hours of tlie day rather than b?ing distributed evenly, extra help is often required. What is a test of the necessity for an additional employee ? A full¬ time clerk should sell each week between $100 and $500 worth of meat in order to make it profitable for an employer to keep him on the pay roll. Without skillful management clerks will not average Efficient Methods of Retailing Meat 17 sales of these amounts. If work is not well planned, duties clearly defined, and operation supervised, much of the time of employees will be unproductive. To guard against such employment the con¬ stant attention of the proprietor is required. In choosing employees merchants should be governed by the fol¬ lowing simple rule: Men should not be hired until a proprietor is sure of their ability, experience, honesty, and suitability to the par¬ ticular tasks required of them. This is a matter to which the efficient manager gives careful attention. It is costly to displace men and to train new employees. When a satisfactory man is obtained every effort should be made to retain him. In the training of employees the following, among other things, should be emphasized: (1) Effect of wasteful cutting and trimming meat; (2) the necessity of courtesy to customers and ruinous effects of showing preference to certain favored customers; (3) importance of reading the scale accurately and the consequence of dropping off odd amounts in order to quote sales in round numbers or even money; (4) ill effects of objectionable personal habits and the drawing power of courtesy and a pleasing manner. Employees should be treated by the manager with the same cour¬ tesy that he extends to the trade and which he expects his employees to render to those whom they serve. If a clerk makes a mistake he should be corrected in a tactful way, and the nature of his error clearly pointed out. He should not be abused or browbeaten. Any such criticism should be deferred until customers are out of the shop. Business is often stimulated not alone by advertising, price con¬ cessions, etc., but by the enthusiastic support and loyalty of the clerks. This may be assured (1) by instructing them in the prices and nutritive value of meat, and (2) by telling them the invoice prices of merchandise, changes in market prices, and total expenses of operation. If this is done sales will tend to grow, meats which are more profitable will be disposed of, and slow cuts will be moved more rapidly. For a manager to think of the business which his clerks are helping him to carry on as his is a mistaken policy. It leads to a certain amount of suspicion on the part of the clerks, in¬ difference to the difficulties which must be overcome, and ultimately to the loss of employees. A rapid turnover of help is expensive, no matter to what cause it may be due. If stores are large or several shops are operated by a manager, it is found to be desirable to hold sales meetings occasionally. At such meetings the experiences of the different salesmen may be learned and the proprietor given an opportunity to discuss with his employees trade conditions and demands and to receive from them suggestions for the improvement of the business. Such meet¬ ings may be used profitably for instruction in cutting, in methods of procuring new business, and in ways in Avhich to meet com¬ petition. Every intelligent manager, in the conduct of his business, should ask himself the following questions: (1) Am I, as owner and man¬ ager, earning the wages which I take out of the business? (2) Am I paying myself for services not rendered? (3) Can I, througli more efficient management, do the things for which I am paying others? (4) Is the time of my labor force productively employed 18 Miscellaneous Circular 5^, U. S. Dept, of Agriculture or is a large part of it Avasted? (5) Am I employing an expensive man Avhere an inexpensiA^e man AAmuld do as Avell? (6) HaA^e I distributed the duties of my labor force according to their value and AA^ages received? (7) Is my labor force too large for the busi¬ ness Avhich I do? (8) If I can not reduce my labor force, can I so stimulate sales as to utilize productiA^ely their full time? (9) Do the Avages Avhich I pay myself and labor force take so much out of each dollar of sales that I can not successfully compete Avith my neighbors? (10) Some of my competitors are doing business at a loAver Avage cost. Why ? PURCHASING A retailer serves in tAvo capacities: ( 1 ) As a purchaser of goods from the Avholesaler or packer and (2) as a seller of goods to the consumer. If goods are Avell purchased they are half sold. A dealer’s gross operating margin depends in part upon the price he pa 3 ^s for his merchandise. If its cost to him is relatively small, his margin is relatively large Avith a giA^en retail selling price. Too much attention, therefore, can not be giA^en by retailers to the pur¬ chasing of the commodities they later AAUsh to sell. Retail meat dealers in the larger cities folloAV tAvo general methods of buying: (1) Personally Ausiting the AAdiolesale markets or pack¬ ers’ salesrooms and selecting the merchandise Avhich they need or (2) purchasing through salesmen directly or by the use of the tele¬ phone. Each method has certain advantages and certain disad- A^antages. Since meats are not uniform in quality and are ungraded, inspection before buying or confidence of the dealer in the sales¬ man’s description of the merchandise is necessary. Purchasing by personal Ausits to Avholesale markets seems to be desirable (1) AAdien large quantities of meat are needed; (2) AAdien cheaper grades are desired—retailers serving as “ clean-up ” men for packers or Avholesalers; (3) Avhen merchants have expert knoAvl- edge of the different grades and A^alue of meat and can therefore choose Avisely; and (4) Avhen retail shop management is so efficient that repeated absences of the proprietor from the shop do not inter¬ fere Avith business operations. On the other hand, purchasing by inspection at Avholesale markets has certain disadvantages. Retailers as a rule are not so skilled in judging meats as are packers’ salesmen. The latter naturally attempt to obtain the highest price possible, and the aA’^erage retailer is at a disadvantage Avhen bargaining Avith them OA^er quality and price. Many retail dealers pride themseh^s on being shreAvd buyers (“sharpshooters” or “graA^ediggers,” as they call themseh^es), but such shreAvdness is only relative, the chances being that any cleA^er- ness Avhich retailers may liave is more than met by that of salesmen. MoreoA’er, retailers as a rule are not Avell A^ersed in market conditions, do not knoAv the prices offered by other retailers for a given quality and type of meat, and in some instances may bid too high and pay unnecessarily high prices. There is a temptation to the shopper to OA’erbuy, unsuitable grades being ])urchased because of price in¬ ducements, real or imaginary. For retailers to give a i)art of the day at least tAvo or three times a Aveek to personal Ausits to Avholesale markets to make their pur- Efficient Methods of Retailing Meat 19 chases takes them away from their shops and diverts their attention from the selling side of their business. They are generally successful in proportion as they give close attention to the detail of store operations. While they are purchasing in person the following, among other things, may occur in the store: (1) Clerks may steal cash or merchandise, mak^ price concessions, or actually give away merchandise to certain favored customers; and (2) clerks may be dis¬ courteous to the trade and waste their time, thus failing to render efficient service and ultimately, possibly, drive away trade. If meat is improperly cut parts are left over which are difficult to dispose of at a profit, spoilage and trimming are excessive, and cuts will not be sold in their proper order. If this happens whatever saving in price the manager may hope to obtain by shopping at the markets may be more than offset. After closely studying his pur¬ chasing problems, if a retailer decides that it is necessary for him to visit Avholesale markets the time so used should be kept at a mini¬ mum. He should compare, as nearly as he can, the advantages which come from such a practice with those which may be secured by pur¬ chasing through salesmen or by telephone. Purchasing through salesmen or by telephone seems to be advan¬ tageous (1) when small quantities of merchandise are bought, (2) when only the better grades of meat are handled, and (3) when the dealer has only a fair knowledge of grades and values. Good and choice grades of meat constitute only about 22 per cent of the total supply. Demand for these is always great. Naturally, it is a practice of packers and wholesalers to favor their regular customers with such merchandise. If a retailer has shown confi¬ dence in a packer and regularly telephones his orders, or purchases direct from salesmen, he can expect to receive consideration in his purchases. Dealers who give their orders to salesmen directly or purchase by telephone will receive favorable consideration largely in proportion as they (1) maintain pleasant and businesslike relations with their wholesalers; (2) treat them honestly and fairly in every way; (3) give them to understand that merchandise unsuitable in either price or quality Avill be immediately returned; (4) pay their bills promptly; (5) keep in close touch with changing prices and market conditions; and (6) concentrate their purchases. Wholesalers of meat products actively compete with each other for the trade of retail shops. Merchants are constantly under the temptation to scatter their purchases. To buy intelligently a re¬ tailer should buy from wholesalers and packers Avho handle the particular type of merchandise his trade demands. As a retailer expects the consumer to choose carefully between the different mar¬ kets which he may patronize, so he himself should make his pur¬ chases under the conditions which are most advantageous. He should avoid becoming dependent upon small ]:>eddlers of meat and upon wholesalers who make it their practice freely to grant him credit. Such treatment in the end is expensive. It costs the wholesaler money to render tliis type of service, and a })rice for it must ulti¬ mately be charged. As soon as a i*etailer has become obligated to a wholesale