GROCERY PRICES

Press, Volume LXXXIV, Issue 25589, 2 September 1948, Page 6

GROCERY PRICES

PROFITS FIXED BY ORDERS PERCENTAGE SYSTEM ADOPTED By orders issued by the Price Tribunal last Week, standard mark-ups on wholesale and retail prices for groceries are fixed. The general effect of the orders, a merchant’s sales manager said yesterday, was that prices would not be reduced but that the wholesale and retail trades were given a new method of quickly fixing their selling prices. Before, tne wholesalers were allowed a unit margin and the sale of. goods was held up until approval or C rices was given by the Price Triunal in Wellington. The procedure now would be that when lines arrived application would be made, in Christchurch, to the Chris' hurch office of the Price Tribunal am* a quick approval would be given. The procedure; he said, would speed up approval of prices and would save much unnecessary work in Wellington. The orders became operative on Monday. “Copies of the price orders fixing the margins of profits which will be allowed instead of the old unit system have not yet been received and until a copy is available I am unable to make any comment,” said Mr John Jackson, secretary of the Canterbury Master Grocers’ Association, last evening. The case for the New Zealand Federation was presented to the Price Tribunal by Mr R. N. Barker, the secretary, who, with the federation’s president (Mr A. H. Kelly), would visit Christchurch at the end of this month to Explain the federation’s case to grocers. In the case of every item in the long schedule of grocery lines covered by the price orders, the percentage markup allowed the grocers is at least double that allowed the merchants, their mark-up being on the wholesale price. The maximum charges permitted to be made by wholesalers shall not exceed the sum of the basic wholesale price, the maximum percentage permitted on cost, premiums permitted for goods sold in less than container amounts, discounts customarily allowed for payment before a specified date, and the amount of any sales tax. After adding their percentages on wholesale costs, retailers may also tdd the appropriate proportion of the transport costs payable by them. The percentage allowed wholesalers ranges from 6| per cent, to 15 per cent., and to retailers from 15 per cent, to 50 per cent. How the price orders work in relation to the consuming public can be briefly illustrated. A wholesaler buys, say, a line of goods on which no sales tax is payable at £5. If his percentage is 10 and a discount on monthly accounts of 2J per cent, is allowed, he sells at £5 12s 9d. If the goods are delivered without transport charges and the retailer is allowed a 22J per cent, mark-up, the customers will pay £6 18s 2d for the goods which the manufacturer sold from his factory for £5 after a Price Tribunal had fixed the price. If, as an example, a merchant buys £5 worth of loose biscuits, he sells to the retailer at £5 11s 6d. Selling in lib lots and giving all customers the precise 16oz to the pound, the retailer will sell the biscuits, with a mark-up of 40 per cent, allowed, at £7 16s. The mark-up allowed reta : lers on confectionery, excluding chocolate and chewing-gum, is at 50 per cent, the highest in the list of goods handled by grocers.

Main Household Items The following shows the percentage mark-ups permitted on many Whole* p.c. Retail. p.c. Allspice 10 224 Almonds 74 174 Alum 10 274 Ammonia 83/4 224 Arrowroot m 25 Asparagus Baking cups 8% 174 174 33 A Baking powder (phosphate) m 20 Barley, Pearl (bulk) .. 10 224 Beans 8% 224 Birdseed m 30 Biscuits (loose) 8% 40 Blancmange powder .. 74 224 Blue 8 3 / 4 20 Cake mixtures 10 25 Cake papers 174 33A Candles .. .. ■ o 124 Caustic soda 83'4 174 Cereal, dessert Hl 224 Cheese, per dozen 10 20 Cuts 10 224 Chutney m 224 Cleansers m 20 Clothes lines, rope .. Clothes pegs— in 224 Wood or wire 83/4 174 Plastic 124 224 Coconut, desiccated .. 61 174Coffee beans 8’4 30 Coffee and chicory essence 82 20 Coffee and milk 8% 224 Colourings Confectionery— Hl 274 Bulk 8% 50 Per dozen 8% 33A Cordials Cornflour8% 224 Bulk .. .. 61 224' Per dozen 8% 174 Curry powder— Bulk 10 25 Per dozen 8% 20 Custard powder Disinfectants— 8 3 /4 224 Bulk 124 33J Per doz§n Hl 25 Dripping Hl 224 Dyes 124 30 Eggs, dried 61 174 Egg preservative 224 Essences Fish, canned— 111 274 Salmon 74 174 Other 8 3 /4 20 Fly bands and paper 20 50 Foods Hl 20 Proprietary oatmeals 8% 174 Wholemeal packs 111 20 Fruit, bottled* 10 174 Fruit, canned Fruit, dried— 83/4 20 Apples 83/j 224 Apricots .. Currants— 10 224 Australian 10 25 Other 10 22i Dates 10 274 Figs 83/4 20 Muscatels ... 111 274 Nectarines 10 224 Peaches 10 224 Pears 10 22 \ Prunes Raisins— 61 174 Australian 111 25 Other Sultanas— 10 224 Australian Hl 25 Other 10 224 Mixed fruits .. • 111 25 Fruit juice 8% 224 Gelatine .. .. 12J 25 Ginger 83/4 20 Herbs, mixed 10 374 Honey preparations .. 82 174 Hops .. 74 25 Insect, powders, etc. 124 25 Jam 10 22J Jam. diabetic 10 324 Jam-jar covers, paper 15 334 Jelly crystals 82 224 Kerosene 82 274 Lime juice HI 25 Lunch wraps .. 124 25 Macaroni 82 274 Mace .. 10 224 Meats .. 111 224 Methylated spirits Hl 224 Mint, dried 10 374 Mustard 61 174 Molasses 124 30 Nutmegs 82 20 Nuts .. .. .. 10 224 Oils .. .. .. 82 174 Pastes •• 10 224

RePeanuts sale. .. 7J tail. 224 Peanuts, salted .. 10 30 Peas, canned or bottled '.. 83 20 Dried .. 83 25 Peel ... .. 10 224 Pepper .. 8J 174 Pickles .. m 274 Pickling spice .. 10 20 PolishShoe .. 1U 20 Floor and furniture .. m 224 Knife .. 124 25 Metal and silver .. in 224 Stove .. 124 25 Polishing outfits .. 10 20 Poultry spice .. 124 25 Pudding base .. .. 114 25 Puddings .. iu 224 Rat poison .. 174 33J Rennet .- 12I 274 Rice .. 83 174 Sage .. 10 374 Sago .. 10 174 Salad dressing .. 10 224 Salt .. e .. m 40 Sandwich spread .. m 25 Sauces and relishes .. m 30 Semolina .. 82 25 Soap .. .. 74 174 Soda, bicarbonate .. m 35 Soda, crystals .. 10 40 Soot destroyers .. 132 30 Soups .. 83 20 Soup powders and cubes ... 10 25 Spaghetti .. 82 274 Spaghetti, canned .. 83 224 Spanish cream .. 114 224 Spice, mixed .. 10 224 Starch .. 10 224 Suet, shredded .. 114 224 Sulphur .. 124 33J Tapioca .. 64 174 Thyme .. 10 374 Toilet paper .. 74 20 Vaseline .. 114 20 Vegetables— Canned, etc. .. 82 224 Dehydrated .. 10 25 Vegetable extracts • • • .. 114 .. 83 . 224 Vermicelli 274 VinegarBulk .. 15 324 Other .. 10 224 Washboards— Glass .. 114 25 Wood .. 64 20 Whiting .. 124 33A Window-cleaning fluids .. 124 25 Yeast cakes • • 15 33J