The model stock plan

Bibliographic data

Monograph

Identifikator:: 1011857022

URN:: urn:nbn:de:zbw-retromon-41419

Document type:: Monograph

Author:: Drahn, Ernst http://d-nb.info/gnd/116194588

Title:: Marx-Bibliographie

Place of publication:: Charlottenburg

Publisher:: Deutsche Verlagsgesellschaft für Politik und Geschichte m.b.H.

Year of publication:: 1920

Scope:: 1 Online-Ressource (59 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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

BASEMENT STORES FOR THRIFTY CUSTOMERS g¢3 The great danger is that buyers are often tempted by immediate profits to depart from the sound basic principles of the automatic plan. One of the commonest happenings in business is to see men do things for immediate profits that interfere with the basic organization and principle that would in the long run make ten times as much profit and directly increase the goodwill of the business still more. The automatic bargain basement plan is good only if it is carried out scientifically to allow the automatic adjustment of the buying to the most profitable times to buy. This means that there should be no reserve stocks at all, no hold- ing stocks back to avoid proper mark-down losses. Holding stocks back is a natural tendency induced by the desire to make greater immediate profits by putting only a small part of a purchase on sale at one time and thus avoiding the automatic mark-downs that might be necessary. Actu- ally, this does not lead to the greatest total profits because failure to take the losses prevents the automatic adjustment of stocks. And this automatic adjustment of stocks is what leaves the store open to buy at the most advantageous time for buying. Always there is this danger that some buyer eager for immediate profits will want to hold large reserve stocks simply to permit purchasing large stocks without incurring the possible large mark-downs which under the full function- ing of the plan might—and should, for greatest total profits— be incurred. If such procedure is permitted, the buyers will put into forward stock only the amounts that they can be almost sure of selling out inside two weeks; thus they take no mark-downs. And the rest of their merchandise is left in reserve stock. When abused in this way, the automatic plan loses its greatest value because this practice slows down the basement store’s rate of turnover, decreases sales volume, and often ties the store up with such large reserve stocks that the buyers cannot be open to buy even extraordinary lots. There is great profit-making value to a store in being known as always open to buy any extraordinary value.

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