distributor he is not free to buy as he chooses but must pay the prices asked. On the other hand, however, peddlers some- 20 Miscellaneous Circular 54, U. S. Dept, of Agriculture times are able to render especially quick service for such merchandise as pork products, livers, brains, or special cuts of beef, lamb, veal, etc. There is no single principle by which a retailer may judge as to (he number of wholesalers from whom he should buv. The whole- saler who receives onlv a small share of a merchant’s orders at infre- quent intervals can not extend to him favored treatment as to price, quality, and service. The wholesaler in this respect takes the same attitude toward the retailer that the retailer does toward the con¬ sumer. There are certain advantages in patronizing a limited number of houses. Among these are (1) price concessions, (2) suitable quality, and (3) adequate seiwice. Moreover, if a wholesaler regularly sup¬ plies the needs of a retail merchant he can anticipate his require¬ ments, extend to him Ioav prices because of quantity purchases, and make an effort to procure the desired grade of meat. In times of scarcity regular customers ahvays get preference over irregular ones. The wholesaler may be of distinct service in times of financial difficulty in extending to his regular customers the necessary credit to tide them over difficult periods. Equally as important as the method of buying and the types and number of packers from which purchases are made is the kind of meat purchased. This should be suitable to the demands of the trade. Only those types of products should be bought for which there is a demand. IVhen the demand is known then the problem of purchasing is simplified, provided the proper qualities and types are available. Meats should be purchased which, when cooked, haA’e the flavor and tenderness that satisfy customers. Meats are cooked for more or less customary periods of time, and if such cooking does not make the products palatable the retailer’s trade suffers. If inferior grades which require longer cooking are sold complaints are bound to occur. The best way to forestall complaints is to prevent them from arising. Carcasses of meat differ materially as to quantity of fat and bone; and if purchases are made without these facts being considered, wastes in products and possibly loss of trade will result. Demands of the trade determine in part, at least, the weight which should be pur¬ chased. If customers demand steaks, roasts, and chops of a certain size, carcasses should be purchased which will satisfy them. A dealer who can purchase whole carcasses is usually able to buy at a some¬ what cheaper price and to secure a profitable margin without having to [)rice the choicer cuts too high. The merchant who bine's in addi¬ tion extra cuts of the less-demanded parts has a still greater ad¬ vantage. Such types of merchandise as smoked meats and package goods are sold under advertised brands. Consumers are familiar with such l)roducts and frequently ask for them by name. If possible, mer¬ chants should antici])ate these wishes of customers and make every effort to obtain the desired types. If this is done turnover of mer¬ chandise is increased and consequently the profit on investment en¬ hanced. A rapid turnover is essential to success. It insures that meats will be sold while fresh and that smoked meats and i:)ackage goods will be Efficient Methods of Retailing Meat 21 rapidly moved from the shelves. It is secured with a given volume of sales by keeping at a minimum the stocks of merchandise held, or with a given stock of merchandise by increasing sales. Over¬ stocking is an evil which should be avoided at all cost. Excessive stocks result in shrinking, spoilage, waste, trimming, and price sacri¬ fices to prevent loss. The only sure corrective for overpurchasing is a knowledge of stocks on hand and of trade demands. Merchants should make a turnover of fresh meats at least every three days. They can not do this if they buy Avithout a knoAvledge of their inven¬ tories and of demands. lYhen meat is purchased retail dealers should in every case re¬ weigh it and check the invoice price. Wholesalers as a class are un¬ doubtedly honest. They do not intentionally OA^erweigh or incor¬ rectly state the quantity of merchandise delivered, but mistakes will occur, and it is only common sense for a retailer to make certain that the quantity paid for is the same as that received. It seems to be the practice in Chicago, Cleveland, and NeAv York, Avhen meat is purchased on credit to pay for it Aveekly. Not infre¬ quently, howeA^er, a cash basis is used in the belief that price conces¬ sions are giAxn; but credit is as satisfactory as cash, pro Added bills are paid promptly Avhen due. Many dealers are careless in paying their bills, letting them run several days after they are due. Those who are habitually sIoav are either put on a C. O. D. basis or pay higher prices for their merchandise. Merchants should aAmid excessiA^e dickering about prices. Such a practice is objectionable and Avholesalers anticipate it and fix their price at such a figure that it Avill be acceptable to them after con¬ cessions asked for are granted. Merchandise should not be purchased in large quantities in the expectation of price increases, but the mar- kst should not be ignored. Careful buyers study it thoroughly and price their merchandise as nearly as possible in keeping Avith the general trend. Retailers should know the general market conditions of meat products. Information of this character may be obtained from a number of sources. Prices are quoted in neAvspapers and the trade press, and valuable information on grades of meat, receipts of liA^e- stock, stocks on farms, and general conditions of demand is supplied by the Daily Market NeAvs Service, maintained by the United States Department of Agriculture. This can be obtained free by Avriting the Department of Agriculture. RULES FOR EFFICIENT BUYING 1. Purchase merchandise Avhich is suited to demands of customers and do not substitute inferior grades. 2. Buy (quantities to meet consumers’ needs and keep in mind the relation of purchases to turnover. 3. Buy at prices as low as jiossible, but remember that price is only one of the factors that affect the margins of profitable merchan¬ dising. 4. Cultivate friendly relations Avith AAdiolesalers and packers. It pays. 5. Keeq:) to a minimum the amount of time spent in buying. A shop demands the utmost attention to details. 22 Miscellaneous Circular 5^/^, U. S. Dept, of Agriculture 6. Don’t overstock. 7. Don’t scatter purchases among too many houses. 8. Don’t neglect prompt payment of bills. REFRIGERATION AND CARE OF MEAT Retail meat dealers handle perishable products for the most part. Accordingly, if the products are not properly refrigerated or moved rapidly loss results. Dealers’ total margins are made up of the dif¬ ference between the cost and sales value of articles sold. As a rule those who care for their meat efficiently have higher margins than those who are careless about this matter. In the minds of some dealers it is the cost price only Avhich determines margins. This point of view is incorrect. Cost is one of the factors, but only one, by which margins are controlled. Sales are equally important, and these are directly related to the refrigeration and care of the prod¬ ucts sold. For refrigeration a temperature of 34 to 38° F. is the most satis¬ factory. The temperature should be kept as nearly uniform as pos¬ sible, since fluctuations are damaging. Too much moisture in the air causes molds to appear and meat to spoil rapidly; on the other hand, too dry an atmosphere causes shrinkage and drying out. Proper circulation is necessary to reduce the moisture and remove odors. Both ice and mechanical methods are used to refrigerate meat. In general the latter proves the more satisfactory. The loAvest tem¬ perature usually produced by ice in hot weather in the average box is about 45° F. In some cases 40° or lower may be obtained, but only when boxes are unusually Avell constructed and the conditions of the building are favorable. It is difficult to obtain an even tem¬ perature by the use of ice. The frequent opening and the poor fitting of doors when ice is used cause the temperature inside of the box to fluctuate several degrees. Moreover, when this method of refrigeration is used it is difficult, if not impossible, to avoid ex¬ cessive moisture and to provide for the absorption of that given off by meat. Dealers who use ice find it necessary to trim their prod¬ ucts because of the molds produced. The use of unslacked lime helps to reduce the moisture, but it is not entirelv satisfactory for this purpose. Again, air circulation in an ice-cooled box is not so satisfactoiy as in one cooled by mechanical methods. Poor circu¬ lation causes spoilage and consecpiently occasions waste. Conditions essential to ])roper refrigeration are in general easier to secure when mechanical refrigeration is used. Almost any de¬ sired tem})eratiire can be I'eached and maintained. Low-tempera¬ ture cooling surfaces readily take up excess moisture and keep im¬ purities in a frozen condition. The cooling surfaces draw warm air to them and set up circulation in the box. In addition to these advantages, mechanical refrigeration permits the aging of meat when demanded and eliminates the inconvenience of handling ice. On the other hand, this method of refrigeration is more likely than is the use of ice to produce cro.ss currents of air, thus causing moist¬ ure to collect on the walls of the cooler and on the meats themselves. In selecting an ice machine the following points should be con¬ sidered ; Efficient Methods of Retailing Meat 23 1. The capacity of the machine should be sufficient to give proper refrigeration. A machine which is too small will be unsatisfactory; one which is too large is unnecessary and expensive. Expert advice as to the type of machine necessary in a particular case can be ob¬ tained by proper inquiry. 2. A model should be chosen which has proved satisfactory. 3. Arrangements should be made with those from whom a machine is purchased to make necessary repairs and to keep it in order. 4. A machine should not be purchased until the dealer is sure that the building is to be occupied a sufficient time to justify installation. 