Horti-Business Management (2+0)

Marketing Cost

• Marketing costs include “the outlays for marketing products at farm and local shipping points, and at the mines, forest or factory. They include outlays for transportation and storage from point to point as products move to market; they include the margins taken out by various wholesale middlemen; and the marketing expenses of producers who market their own products; they include the cost of retailing and also the expenses involved in inspection, standardization assorting and packaging, in financing and in risk taking, and in gathering, disseminating, and interpreting market news.
  
• The difference between the consumer’s and the producers’ price is known as spread. A distinction can be made between the expenses and the profits of which this spread s composed but since net profit usually make up but a small part it is correct to refer to the spread as the cost of marketing.