SAMPLES SYSTEM

Timaru Herald, Volume CXLV, Issue 21216, 10 December 1938, Page 15

SAMPLES SYSTEM

WOOL SELLING IN UNITED STATES A NEW DEVELOPMENT’ As the second greatest woolproducing nation in the world, the United States of America deserves some attention from sheep-farmers. How others conduct their business is of interest always and at times instructive. We publish here a letter from the American “Country Gentleman,” telling of a new development there—wool selling on samples. Though that country has about 50,000,000 sheep, and a consequently great wool production, it appears doubtful if the selling organization has been as well developed as that in New Zealand and Australia. An impression is gained that our stock and station agents have performed “a good job of work.” Herewith is the account of sample selling: A new development in western wool marketing, which appears to have given satisfaction to a number of Wyoming growers and promises to expand, is reported by J. B. Wilson, secretary of the Wyoming Wool Growers’ Association. It is an amplification of the old consignment method of selling and gives the grower the authority and responsibility in selling he long has sought.

Under the new method the grower sends to a wool dealer of his choice, Boston or other central market, sample bags of his clip. Usually the grower sends about 5 per cent, of the clip as a sample. This furnishes sufficient wool for a mill buyer to make a careful examination and is much more satisfactory than the old method of attempting to pick a few hand samples to represent a large clip.

“The wool samples are consigned,” explains Mr Wilson, “with the understanding that the house receiving them will use its best efforts to sell the whole clip. Before any deal is closed the grower is to be consulted and the sale price approved by him. “If, in the meantime, the grower desires to sell his wool at home, the house handling the sample bags agrees either to turn them over to the purchaser or to buy the wool at the same price at which the main part of the clip was sold. This method gives the grower absolute control over his clip, because all but the sample bags are stored at home. He can sell it at any time without incurring any penalty charges.” Concerns are reported doing this sample-bag selling on a commission of a half to one per cent, a pound. The adequate samples enable them to present the merits of a substantial clip without facing the problem and cost of storing a large tonnage of wool. Growers are gratified because they have more authority as to price than they had under a system in which the wool is consigned outright with the selling concern having full power to act.