5. Although it is generally true that the actual expense of refrig¬ eration by machine (including depreciation and interest on invest¬ ment as well as other expenses) is greater than refrigeration by ice, yet the former seems to be the less expensive in the end. For shops depending upon counter display of fresh and cut meats refrigerated cases are necessary in hot weather. They have advantages in that they (1) permit the display of meat in wholesome condition; (2) save the time of help in Tvaiting on the trade; (3) protect meat from flies, dust, etc.; (4) increase the sales of all cuts, including those which move slowly; and (5) make it possible to display meats cut in advance for rush-hour trade. There are two general types of refrigerated cases—the service counter and the storage counter. The first is suitable to shops that cut meat in advance and when sales are made direct from the case. A low temperature is not needed in such a counter, because meats are turned over rapidly. If used it should be so constructed as to permit quick cleaning and rapid work. The storage counter, because of its heavy doors, slows up operation and is frequently difficult to clean, but has the advantage of saving the time of clerks, because meats can be taken out and cut on the counter, thus reducing the trips to the ice box. It may be used as an extra cooler and for display of whole cuts, such as legs of lamb, pork loins, ribs, chucks, and poultry, because any desired tem¬ perature can be maintained. Too dry air should be avoided in refrigeration counters, because it dries out and turns meats dark. In this form thev are unattrac- A/ tive to the trade. When fresh meats are received they should be put in the refrig¬ erator at once. If they are allowed to hang about the shop for some time after delivery, unnecessary shrinkage and spoilage result, and they are less attractive in appearance. Bloody and other parts Avhich spoil quickly must be washed and cut off immediately. The parts of the carcass that spoil quickly are beef and veal necks, skirts, flaps, hanging tenders, flanks, strips of beef under chine bone, etc. When fresh these parts are salable in the form of sausage, hamburger, etc. Meat should be carefully hung. If attention is given to this matter, unnecessary tearing, rapid decay, sliding, and stretching out of shape are prevented. Efficient dealers, when possible, follow the practice of hanging meats by the rib. This is almost alwa 3 ^s done with loins and fore-cpiarter cuts. Some dealers prefer not to hang but to lay rounds on boxes and benches. If this is done they should not be allowed to lie on the cut surface, because this causes 24 Miscellaneous Circular 54 , U. S. Dept, of Agriculture meat to darken. Cuts which require the greatest care in handling are veal shoulders and beef chucks. These quickly stretch out of shape unless they are hung by the ribs. Meats should be placed so that they will not injure each other. Salted and smoked meats darken fresh cuts which they- touch and lamb flavors them. Tainted pieces should not be allowed to remain in the box. ESSENTIALS IN REFRIGERATING MEATS 1. Keep refrigerators at low and uniform temperatures, the air fairly dry and freely circulating. 2. Put fresh meats under refrigeration at once. 3. Trim off from the carcass immediately the parts that spoil quickly. 4. Use care in hanging and placing meats in the ice box. CUTTING OF MEAT The cutting of meat is a skilled operation. A retail meat dealer may be ever so proficient as a salesman and business man, but he may not succeed because of the inefficient way in Avhich the perishable product which he sells is cut. Out of the entire carcass or parts of it he is required to cut portions suitable to the trade and to price them so that his costs will be compensated, an operating margin secured, and profits realized. To cut meat effectively all knives, saws and cleavers must be sharp and in good condition. If tools are dull clean cuts can not be made. If they are not clean meats are given a ragged appearance. Parallel cuts are necessary to j^revent the accumulation of unsalable ends. Successful cutting can be largely measured by the degree to which these parts are kept at a minimum. The demands of the trade are the first consideration in cutting meats, but in some cases these are so unreasonable that they can not be met. A compromise is then necessary. To cut so as to obtain the maximum yield of choice parts is important, but it is sometimes less important than satisfying customers. To do this may reduce the margins on articles sold, but may have the effect of increasing de¬ mand. Volume is necessary to profitable operation. There is evi¬ dence to support the contention that if volume can be obtained profits will result even though margins are small. This follows because with large volume operating expenses tend to be low. Efficient cutters give attention to the appearance and palatability of meat when cut. Others disregard them. IVhen cutting round steaks, for example, they cut at a sharp angle to the grain. More steaks are obtained, but the}^ are tough and unpalatable when cooked. The better way is to cut round steaks at right angles to the grain. If this is done the number is reduced but the meat is tender. Some dealers cut beef rum))s very short in order to leave more cuts for round steak. Accordingly, the I'limps are small, conii)Osed of a lai'ge proj)ortion of bone and fat, and are difficult to sell. JNIore dis¬ cerning dealers cut the rumps large enough to be valuable in them¬ selves and thus make them easier to sell. Dealers can not always be expected to meet the wishes of cus¬ tomers, For instance, a customer asks for a large, square cut of solid Efficient Methods of Retailing Meat 25 meat from a leg of veal. The butcher grants the request, and as a result a large part of the remaining leg is unsalable. This sale, al¬ though profitable in itself, is unprofitable because of its consequence. Meats should be cut, in the first place, so far as possible to the size required by customers. If this is not clone odd ends and pieces ac¬ cumulate which must be sold for stew, ground into hamburg, or made into sausage. Upon these odds and ends ma^rgins are small. Efficient dealers before cutting meats are careful to find out from customers precisely what is desired. With this in mind they then iMit the meat to the desired size, or, if it is already cut, select a suit¬ able piece. By thus determining customers’ requirements in advance, ends will tend to be reduced and pieces already cut to move rapidly. If profit is to be made on the sale of cooked meats it is necessary to cut at or under the quantity required by customers. For in¬ stance, if 30 cents’ worth of boiled ham is asked for a dealer should cut until he believes he has enough and then weigh the product. If the scale reads 28 cents he should stop cutting and sell the quantity for 28 cents. If he cuts another slice and then sells 32 cents worth for 30 cents his margin practically disappears. Slow-moving cuts require the careful attention of dealers. Those who cut such meats in advance have little difficulty in disposing of them. By so doing they make the entire carcass ready for distribu¬ tion to any type of trade which may arise. The more successful dealers as a rule attempt to sell the fore¬ quarter cuts first. They cut, trim, and prepare them before touching the hind quarter. They are also careful to trim and bone them, thus improving their appearance and increasing their value in the eyes of customers. Inasmuch as these cuts contain much waste, high prices can not be charged for them unless they are satisfactorily trimmed. Among the more effective suggestions for preparing for sale the slower-moving cuts are: 1. Bone and roll necks of beef and sell them fresh or corned. 2. Cut up as steaks chucks Avhich move slowly as roasts. To elimi¬ nate long skirts on rib and round bone cuts of chuck roasts, some dealers cut out a square piece known as the English cut. This con¬ sists of the ends of four or five ribs cut from the lower corner of the chuck next to the rib roast and plate. It makes a desirable roast for slicing because of the solid meat above the ribs. 3. Prepare the big end of a large rib roast (sixth to eighth ribs) as follows: Remove the blade bone, sell the meat above for stew, chopped beef, etc., and bone and roll the remainder. 4. Bone and roll beef plate and sell fresh or put into brine for corning. 5. Cut off the lower (corner of beef sirloin, making a triangular cut (called “top sirloin”) suitable for roasts or small steaks. 6. Bone and roll rum[)s and sell them as fresh roasts or corned beef. 7. Bone and roll the entire fore (piarter of veal, including the neck, shoulder, rib, breast, and shank. Some dealers also bone and roll the shoulder and veal breast—the latter frecpiently being also pock¬ eted for stuffing or made into patties or crocpiettes. 8. Bone and roll or make into patties or croquettes the breast and shank of lamb. 26 Miscellaneous Circular 54, U. S. Dept, of Agriculture 9. Cut shanks and butts of smoked hams into large pieces. In this form customers are generally willing to pay a price for them which is profitable. Dealers with customers who consider price very important need to be conservative about the degree to which they trim their products. Careful and adequate trimming, however, pays in the long run, not¬ withstanding the impression commonly held that trimming is not justified. Consumers have little need for excessive fat and bone, but retailers, if they are careful, can dispose of them at more than sacrifice prices. Customers are slowly coming to realize that car¬ casses are not made up entirely of choice parts, and that if they in¬ sist upon receiving only such cuts they must pay high prices. The best outlets for left overs, trimming, etc., are in hamburger and corned beef. To develop a trade in such products requires that only the best products be used and that the meats be carefully pre¬ pared. Only fresh meats should be used, with all sinews and excess fat trimmed off. When dealers are careful about this, experience shows that an active trade in these j^roducts can be developed. Meats selected for corning should be strictly fresh. Moreover, the brine solution must be of suitable strength and be changed fre¬ quently. Some dealers find it advisable to use three brine tanks. The first contains a weak solution which soaks out the blood, the second a strong solution which does the actual curing, and the third a weak solution in which beef is kept after being cured and while awaiting sale. Sausage and cooked meats provide an outlet of secondary impor¬ tance for trimmings and left-over pieces. If a dealer is efficient there is comparatively little meat which should be used for this pur¬ pose. Left overs in large quantities indicate inefficient buying, han¬ dling, cutting, and selling. Meats sold over the counter bring far greater returns than when made into sausage. Sausage trade of a distinctive character is, however, often profit¬ able. Indeed, some dealers buy trimmings and meats for the manu¬ facture of sausage. For retailers to make a profit from making and selling sausages, however, they must use only quality products and charge adequate prices. They can successfully compete with sau¬ sage firms only on condition that they make a superior product. Extra labor is required if sausage is made in large quantities, and usually such labor is not fully utilized. If this is the case the costs are higher than those where sausage making is carried on on a large .scale. In’disposing of fat, bones, and waste to rendering ])lants retail dealers should obtain the most profitable terms possible. 