CHAPTER VII 
MAKING MARK-DOWNS PAY A PROFIT 
The Model Stock Plan actually enables us to profit by our mark-downs. 
Customers will buy almost anything at a low enough price. Selling at 
the first mark-down leads to the least loss. Mark-downs to next lower 
full-line price draw trade to that full line and increase the total sales and 
total profits. It pays to take mark-downs early and freely under the 
Model Stock Plan, thus turning an apparent loss into an actual gain. 
Mark-downs and the selling calendar. Mark-downs as a check-up on 
price levels. Never try to limit mark-down percentages. Eight major 
causes and two major classes of mark-downs. Research to decrease 
mark-down losses. 
THERE is no time when people will not buy goods at some 
price. There are practically no goods that people will not 
buy at some price. On these facts are based the whole set 
of principles and practices that center around the mark-down. 
The mark-down, as we know, is one of the most important 
factors in our struggle to gain the greatest total profits from 
merchandising. Only those who know the actual figures on 
losses occasioned by mark-downs, especially mark-downs 
of style goods, realize how tremendously important it is. 
In every retail selling price is included a percentage which 
might accurately be labeled, “reserve for mark-downs.” 
This item alone adds huge sums to retail prices throughout 
the nation’s stores. 
The customer passes final judgment on what a store offers. 
If all the goods in our stock are exactly suited to the public’s 
tastes, income levels, sizes, and buying capacity, then we 
may conceivably—and altogether theoretically—emerge 
at the end of the season without having had to take a mark- 
down on anything. If some parts of our stocks have not 
been so skilfully selected, or if demand has unexpectedly 
declined, we shall mark the goods down in the effort to make 
them attractive to our customers. And we are rarely sure 
that we mark them down the first time to the price that will 
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