Word: profitability
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Dates: during 1950-1959
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Lean, grey-haired Max Conrad is a throwback to the romantic days when pilots flew for fun and adventure as much as for profit. But he got into flying by accident. After college he started an orchestra, took up flying only so that he could transport his band from place to place more conveniently. In 1929 he gave up the band and went into the charter-flying business in his home town, Winona, Minn...
...Switzerland. Finding an inexpensive villa near Lausanne, he installed his family there and began making flying visits from Minnesota to Europe. In 1952 the family moved back to the U.S. and settled in San Francisco, but Conrad had learned to like the long hours of flight. He made profit out of pleasure by ferrying U.S. planes to distributors and customers in Europe. To while away the lonely hours, he composed songs in flight, chiefly to keep himself awake, became known as the "flying songwriter," though none of his efforts have yet been recorded commercially...
...market for many items-instant coffee from 12% to 31%, frozen vegetables from 38% to 53%, margarine from 58% to 71%, etc. Even such an advocate of national brands as the National Tea Co. (1958 sales: $794 million) is reluctantly turning to private labels in hopes of boosting its profit...
...shift to private labels has often been aided by the national-brand makers, who offered profit margins so small that supermarkets were forced to turn to private brands. "Take the case of detergents," says pro-national-brands Paul Willis, president of Grocery Manufacturers of America. "There's as much as a 40?difference in price on some sizes at the distributor's level." The reason: manufacturers with more capacity than orders take on a job of putting out a big-volume private label without allocating their production costs realistically...
...force a middle-sized producer to turn out a private label for his product for them at a lower price, or they will not buy from him at all. The real fear is that the supermarkets, in their increasing competition with each other, will put such a premium on profit margins that they will squeeze out more and more name brands to the ultimate harm of the consumer, who has benefited most from the new products that have been developed...