'Whether sudi items should be sold separately or mixed depends U]:)on the pro- ))ortions of the ingredients. Dealers should always make a test of the mixture of the Avaste to determine Avhether it is more profitable to sell it separately or mixed. RULES FOR CUTTING OF MEAT 1. Divide the carcass to suit the demands of trade rather than to obtain the maximum yields of various parts. 2. Cut and prepare fore quarters before hind (piarters. Efficient Methods of Retailing Meat 27 3. Be sure to find out the size of piece desired by a customer before cutting. 4. Remember that efficient cutters have fcAV left-overs. 5. Carefully trim and bone the inexpensive cuts. 6. Use care in preparing hamburger and corned beef. T. Always cut meats to insure their tenderness when cooked. MERCHANDISING PRICING POLICY The volume of retail sales depends upon two things—the quantity of goods sold and the prices realized for them. Inasmuch as retail¬ ing of meat is highly competitive, prices are competitiA^ely deter¬ mined. At any given time the amount which a retailer should charge for his products is determined by (1) the price which he pays for them, (2) his operating expenses, and (3) a reasonable profit. The cost of the articles sold is fixed by forces largely beyond his control. This does not mean that the price paid is unimportant or that skill and judgment are unnecessary in choosing the products which are sold. It indicates only that he is required to pay the ruling price of the market. Outside conditions do not so clearly govern his expenses of operation. They are largely subject to his own control. Among the ways suggested through which efficient dealers are able to keep expenses within bounds are the selection of proper sites and the utilization of the labor force. Retail meat dealers sell goods which are manufactured and pre¬ pared for the trade; that is, out of whole carcasses or parts of them they cut and prepare portions suitable for customers’ day-to-day needs. Because of this fact pricing is difficult. It is almost impossi¬ ble to determine, otherwise than by experience and through com¬ petitive influences, the prices which will be paid and which will compensate dealers for the costs incurred. There are, however, fundamental rules and principles which can be followed in the deter¬ mination of price, and something is said concerning them later. Exjoerience seems to demonstrate that an efficient pricing policy is based upon the following fundamental rules: 1. Prices should be reasonable when all of the service rendered by a merchant is considered. 2. So far as po.ssible, prices should be charged which yield fair mar¬ gins on different items or types of meat handled. When prices are charged which yield widely different margins customers are con¬ fused, compare the levels, and become uncertain in their patronage. To use many leaders or specials is unAvise. To dcA^elop bargain¬ hunting practices on the part of consumers defeats the merchant’s purpose in the use of them. On the other hand, if they are properly used they serve as adA’ertising mediums. 3. Fractional prices, such as 12i/i, 143/4, 153/4 cents, should not be used. Such amounts make it appear that ])rice determination is scientific, when in fact it is not. Moreover, this is the fa^mred device of unscrupulous dealers Avho make a practice of giving short Aveights. Consumers look Avith suspicion upon such prices and are likely to confuse the motives of dealers in fixing them at these amounts. 28 Miscellaneous Circular 5^, U. S. Dept, of Agriculture Computing scales do not indicate with precision the prices of meat sold in odd fractional parts of a cent, and consumers if they want to verify them have difficulty in making the required calculations. Moreover, customers generally buy in quantities too small to make computation in fractions of cents of value to retailers. The only exceptions to the general rule are for articles selling below 10 cents a pound, in Avhich cases half-cent differences may be justified. 4. When necessity requires prices should be cut. Such occasions occur when stocks are excessive or Avhen they are moving Avith dif¬ ficulty. Indiscriminate price cutting, hoAveA^er, is bad. It deA^elops a lack of confidence on the part of consumers. 5. In so far as possible, retail prices should folloAV the movements and changes in Avholesale prices of meat products. At times it is difficult to do this because of the rapid fluctuations in the Avholesale market. Retail prices can not be changed eA-ery day or tAAm. It is nevertheless unAvise to maintain retail prices at a giA^en leA^el, regardless of changes in the Avholesale market. When this is done retailers do not assist in maintaining a steady floAV of meat products through clistributiA^e channels. If the Avholesale market is flooded, retail price concessions may serA^e to moA^e them to consumers quickly, not only to the retailer’s benefit but also to that of the entire trade. 6. A one-price policy is desirable. Some dealers unwisely adhere to some extent to the policy of treating customers differently in the matter of price. Discrimination of this sort reacts unfaAmrably in almost eA^ery case. The prices of a commodity like meat, Avhich is purchased daily in neighborhood centers, are currently compared. Discrimination soon becomes knoAvn and reacts unfaA^orably upon the merchant attempting by this method to increase his sales. Unfortunately, most retail meat dealers have no scientific method of determining prices on indiAudual articles sold. They are guided by “hunches,” imitation, and prevailing practice. This is not suc¬ cessful merchandising, except in the feAV cases Avhere merchants are able closely to guess Avhat the price should be. Failures in this respect are as frequent as are successes. Some dealers folloAv such crude methods as the folioAving: Pricing round steak at tAvice the cost of straight cattle and sirloin steak at tAvo and one-half times this cost. Others blindly folloAv the lead of competitors Avithout regard to their OAvn operating expenses or the prices they pay for the articles sold. Successful dealers fix their prices as the result of frequent tests. They refuse to folloAV meat charts blindly, i)referring to set them in keeping Avith the peculiar demands of their trade and the kinds of meat handled. In this resj^ect they are Avise, because the methods of cutting, the demand for various types of meat, percentage of Avaste, etc., differ Avidely from shop to shoj) and from grade to grade of meat, and betAveen carcasses Avithin the same grade. It is almost, if not Avholly, impossible to establish one general set of tests Avhich Avill suffice for eA^ery retailer. Each dealer shoidd make his own tests, presei’A^e the records, and adjust his cuts from time to time in keeping AAuth changes in methods of cutting and the grades of meat handled. Efficient Methods of Retailing Meat 29 Cutting tests for cut meat are different from those for whole car¬ casses. In the first the costs of the various retail cuts should be actually computed, those of the minor cuts, trimmings, and wastes being figured at prevailing market quotations. Table 1 shows the manner of making a test on a beef rib. Table 1. —Test on a 2-'i-pound Iteef rib purchased at 15 cents per pound, total $3.60 ^ Products Weight Cost price Total cost Bones and waste _ _ Pounds 5 im $0. 005 . 12 . 1897 $0. 03 .06 3.51 Meat trimmings _ _ __ _ _ __ Eib roast (boned) _ _ . ... . . __ Total_ 24 3. 60 In this test the cost prices of bones and meat trimmings were taken at the market prices at the time. The boned rib roast, as shown, cost approximately 19 cents. This figure was computed as follows: The total value of the bones and trimmings (which was 9 cents) was subtracted from the total cost of the rib ($13.60) leaving $3.51 as the cost of the entire roast when boned. This figure ($3.51) divided by the weight (18i/^ pounds) gave 18.97 cents as the cost per liound. A method simliar to this can be followed in determining the cost prices of retail parts in any other Avholesale cuts. To the cost price the dealer should add a margin sufficient to cover his total expense, a reasonable profit, and an allowance for shrinkage. If a dealer considers a gross margin of 25 per cent of sales as necessary, he must add 331/^ per cent to the cost price in order to realize this figure. He should not make the mistake of thinking, as many do, that a cer¬ tain percentage on selling price is also the same percentage on cost 2^rice.^ Percent¬ age on selling price Percent¬ age on cost price Percent¬ age on selling price Percent¬ age on cost price Percent¬ age on cost price Percent¬ age on selling price Percent¬ age on cost price Percent¬ age on selling price 20.00 25. 00 26. 00 35.15 25. 00 20. 00 31.00 23. 68 21. 00 26. 58 27. 00 37. 00 26.00 20. 62 32. 00 24. 22 22.00 28. 20 28. 00 38. 85 27. 00 21.25 33. 00 24.81 23.00 29.88 29. 00 40. 85 28. 00 21.87 34. 00 25. 37 24. 00 31. 60 30. 00 42. 85 29.00 22. 48 35. 00 25. 93 25. 00 33. 33 30. 