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Grundzüge der Sozialpolitik

Bibliographic data

Monograph

Identifikator:: 100624364X

URN:: urn:nbn:de:zbw-retromon-33077

Document type:: Monograph

Author:: Merckel, Curt http://d-nb.info/gnd/1024684814

Title:: Der Weltverkehr und seine Mittel

Edition:: Zehnte, durch einen Nachtrag ergänzte Auflage, Sonderausgabe aus dem Buch der Erfindungen, Gewerbe und Industrien

Place of publication:: Leipzig

Publisher:: Verlag von Otto Spamer

Year of publication:: 1913

Scope:: 1 Online-Ressource (X, 981 Seiten)

Digitisation:: 2017

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Landstraßen

Collection:: Economics Books

CHOOSING PRICE LEVELS TO INCREASE SALES 21x of these prices, leaving only the $15 price. We now need to buy 1,200 dresses to sell at our $15 price. We are now able to deal with large manufacturers who make their dresses by mass production; or else we can purchase from smaller manufacturers in the same large quantities and help them attain mass-production economies. If we have any doubt whether we can do this, we can remove it by studying the assortments in one-price women’s or men’s shoe stores, or the one-price women’s dress shops, even at as low a price as $10.75. Nobody who lacks actual experience in this field can easily appreciate how radically prices can be reduced if distributors and producers cooperate sincerely to conquer wastes in production and distribution. If $10.75 dress shops or men’s and women’s one-price shoe stores fail to convince us, then let us have a look at Wool- worth’s, Grant’s, and Kresge’s stores, even if we sell fine goods. From the display counters of these fixed-price chain stores we can get an idea of how prices can be reduced. In every department of these stores—but if we are hurried we can concentrate on the toilet goods section at Woolworth’s— we shall have our eyes opened. We shall see what high- quality goods can, under compulsion, be got down into the cheapest full-line price. If the producer can find no other way to get his high-cost goods into a Woolworth store, he finds a way by diminishing the quantity in the package without tampering with its generally recognized quality. Here is the way it works out in everyday experience with the Model Stock Plan. Let us suppose that our best-selling full-line price for an article is $1. The wholesale price on this $1 article is, let us say, $8 a dozen. Competition will be strong among manufacturers to supply the demand for this article. If supply is larger than demand, the manufacturer’s profit will gradually be squeezed down or out. He will either, in order to get the trade, make a better or more costly article for $8 or else cut his price for the article to, say, $7.50. Assume that, to get a better average profit, a manufacturer makes something to sell against the $8 a dozen article. and

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