MANUFACTURING AND SELLING. 129
cent as compared with 3.72 per cent. This is probably due to the
fact that the smaller concerns in New York City have fewer salesmen
on the road, sell more to local buyers, and employ only city sales-
men whose salaries and expenses are lower than those covering a
more extensive territory.
It will be further noted that the factories outside of New York
City sell a considerably greater portion of their product direct to the
retail trade than do the establishments located in the city, namely,
80.22 per cent and 73.06 per cent, respectively.
Very little exporting was done, the table showing that the estab-
lishments in New York City sold 0.22 per cent to this trade, while
factories outside of New York City exported only 0.07 per cent of
their total sales.
The table gives an arrangement of groups, showing a combination
of Groups I and V, composed of establishments with net sales of
less than $100,000; Groups II and VI, with net sales of $100,000 and
less than $200,000; Groups III and VII, with net sales of $200,000
and less than $4Q0,000; and Groups IV and VIII, with net sales of
$400,000 and over.
In comparing these combinations it is seen that Groups IV and
VIII show the highest selling cost, 8.8 per cent; the greatest expense
for salaries, commissions, and expense of salesmen, 4.92 per cent;
and also the highest manufacturing Jas, 8.02 pe cent.
Groups IIT and VII and Groups II and VI show the second and
third largest manufacturing ro 6.74 per cent and 5.2 per cent,
Separiivats.
roups I and V show the lowest manufacturing profit, 4.96 per
cent, and the second highest selling expenses, 7.08 per cent for total
selling cost, including 3.24 per cent for salaries, commissions, and
expense of salesmen.
This comparison indicates that the large concerns—those possessed
of sufficient capital to expend considerable money on a selling
organization—are in position to make larger profits than the concerns
which turn out a limited product.
_ From information secured from 58 of the 65 establishments inves-
tigated and shown in Table 40, it is seen that only one concern,
establishment No. 13, reported selling exclusively to jobbers, while
26 sold all of their product to retailers. Three others sold to retailers
only in their domestic trade but also exported a portion of their
product, It will be further noted that 28 manufacturers sold to
oth jobbers and retailers, and of these 18 sold 50 per cent or more of
their product to jobbers.
The table further shows that a larger proportion of the plants out-
side of New York City sell all or most of hn products to retailers
than is the case with plants located in New York City.
Only nine concerns did any exporting, and these in only small
quantities. The establishment (No. 6) doing the largest percentage
of business of this kind exported only 2 per cent of its ps sales.
Of the 58 establishments that a on this subject, 40 reported
that all or the greater pags of their sales were to retailers, 13 that
all or the gone part of their sales were to jobbers, and 5 that half
of their sales were to jobbers. In Table 41 a comparison is made of
the profits of the establishments the larger part of whose sales were
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