00 23. 07 To determine percentage on cost price for a given percentage on selling price: Percentage on selling price 1—percentage on selling price. ^ , 100 For instance, 20 per cent on selling price= 100—20=80. -gQ- of 20=25 per cent on cost To determine percentage on selling price for a given percentage on cost price: Percentage on cos t price 1+percentage on cost price. 25 For instance, 25 per cent on cost price=100+25= 125. of 25=20 per cent on selling price. 1 Table of percentage equivalents: Percentages on cost price and on selling price. 30 Miscellaneous Circular 5^, U. S. Dept, of Agriculture If ^yhole carcasses are handled it is difficult if not impossible for dealers to determine cost prices of the different retail cuts. A table, however, can be set up similar to Table 2, and if the results of three or four tests of this character are averaged information will be pro¬ vided Avhich will serve as a convenient and fairly accurate pricing guide. When wholesale prices change a new scale of retail x^rices can be worked out in kee^Ding with the adjustments. The results of tests, as a rule, hold good so long as the grades of meat handled and the method of cutting are maintained. Changing prices do not affect the yields of various cuts. The illustration in Table 2 ap^Dlies to dressed lamb, and similar ones can be made for beef, veal, and j^ork. Table 2.— Test on 36% pounds of lain!) purchased at $0.31 per pound Retail cuts Shanks and neck_ Shoulders_ Breasts..._ _ Rib chops (7 ribs)_ Loin chops_ Legs-- - Kidneys (2)_ Shop fat (from hind saddle) Waste (fore saddle)_ Total, whole lamb _ Lamb brought_ $14.38 Lamb cost at $0.31_ 11.40 Gross margin_ 2.98 Gross margin=20.7 per cent of sales; gross margin=26.1 per cent of cost ADVERTISING Since the aim of advertising is to assist in the sale of goods, it has a place in the successful merchandising policy of a meat shojo as well as in any other retail establishment. Advertising in its broadest sense includes everything that attracts the attention of the buying public. It includes recommendations of satisfied customers, fair ]>olicies, efficient management, favorable location, pleasing store front and displays, as well as direct forms of advertising, but this publica¬ tion is concerned only with the direct forms of advertising used in¬ side and outside retail meat shox:)s. Forms of Advertising Inside the Shop All shops, large or small, can use inside advertising with good effect, the only exception being those catering almost entirely to de¬ livery trade, very little of which enters the store. Such advertising, although inexj^ensive, is often successful. Show cards are of two types, one advertising the store’s policies and the other describing articles on sale. Cards illustrating store policies may read: ‘‘Our aim is to please,” “IVe sell for cash only,” “Please rej^ort any discourteous treatment,” etc.; one advertising certain jiroducts may read : “ Try our delicious pork sausage—always fresh.” Show cards must be neat in ax:)X)earanee, brief, and so Per cent cf whole Weight Selling price per pound Exten¬ sion 9.2 Lhs. 07. s. 3 6 $0.25 $0.84 18.7 6 14 .40 2. 75 9.7 3 9 .12H .45 11.6 4 4 .55 2. 34 10.3 3 12 .65 2. 43 33.6 12 7 .44 5. 46 .5 0 3 .03 .06 4.8 1 12 .02*4 .05 1.6 9 .00^ 100.0 36 12 0.391 14. 38 Efficient Methods of Retailing Meat 31 placed that they can be easily seen and read. Colored cards are de¬ sirable, although black and white cards are satisfactory. If merchants themselves are unable to prepare neat and attractive cards they should have them made by professional sign painters. Cluttering ■ up a shop with too many signs should be avoided. Placards dis¬ tributed by meat trade organizations advertising the wholesomeness of meat in general or advocating the buying of certain less ex¬ pensive cuts are useful. An appropriate store name properly painted on a window serves as an advertising medium. Such names as “ Stockyards Market ” or “ Packing House Market ” should not be used; “ Quality Meat Shop,” ‘‘The Sanitary Market,” “Bright Market,” are more desirable. IVlien specials are announced on a window, neatly painted signs or paper signs should be used. Some dealers make the mistake of painting their windows in large, ugly letters and figures. A window with a few sj)ecials painted neatly and in ordinary-sized letters and figures is sure to attract trade. Demonstrations by manufacturers of sausage, cooked meats, smoked meats, etc., draw trade to retail shoj^s. Booklets prepared and distributed by packers and trade organizations containing in¬ structions for cooking the less-demanded and inexpensive cuts are serviceable in increasing the sale of these cuts. Novelties, such as blotters, calendars, pencils, or fly swatters, may be used for adA^ertising purposes, but their cost should not be per¬ mitted to become excessiA^e. Where purchases are made by children good will may be assured by presenting them Avith such noA^elties as caps, toy balloons, jDencils, and penholders, that carry the dealer’s adA^ertisement. Forms of Advertising Outside the Shop Advertising by means of neAvspapers, circulars, or handbills, and letters is expensiA^e and is not generally used by meat dealers. Meat is an eA^eryday necessity, and because people more or less regularly patronize certain shops these forms of adA^ertising do not pay as a rule. In the case of a comparatively fcAv dealers, hoAvever, these mediums are used Avith good results. Success in the cases noted seemed to be attributable to the fact that the adA^ertisements Avere carefully prepared and Avere used persistently rather than occa¬ sionally. If circulars are used they must be Avisely distributed. If letters are sent to prospecti\"e or regular customers the mailing list should be relatively small, carefully selected, and “ aliA^e.” Letters are ex- pensiA'e Avhen the costs of the stationery, printing, addressing, and postage are considered. One dealer estimated his cost at 5 cents a letter. But letters can be used to advantage by delivery shops as means of procuring ncAV accounts, and they may be inclosed Avith monthly statements to established customers, and may be used to secure prompt payments and to advertise ncAV or special products on hand and inexpensive cuts. AdA^ertising outside the shop to be effectiA^e must be used intelli¬ gently. Advice and assistance from experienced advertising men rather than from ordinary printers, for instance, are necessary. Advertisements must haA^e attention-getting (pialities. These are obtained by the use of headings of suitable size and type—a feAV 32 Miscellaneous Circular 5 ^, U. S. Dept, of Agriculture words which effectively state the message and in some way challenge the reader’s attention. Glaring headings and extravagant state¬ ments should be avoided. Borders should be plain and of a kind which sets off the advertisement from other matter. Ornaments should not be used, because they divert the reader’s attention. Ulus-, trations which are appropriate to the advertisement are effective be¬ cause they are often more forceful than words. Different sizes and styles of type can be used to advantage because they carry emphasis. The form of advertisement having been decided upon, it should be used so long as it brings business. Where the same form is used continually it helps to identify a market. Moreover, if it is always given the same position in neAVspapers and other printed mediums it tends better to arrest attention than if it appears in different places. The wording of advertisements should be simple, cheerful, to the point, and as brief as complete description permits. Enough must be written about the article advertised to fix the message in the reader’s mind. The message should be vivid and appeal to the read¬ er’s imagination and appetite. Superlatives and exaggerated state- cents, such as “ The best meat in the world,” or Xo finer poultry to be had anywhere,” should be avoide.d. Such statements are in¬ effective; it is better to understate than to overstate the quality or value. Prices should be specific. General statements, such as ‘‘ Chickens from 28 to 40 cents^” are bad: “ Chickens at 28 cents, 34 cents, and 40 cents ” is better. A statement describing the quality offered at each price is best. Advertising to be effective must be truthful. Untruthful adver¬ tising will fail because women to whom appeal is made are usually keen buyers. The truth of this was acknowledged by dealers who had tried misleading advertising. The confidence of the trade once lost is extremely difficult to regain. If fractional prices are quoted the fractions should not be in small print difficult to read; if end pork chops are advertised they should not be called pork chops; ” if picnic or California “ hams ” are featured the}^ should not be called just “ hams.” If cheap grades are handled they should not be given choice names; if bargains are advertised they should be real, not fakes. The best types of meat to advertise at a given time depend among other things, upon the season of the year, habits of consump¬ tion, stocks on hand, days of the week, etc. Few items sliould be advertised at one time; six to eight specials are preferi*ed by the best advertisers. A greater number makes an advertisement lose its appeal. Advertised and branded ])roducts can ])e used with better results than products not generally known to the ])ublic. Occasional advertising does not secure and hold ti’ade. For this purpose repeated suggestions in the form of well-woi‘ded, attractive advertisements are necessary. Binfing habits, like other habits, are not easily changed. Advertising by means of trading stamps and coupons have, in general, proved unsatisfactory. They are expensive, amounting in some cases to as mucli as 2 per cent of sales. Misunderstandings and friction with customers often result. In several cases observed merchants had discontinued the use of such methods without injury. Efficient Methods of Retailing Meed 33 Advertising in church, school, fraternal society publications, and in programs rarely increases sales, but does serve to establish and keep good Avill. Expenditures for this purpose easily grow into sub¬ stantial sums if care is not taken, and the intangible results under such circumstances may not justify the money spent. Dealers should see that institutions supported in this manner are