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Determining Costs of Servicing Wholesale Institutional Grocery Orders

Author

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  • Karitas, James J.

Abstract

Excerpts from the report: This study was made to develop effective methods that institutional wholesalers can use to determine the costs of servicing various sizes of grocery orders and to examine order size-cost relationships that may affect their pricing policies. The data presented in this report show the actual costs of servicing orders of various sizes in the three firms studied. Similar cost relationships probably exist in other firms. Costs depend to a large degree on local wage rates, the characteristics of the trading territory, building and land costs, the degree of efficiency achieved, and other similar factors. This report describes the techniques used to develop detailed costs of servicing various sizes of orders, shows the servicing costs in the three firms, and illustrates a possible pricing system based on order size. Some conclusions on general pricing policies are also presented.

Suggested Citation

  • Karitas, James J., 1966. "Determining Costs of Servicing Wholesale Institutional Grocery Orders," Marketing Research Reports 312110, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.
    • Handle: RePEc:ags:uamsmr:312110
    DOI: 10.22004/ag.econ.312110
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