Before the Italian or English hats enter into competition in the
domestic wholesale market with hats of domestic manufacture expenses for
transportation, marine insurance, and consular fees must be incurred. In
the season 1923-24 the charges specified amounted to approximately $1.10
per dozen for Italian hats and $1.35 per dozen for English hats.[3] Such
expenses are set forth in the lower half of Tables 8 and 9.
[Footnote 3: Computed from consular invoices for hats imported at the
port of New York in the six months, January-June, 1924.]
The methods of marketing foreign and domestic hats are similar, but
because of minor differences in terms of sale, etc., it was not found
practicable to institute a mathematical comparison of selling costs.
Some domestic firms deal only with jobbers, others only with retailers.
A few of the largest firms sell to both jobbers and retailers. When
the manufacturer dispenses with the services of jobbers his selling
costs are, of course, increased. Foreign straw hats are distributed
principally by importing jobbers. Such firms are usually engaged also in
the marketing of domestic hats and in some instances are manufacturers
or have financial interests in domestic factories. Foreign factories
occasionally deal directly with large retailers in this country. In such
cases it is usual for the retailer's representative to travel abroad to
inspect samples and place orders. One large Italian factory maintains a
New York office through which it deals directly with domestic retailers.