108 
THE MODEL STOCK PLAN : 
in making the department head take his mark-downs too 
late because he fears to exceed his percentage limit. And 
the unavoidable consequence is that his total of mark-down 
losses is increased. 
It always pays to say, just as soon as the fact is evident, 
“I have made a mistake.” This is what the buyer does 
when he takes a mark-down promptly. And the sooner he 
takes it the less his loss. It is far better business to take a 
mark-down than to resort to “smart” selling to get the cus- 
tomers to accept something that they do not really want. 
In fact, selling customers goods different from what they are 
trying to buy has, quite aside from its ill effect on goodwill, a 
direct tendency to increase mark-downs. For many cus- 
tomers will return their purchases, usually too late for the 
very best selling period and frequently damaged enough to 
necessitate mark-downs of considerable proportions. 
Mark-downs arise from a great many different causes, 
chiefly mistakes in buying. Some of the most important 
reasons for mark-downs are: 
1. Buying more than can be sold, not because the amount 
itself is too large, but because there is no adequate coordina- 
tion with publicity and other selling forces that would sell it. 
2. Buying to fit the buyer's taste rather than the 
customer’s. 
3. Weaknesses in style, materials, workmanship, which 
should have been eliminated before the goods were put on 
sale in quantities. 
4. Soiling, damage, and shopwear. 
5. Attempts to get too high mark-ups. 
6. Prices not in relation to customers’ purchasing power or 
desires. 
7. Interference with timely sale caused by management 
orders not properly conceived or digested. 
8. Competition. 
We must further recognize that mark-downs may be 
divided into two general classes: 
1. Those which occur at regular intervals, primarily 
on seasonal goods.