The model stock plan

Bibliographic data

Monograph

Identifikator:: 1820833348

URN:: urn:nbn:de:zbw-retromon-210730

Document type:: Monograph

Author:: Filene, Edward A. http://d-nb.info/gnd/123562244

Title:: The model stock plan

Place of publication:: New York

Publisher:: McGraw-Hill Book Company

Year of publication:: 1930

Scope:: xiv, 253 Seiten

Digitisation:: 2022

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XV. The Model Stock plan makes greater total profits for every business

Collection:: Economics Books

GREATER PROFITS FOR EVERY BUSINESS 223 tion costs, this article need not be a de luxe item. When this manufacturer has built up the capital to safeguard his company against the inevitable reaction of retailers which will seriously cut into his business for two or three years while he is getting established, he intends to go directly into mail selling of his product. From his investigations and his research he believes that when he establishes this new method he can save probably 6o per cent of the present cost to the consumer. If so, the business of his manufacturing company can be tripled or quadrupled within five years. This will reduce still further the overhead per unit of his production and make profitable still lower retail prices. What this manufacturer purposes doing is essentially to apply the Model Stock Plan to retailing his product by mail, because his retail dealers will not apply it in their stores. Because so much waste still exists in retail distribution, such dangers for distributors in all lines and all classes of goods are very great. But these dangers will be minimized or elimi- nated in businesses where the Model Stock Plan principles are energetically applied to reducing the wastes of distribution. It is in this aspect that the Model Stock Plan intimately touches the nation’s banks and bankers. The banker’s business is, of course, to lend out money in such a way that he will get back his capital, with interest, surely and promptly. He cannot afford to take any chances with his depositors’ and stockholders’ funds. No matter how good the character of the borrower, if the borrower persists in doing business on methods that have become obsolete in comparison with those of competition, the banker is not at all sure of being repaid. The old methods, particularly of distri- bution, are rapidly becoming obsolete. Many bankers have lost money because a borrower did not reorganize his business to compete successfully with modern chain-store or mass production. Such a banker does not need to be reminded that the less efficient businesses are rapidly becom- ing poor credit risks. Those bankers whose lendings are in any considerable degree among distributors are finding it

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