4c ice-creams

Press, Volume CXIII, Issue 33154, 19 February 1973, Page 12

4c ice-creams

Sir, —I am obliged to accept the figure of “Shopkeeper” regarding the cost of bulk ice-cream, but still con-

sider that his assessment of overhead costs on a small ice-cream is a matter of opinion. Maintenance and depreciation on a freezer, wages, etc., are no doubt accountable. But, for example, a freezer surely contains many other profitable stock lines. An assistant’s time may be worth the figure quoted, but if no sale is being made, then wages for that time are a loss anyway, unless that I person is fulfilling other pressing duties. An employee’s work usually expands to fill the time available. “Shopkeeper’s” point could be conceded regarding the loss incurred in selling the occasional small icecream, but I feel that this would be offset by gains in good will, and a resutling increase in turnover. I suspect that many manufacturers and retailers have tended to apply generalised overheads to specific items to justify price increases.—Yours, etc., M. WELLS. February 16, 1973.