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 REPORT ON PRICE GROUPINGS


 The matter of price groupings was discussed with the Deputy
 Administrator in Washington, and also with the Legal Division. It is
 suggested by the Deputy Administrator that the Code Authority ask to
 have the Code amended so as to include the following section:

 "Wholesale Prices..... To maintain established trade Drac-
 tice, and to limit the multiplication of numbers, but
 without any attempt at price fixing, each person being
 free to determine the v.lue to be given at each price,
 the following shall be the wholesale norices, Der dozen,
 for sale to retailers, and no intermediate prices may be
 used."t

 It will also be necessary to insert into this section the
 list of prices to be included in this rice grouning. If the Code
 Authority feels that it is important to have nrice grouping in the
 Code, they should act on this amendment at once.



 PRICE CGROTJPINGS


 The fixing of a price range by a manufacturer does not in any
way mean the fixing of prices in the sense that it destroys cempe-
tition. There are no two manufacturers who make identical bags,
either in style or materials or in exact value. A price range set
by a manufacturer for his product is absolutely necessary to such
manufacturer, particularly those with limited capital and small
production.

 It is for these reasons the industry, during the past five years,
has become highly specialized as to a particular price range. The
largest number of manufacturers make either one or two price ranges .
 "q
 The largest volume of business in the industry is had by those
who manufacture bags to wholesale at 7.75 a dozen only, and t15.75
a dozen only, and t2?.50 a dozen only. They give the best value
possible at the limit of price thr-t the retailer will pay for a bag
to retail at $1.00, 1.95, or 2.95 respectively. With every manu-
facturer competing on these rice levels competition is based en-
tirely unon value and style. The industry is a highly styled one,
and the manufacturer who guesses wrong on style, color or material,
suffers a loss regardless of the amount cf intrinsic value in the bag.

 To produce a finished handbag reauires the assembling of from ten
to twenty different materials, and the processing requires about twenty
distinct operations. It is important that the Ladies' Handbag Industry
be permitted to have price grounings at which price groupings manufac-
turers will compete on a basis of style, quality and value. Such price
groupings shall be maintained by all manufacturers in the industry.


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