located in their own trade areas. Cooperative advertising can be used far more extensively by meat retailers than is now the practice. The Avriter obserA’'ed a group of independent dealers effectively using cooperatiA^e neAvspaper adver¬ tising in order to meet chain-store competition. Dealers may Avisely join Avith near-by grocers, A^egetable dealers, or e\"en small depart¬ ment stores in sending out circulars and other advertising matter. DISPLAY Retail dealers are beginning to appreciate the importance of dis¬ play in merchandising their goods, but they do not giA^e it the atten¬ tion it deserA^es. Meat Avell displayed (1) increases sales, (2) econo¬ mizes on the time of clerks because less direct salesmanship is needed, and (3) saA^es the time of customers because they can make their OAvn selection. The extent to which butchers can use display depends upon the nature of their trade and location. All dealers can not use it Avith the same effectiA^eness, but some forms, such as coimter displays, can be used by all shops except those catering to trade Avhich seldom Ausits the store. WindoAv displays are effectiA^e on frequented streets and corners. When deciding upon the advisability of using elabo¬ rate displays merchants should consider the expense inAmlved. This includes, among other things, cost of equipment and material, spoil¬ age of meats, and time of clerks used in preparing them. Single AvindoAvs running the length of the store giA^e good display effects. Double windoAvs, or separate compartments, are necessary Avhen displaying meat and fish. WindoAvs Avhich are too long can be partitioned for different types of displays. The best depth of a Avindow for this use is 3 to 31/4 feet, and the most convenient height of the AA indoAv fioor 3 feet or more aboA^e the sideAvalk leA^el. Because meats are rather small-sized articles they can be seen most effectively Avhen brought close to the leA^el of the eyes of obserA^ers. (See fig. 3.) Some dealers haA^e found portable stands placed on AvindoAv floors effective for displaying small items. The floor should slant toAvard the street and be made of attract!A^e and easily cleaned material; Avhite vitriolite, marble, and tile, while expensive, are the best, al¬ though oilcloth is fairly satisfactory. Inclosed AvindoAvs, Avith the upper part screened to permit proper A^entilation, are desirable for fresh meats. Articles can not be effectiA^ely displayed unless the light is ade¬ quate. It should fall directly upon the objects and not shine in the eyes of obserA^ers. Reflector lights placed in the upper front sec¬ tions of AvindoAvs meet both these conditions. In Avarm Aveather • meat should not be displayed in AvindoAvs unless provision is made for refrigeration. For this purpose mechanical refrigeration is best, but it is too expensiA^e as a rule for small shops. As alterna- 34 Miscellaneous Circular 54 , U, S. Dept, of Agriculture tives dealers can use large containers filled with ice or the tops of freezer counters, cooling the counters mechanically or by ice. To overcroAvd a window defeats the purpose of display. If the meats do not appear attractive and appetizing trade is repelled. Products should be arranged in a neat and orderly manner, each piece, so far as possible, clearly in view of passers-by. If they are piled one on the other or carelessly strewn about the effect is bad. If meat is garnished with fern leaves, parsley, or lettuce leaves it appears attractive and fresh. (See fig. 4.) Excellent window effects can be obtained by using an assortment of meats of dull and bright colors. Rows of pork cuts, for instance, appear dull by themselves; if beef cuts are arranged between them the general effect is improved. To give cut meats a pleasing appear¬ ance they should be placed on platters. An attractive background is necessary to set off displays properl 3 ^ For this purpose a window inclosure ma}" be used or mirrors and display cards. The window glass should be kept clean to make proper display possible. In cold weather the use of fans, ventilators, gas jets, etc., will help to keep the glass free from frost. Window floors should be kept clean and neat, and free from papers, containers, bags, and waste. The prices of displayed meats should be indicated by clean tags with figures clearly marked. (See fig. 5.) Black cardboard tags with white painted figures, or glass with the back side painted black with the figures in white, are most satisfactorv. The article to which each tag applies and the sales price should be clear. Mis¬ representation of merchandise in the mind of the trade may follow if these points are neglected. When displaying unfamiliar articles Efficient Methods of Retailing Meat 35 it is a good plan to indicate the price, the cut of meat, and the use to which it can be put. Week-day displays (Monday to Friday) should consist mostly of chops, steaks, stews, pot roasts, etc. Week-end displays (Friday and Saturda}^) should consist of legs of lamb, rib roasts, poultry, etc. For holidays poultry and hams are appropriate; for fast days fish where demanded. Many dealers have built up a large business in ready-to-eat meats during the summer by displaying them at¬ tractively. Frequent changes of displays are desirable, because new products are suggested to the trade and spoilage and shrinkage are reduced to a minimum. Fresh-cut meats should be changed once or twice a day. To sell directly from the display stock helps to accomplish this. If displayed meats are kept on platters stock may be replaced quickly. Smoked meats should be changed often to prevent ex¬ cessive shrinkage. Attractive decorations can be made of paper decorations, display cards and cartons. Such displays should be changed frequently. Fig. 4.—A meat display garnished with greens Counter displays should supplement or follow up but not neces¬ sarily be restricted to those shown in windows. (See fig. 6.) They should be properly refrigerated, well lighted, have the prices indi¬ cated by suitable tags, and be located conveniently to clerks and cus¬ tomers. Each article displayed in this Avay should be assigned a certain position, those that need to be pushed being given places of prominence. 1. Don’t neglect attractiveness and appetizing appeal in display¬ ing meats. 2. Don’t fail to have displays well lighted. 3. Don’t crowd windows with too many items and too much va¬ riety. 4. Don’t display in the window meats which consumers arc not interested in buying at the time. 5. Don’t neglect to change displays frequently. 6. Don’t let spoilage of fresh meats be excessive. 36 Miscellaneoas Circular 5^, U. S. Dept, of Agriculture 7. Don’t spend too much money on display equij^ment and mate¬ rial. Display is a means to an end, and that end is increased profits. SALESMANSHIP Even though meats are correctly priced, effectively advertised, and well displayed, efficient salesmanship is necessary to their successful merchandising. Salesmen are required actually to advise the cus¬ tomer in buying, to make the sale, and to dispose of the meat in the proper order. It is the salesman upon whom the manager must depend for safeguarding his interests and assuring successful operation. It is said that salesmen are born, not made. Whatever truth there may be in this statement, it is certainly not the whole truth. Sales¬ men can be taught to be efficient. Some of the more important ele¬ mentary lessons of successful salesmanship are as follows: 1. Customers must be approached promptly and courteously, an interest in their desires being shown. Nothing is more annoying to a customer than to wait until a clerk or proprietor finishes a drawn- out telephone call, or sweeping the floor, etc. If something is being done which requires the salesman’s attention, the customer should be recognized, greeted pleasantly, and told that she will be taken care of in a few moments. 2. Customers should be waited on in the order in which they enter the store. It is sometimes difficult to do this during rush periods, but the principle should be followed Avhen possible. Clerks may courteously inquire, “ Who’s next ? ” Efficient Methods of Retailing Meat 37 3. A proper form of address is desirable when approaching cus¬ tomers. “ Madam ” and “ Sir ” are preferable to “ Lady ” and “Mister”; “Mrs. Jones” or “Mr. Smith” is better than either. “ Young lady,” except in the case of a little girl, should not be used. To call children by their first names often pleases; to fail to remember the name of a regular customer is inexcusable!. A cheer¬ ful “ Good morning ” or “ How do you do ? ” often serves to soothe a bad temper. “ Yes, ma’am ? ” may not show sufficient interest. “ Mdiat is it you wish to-day ? ” or “ What can I do for you ? ” is better. Fig. 6.—Counter displays tliat sell meat DON’TS IN DISPLAY 4. Salesmen should be familiar with the kind and quality of meat and size of the cuts wanted by customers. If they are they can anticipate their wants, direct in i^art their purchases, and avoid wastes in cutting. Some customers do not like to be told what to buy, but few take exception to being aided in purchasing. Suggestions may take a variety of forms, such as “We’ve just received Some fine veal,” “Veal is cheap this week,” “May I suggest some veal stew?” These are positiA^e—they suggest assent. On the other hand, such leads as “ You don’t want some nice A^eal stew, do you?” are sure to recei\^e a negatiA^e ansAver. A suggestion is ahvays AA’elcomed; too much direction may be resented. 5. Clerks should appear interested in the AAushes of customers. Too frequently they are treated discourteously, salesmen carrying on a rapid-fire conversation among themselves or with outside salesmen, or exchanging glances, smiles, subdued comments—all of Avhich may offend sensitiA'e patrons. 6. During the sale, meat should be carefully handled. It should be picked up and laid doAvn in a manner not repulsiA^e to customers. 38 Miscellaneous Circular U. S. Dept, of Agriculture For instance, to seize a chicken, slam it down on the block as though it were a piece of wood, cut and draw it carelessly—making it difficult for the customer to stuff it preparatory to roasting—are bad. Meat should not be thrown from a distance of several feet to the wrapping counter. AVhen two or more items are wrapped together they should be separated so that one kind does not spoil or flavor the other. When a customer opens a package at home the meat should appear in perfect condition. Careful Avrapping for children or distant customers is essential. 