In quoting prices on goods, manufacturers and distributors usually designate whether they will pay the freight or whether it is to be paid by the consignee. In the latter case the price is quoted f. o. b. at the place from which the goods are shipped, which means freight on board at that point. That is to say, if a distributor located at Detroit quotes his automobiles f. o. b. Detroit, he means that he will see that the goods get into the railroad company's hands at Detroit, but that the consignee pays the freight from Detroit to the destination. The latter is the common practice in shipping.
In the following exercises we shall treat the subject of distribution under four heads:
| I. | The Retail Merchant. |
| II. | The Wholesale Merchant. |
| III. | The Mail Order Merchant. |
| IV. | The Salesman. |
I.—The Retail Merchant
Exercise 259
Oral
You are opening a grocery store. Remember that your object is to sell the largest possible amount of goods. Develop each of the following suggestions:
1. What kind of location would you desire?
2. How would you have the front of your store painted? Would you try to make it stand out from the rest?