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 III. What is a Model Stock?

Collection:: Economics Books

10 THE MODEL STOCK PLAN however, is great. Since they demand considerable dis- cussion throughout this book, they will be designated by the initials to which they are always abbreviated in store jargon: “BB” is the Best Buy; “MP” is the More-Profit Item. The BB is the best value in our city at the price. The MP is a more profitable item which, at the same price, will sell in at least equal quantities with the BB. The first measure of a BB is quality; it should be bought with the full expectation that it will carry less than the usual profit if bought in the usual way, because if we offer the best buy in the city and have bought it in the usual way, the same as our competitors buy it, then we must cut the profit to make it a BB. If we help the manufacturer to produce in larger quantities by placing large orders, however, and help him—as we can help—to reduce the great wastes that still exist in his expense of producing and selling, the saving will enable him to put additional quality into the article to make it a BB or profitably to reduce the price of a higher-priced article so as to bring it to our full-line price. In the MP there must be something that will cause it to sell in at least equal quantities with the BB. But it should cost substantially less than the BB, Offhand we might assume it would be hopeless to try to get articles so different and yet sell them side by side in large quantities at the same price. Why will not every customer take the BB? Why will some customers prefer to take an article of less intrinsic value that carries more profit for us? Now, in fact, a perfect stock of merchandise would be an entire stock of “bargains.” This is not in practice possible. But it can be, and in experience has been, approached much more closely than most of us now think possible. If we have something closely approaching an entire stock of bargains, then the MP is not necessary. For from such a stock we shall sell such a tremendous volume of merchandise, and our BB’s will constitute so small a proportion of our total sales, that the shrinkage of our percentage of gross profit due to sales of BB’s at a narrower than ordinary margin will be relatively inconsiderable.

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