7. Dealers should be enthusiastic about their trade and impart such enthusiasm to their clerks. A thorough knoAvledge of meats, their food value, and suitability to different kinds of cooking pro¬ motes real interest in the service that dealers render. If statements about the quality or A^alue of meats are based upon facts they carry conviction. 8. If customers are served promptly there is time for neither pro¬ prietor nor clerks to talk much with them. Engaging in small talk and about matters not pertaining to business is especially bad. Too much talk may cause customers to ask for favors as to price, service, and quality, or extension of credit privileges. Even during dull periods it is not Avise to spend much time in conversation, because customers Avill carry the habit into rush hours, Avhen time is precious. 9. Clerks should be truthful and honest in dealing with customers. Their confidence and good Avill explain in part if not Avholly the suc¬ cess of some shops; lack of confidence and ill Avill the failure of others. Untruthful statements about meat, intentional or otherAvise, must not be made. A chicken, for instance, suitable only for stew¬ ing should not be represented as fit for roasting. If clerks can not give correct ansAvers to customers’ questions they should inquire of others before replying. When a customer asks a question the ansAver should be giA^en at once; hesitation causes her to think the butcher is framing some alibi. Promises must be made only Avhen their ful¬ fillment is certain. To promise deliA^ery at a definite time Avhen it is knoAvn that it may not be made is bad; to promise to obtain some special item Aidien it is not certain that it can be had is equally bad. Honest Aveight—IG ounces to the pound—is a policy never to be deviated from. The reputation of a shop giving short Aveights spreads quickly and Avidely. 10. Arguments Avith customers should ahvays be aAmided. The policy “ The customer is alAA^ays right,” is a Avise one to folloAv in handling complaints. Dealers Avho act upon it, although knoAving in a particular case that the customer is Avrong, meet complaints more successfully than do those Avho act upon the opposite policy. 11. In closing a sale it is frecjuently Avise to suggest further pur¬ chases. If so, suggestions should be jmsitive not negatiA^e. “You don’t Avant any bacon, do you?” is not so satisfactory as “May I suggest some bacon for breakfast? ” “ Do you need eggs or butter? ” If suggestions are oA^erdone customers may take offense. If they are in a hurry it is better to close the sale Avith a pleasant “Thank you” than to urge other purchases. A smile is ahvays an asset; a frigid stare and a glum demeanor may proA'e a liability. 12. NeAv customers should ahvays be giA^en special attention. To “size them up” is not difficult if salesmen use care and practice Efficient Methods of Retailing Meat 39 the “art of selling.” A hurried customer can be distinguished by her manner. She moves and thinks quickly, expects others to react in the same way, knows what she wants, and wants it at once. Such a customer should be approached promptly, her wants determined and filled immediately. Delays will annoy. To use an indifferent, lazy manner does not invite further patronage. 13. Tactful suggestions are always welcomed by the undecided cus¬ tomer. These may take a number of different forms. If it is known what type she usually buys, a particularly fine cut of the same kind may be suggested; or, if she indicates a desire for a change, something different may be offered. If it is late in the afternoon, such items as roasts or stews should not be suggested; steaks or chops which can be prepared quickly are more appropriate. If a customer is of a vacillating type a clerk may decide for her by laying aside the meat chosen, asking the quantity desired, placing the meat on the scale, etc. 14. The talkative customer is probably the most difficult to serve. If clerks are too friendly, their time is wasted. If they show little interest, she seeks those who are more responsive. If clerks are kept busy lost motion from such trade as this will be reduced to a minimum; if they seem to have time for visiting, they will be im¬ posed upon. Customers of this type may be brought to the point if the clerk uses the first lull in the conversation to remark casually, “ By the way, I forgot to ask you what you wanted,” “ By the way, I didnT show you the turkeys you wanted to see,” etc. 15. The distrustful customer needs to be especially assured that the product purchased is as represented. This may be done by show¬ ing all sides of a piece of meat; by the dealer standing in a position when cutting the meat to allow the customer to see everything that goes on; by leaving the meat on the scale long enough to give the customer time to read the weight, and, if necessary, by quoting the weight in pounds and ounces, price per pound, and total cost. 16. When foreigners are served and a dealer not speaking their language has difficulty in making them understand he should use simple English words, speak slowly and distinctly, and explain as much as possible with gestures. Interest in the wishes of the cus¬ tomer is reassuring. To be curt or impatient will not procure this class of custom. 17. Children are not difficult customers, and it should be a pleasure to treat them kindly. The secret of many a merchant’s success lies in the attention he gives to purchases made by children. The motto of every shop should be, “Treat children as well as or better than their mothers.” Children know nothing about the price or quality of meat. If sales are made to them, dealers assume the entire re¬ sponsibility for satisfaction. To take advantage of a child’s ignor¬ ance is bad merchandising; temporary gain will prove a permanent loss. Children are valuable in advertising a shop, and if treated properly may determine the place where parents make their purchases. It is important that dealers keep in mind the fact that children are acting for their parents and that any error or dissatisfaction, will be at¬ tributed to the merchant and not to the child. 40 Miscellaneous Circular 54, TJ, S. Dept, of Agriculture RULES FOR SUCCESSFUL SELLING 1. A23pFoacli all customers promptly as they enter the shop and make a sincere effort to determine what they Avant and AYhich articles they prefer. 2. So far as possible, give customers Avhat they Avant. In making suggestions to them use the positiA^e rather than the negatiA^e form. 3. XeA^er become impatient, eA^en Avith the late customer. Be courteous at all times. 4. Don’t misrepresent merchandise. If questions can not be an¬ swered correctly, don’t bluff or giA^e a wrong answer. 5. Handle meat carefull}" in the presence of customers. 6. Don’t talk too much Avhen selling; time is too A^aluable. 7. NeA^er contradict a customer flatly; use diplomacy. In adjust¬ ing complaints folloAv as much as possible the policy “ The customer is always right.” 8. KnoAv enough about meat to be an enthusiastic salesman, not a mere order taker. MEETING COMPETITION In the preceding sections of this study attention has been called to the importance of retail meat dealers having a definite pricing policy and adA^ertising and displa3dng merchandise so as to attract and hold custom. Among other important aspects of merchandising- are methods of meeting competition and the demands of trade. Probably no other retail business is more competitive than meat distribution. As a rule operating shops are small, are located in close proximity to trade, and rely almost Avholly upon local patronage. xShops thriA^e or fail largely in proportion as they intelligently meet competitiA-e conditions. Competition is intelligent Avhen thought is applied to matters of price, quality, and serAUce. It is ig*norant respecting these matters Avhen no established policy is maintained, Avhen dealers haA-e no knoAvledge of th'-ir costs, and are unscrupuious as to their methods. The intelligent dealer chooses a location suitable to his needs. His store is pleasing, sanitaiy, Avell lighted, and attractiA'e. He is careful and painstaking about his personal a])})earance, sees that his em- plo^'Ces are courteous and efficient, knoAvs the Avishes of his customers, and intelligently sets about to meet them. The inefficient retailer, on the other hand, oj^erates indilferentlA^ in all these respects. Rather than consciously planning his activities h' is inclined blindl}" to imitate the practices and methods of comi)etitors, to sell inferior grades Avhen he can, to misrepresent his merchandise, to cheat in his Aveights, and to ignore the importance of service. He operates his store from day to da}" largely on the basis of guesses and in ignorance of the costs of both his merchandise and his o})erations. IVhen a conscientious dealer has to compete Avith such a mer¬ chant it is a mistake to folloAv the methods ]>ursued by the competitor. If he acts Avisely he Avill handle superior merchandise, maintain uniform quality, be absolutely truthful in his statements about his merchandise, make only such })romises as he can live up to, be courte¬ ous in his treatment of the trade, and in general folloAv a constructive Avell-thought-out ])rogram. It is needless to point out Avhich type of merchant will succeed. Efficient Methods of Retailing Meat 41 People are as different in their habits of consumption of meat products as they are in other respects. With some service is impor¬ tant ; with others it is of little significance, as chief attention is given to the prices they pay for the purchased articles. As they differ in their financial resources, so they differ in the way in Avhich they ex¬ pend them. It is therefore impossible for any dealer to succeed un¬ less he knows the particular wishes of his customers and satisfies them. If he does otherAvise his trade Avill find a more congenial market. Ordinary demands of trade extend to price, quality, and service. But these are different under different circumstances, in different communities, neighborhoods, and types of people. What they are in a given case a merchant should determine. If he does not he may attempt to dispose of merchandise unsuited in price or quality, or both, to those upon Avhom he depends for patronage. It is easy for an intelligent merchant accurately to gauge the Avishes of his cus¬ tomers. If he keeps a record of complaints, of expressions of satis¬ faction, and of the readiness with Avhich different types of meat are disposed of he is in a position to purchase intelligently and to ren¬ der the kind of serAuce Avhich is most in demand. If he adopts this policy he will find it relatiA^ely easy to deal Avith the arbitrary and unreasonable demands of customers. With the increase in the standard of liAung and Avith higher Avages many consumers are eating more meat and demanding the choicer cuts. This presents a real problem to the dealer. It makes it necessary for him to purchase more carefully, to study effectiA^e means of displaying and selling the sloAv-moAung products, and of cooperating Avith meat and trade organizations in an effort to stimu¬ late the sales of the less-demanded cuts. It may require him to seek new outlets, such as restaurants, boarding houses, and public institu¬ tions. The costs of meeting these latter demands are generally less than those of indiAudual consumers, and it may be possible for him to make price concessions to obtain such trade. A careful study of trade demands may suggest the advisability of adding to the retail stock of meat side lines, such as vegetables and fruits. Cases were encountered Avhere such additions proA^ed profit¬ able. In such instances, hoAvever, dealers kneAV the demands for these products, hoAV to purchase and sell them, and kept accurate records of their success or failure. The rush-hour trade in the retail meat business presents difficul¬ ties Avhich are not easily soh-ed. Some merchants haA’e found it profitable to cut and prepare meats in adA^ance for these busy periods. Others hesitate to adopt this practice because of the damaging effect they think it Avill have upon their trade. If it is begun gradually con¬ sumers Avill become accustomed to the change, and it seems that on the Avhole they come to prefer it provided the meats proA^e satisfactory. People do not like to Avait for serAuce, and almost anything that pre- A^ents this Avill, in the long run, proA^e adA^antageous to all concerned. Another method of meeting rush-hour trade is for dealers to get orders in advance. This is possible Avhere deliATries are made. If dealers courteously suggest the effect Avhich such a practice has on operating efficiency, and are Avilling to extend to customers, in 42 Miscellaneous Circular 54, U. S. Dept, of Agriculture the form of price and service, some of the savings resulting there¬ from, there seems to be no reason why this practice can not become much more common. Its success depends largely upon the skill, tact, and diplomacy with which the suggestions are made, and upon the kind of service rendered if the suggestions are followed. Retail meat dealers are called upon to render two types of special service: (1) Delivery, and (2) extension of credit. To deliver goods involves a cost. There may be compensations for this through a more adequate and economical use of labor time, the wage element being by far the most important expense of the shop. A delivery system when well planned and efficient is speedy, regular, and de¬ pendable; Avhen inefficient it is haphazard and costly. Two deliveries a day are sufficient in the case of most shops. Oc¬ casionally more are necessary, but these should be made in the nature of special deliveries and regarded as exceptional. Dealers, if they Avill, can explain to their customers much more fully than they now do the wastes and inefficiencies incident to their haphazard buying. They can be asked courteously to telephone their orders early, to place them a day or two in advance, and in some cases to leave stand¬ ing orders for each day in the week. Such standing’ orders often Avork AA^ell in the case of restaurant and similar trade. In so far as possible deliveries should be made only within reasonable distances, or costs mount up and may seriously reduce profits. Credit extension is the other special form of service required of dealers. Certain customers take it for granted that credit will be extended, Avhereas others find it a convenience for which they are willing to pay. In some cases it is possible for dealers to discrimi¬ nate betAveen these two types of people. Credit privileges are often abused, and attention to them is constantly required on the part of dealers. Careful extension of credit it the first step necessary in order to keep bad accounts to a minimum. Dead beats ” are found in al¬ most every community, and it is only a measure of safety on the part of dealers to require from each customer Avho applies for credit in¬ formation Avhich Avill serA’e as a basis for extending this priAulege. This should contain, among other things, the customer’s name and address, his occupation, a statement concerning property OAvned, and references to Avhom merchants can refer in case of need, including the former meat dealer. If credit is extended such information should be required in all cases. No one can legitimately object to supplying it. Credit should not be extended to all classes alike. There is no reason Avhy a dealer can not use discrimination in this matter, being liberal to those Avho are prompt in their payments and seA’ere Avith those Avho are neg¬ ligent. If credit is not to be abused, dealers must giA^e the matter of collec¬ tions continuous attention and get their statements out promptly. Tliey should not alloAv accounts to run on beyond their due dates ex¬ cept in rare cases. The terms, moreover, should suit the classes of trade, some being required to pay Aveekly and others placed on a semimonthly or montldy basis. The maximum period should not ex¬ tend beyond a month. Restaurant accounts should be collected Aveekly, Efficient Methods of Retailing Meat 43 It is necessary for dealers to keep accurate records of charge sales. If the volume of business does not warrant the employment of a bookkeeper devices permitting quick and accurate recording of sales should be installed. But to keep an accurate record does not suffice. It must be constantly gone over, customers informed that their ac¬ counts are due, and in case of an unwarranted delay further credit refused. In general native American people have become accus¬ tomed to buying on credit. With other nationalities this practice is not so ingrained, and difficulties often arise subsequent to purchase in explaining the details of amounts due and in making collections. No one single set of principles can be laid down for the granting of credit. If it stimulates business and does not result in loss, it should be followed. If it does the former but does not guarantee against the latter, its use is doubtful. No merchant should adopt a credit policy without previously giving the matter careful thought. If he has adopted it he will continue it only if it proves satisfactory. In summary, it may be said that to meet competition in the retail meat field requires efficient management. This extends to price and quality of goods and to the service rendered. It requires effective advertising and display; necessitates constant attention to operating expenses; requires careful purchasing, cutting, and trimming of meat, and familiarity with the changes in wholesale prices and trade demands. No dealer can expect efficiently to operate a store without a knowledge of every phase of retailing, and to acquire such knowl¬ edge he must be a student of his business. KEEPING RECORDS A study made by the Department of Agriculture in over 1,000 retail meat shops shows that in three-fourths of these shops the pro¬ prietors kept no records or kept records which consisted of crude memoranda. Adequate accounts are of great importance in the intelligent control of the retail meat shop. The more important reasons why the dealer should maintain l^roper records are: 1. They show him just what the business is doing and how it stands financially. 2. They help to stop leaks that spring from dishonesty and care¬ lessness. 3. They enable the dealer to become a more intelligent competitor with his neighboring retail meat dealers. 4. The peculiar conditions in the meat business make it advisable to keep records. The frequent changes in wholesale and retail prices, together with the difficulty of determining the cost of cuts, make it impossible to determine margins and profits unless adequate records are kept. ORGANIZATION OF THE UNITED STATES DEPARTMENT OF AGRICULTURE 1925 fiecretary of Agriculture _W. M. Jardine. Assistant Secretary _I{. W. Dunlap. Director of Scientific Work __. Director of Regulatory Work _Walter G. Campbell. Director of Extension Work _ C. W. Warburton. Director of Information _Nelson Antrim Crawford. Director of Personnel and Business Adniinis- tration - W. W. Stockbergee. Solicitor _R. W. Williams. Weather Bureau _Charles F. Marvin, Chief. Bureau of Agricultural Economics _Thomas P. Cooper, Chief. Bureau of Animal Industry _John R. Mohler^ Chief. Bureau of Plant Industry _William A. Taylor, Chief. Forest Service _W. B. Greeley, Chief. Bureau of Chemistry _ C. A. Browne, Chief. Bureau of Soils _Milton Whitney, Chief. Bui'cau of Entomology _L. O. Howard, Chief. Bureau of Biological Survey _,_E. W. Nelson, Chief. Bureau of Puhlic Roads _Thomas H. MacDonald, Chief. Bureau of Home Economics _Louise Stanley, Chief. Bureau of Dairying _C. W. Larson, Chief. Fixed Nitrogen Research Laboratory _ F. G. Cottrell, Director. Office of Experiment Stations _E. W. Allen, Chief. Office of Cooperative Extension Work _ C. B. Smith, Chief. Library _Claribel R. Barnett, Librarian Federal Horticultural Board _C. L. Marlatt, Chairman. Insecticide and Fungicide Board _«._J. K. Haywood, Chairman. Packers and Stockyards Administi'ation _John T. Caine, in Charge. Grain Futures Administration _J. W. T. Duvel, in Charge. This circular is a contribution from Bureau of Agricultural Economics _ Thomas P. Cooper, Chief. Division of Livestock, Meats, and WooF. C. V. Whalin, in Charge. Northwestern University __ Walter Dill Scott, President. Bureau of Business Research ___ Horace Secrist, Director. 44 additional copies OF THIS PUBLICATION MAY BE PROCURED FROM THE SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON, D. C. AT 10 CENTS PER COPY V