Full text: The model stock plan

The best-selling full line is at the intermediate price at which 
all of our customers buy at one time or another, at which 
most of our customers buy all of the time, and at which we, 
consequently, sell the most goods. 
The average producer makes no particular effort to avoid 
an indefinite number of variations in price. He usually 
makes up his mind what material, style, and kind of goods 
he wants to manufacture. Then he finds out what the 
article so made costs him and fixes his profit on top of that. 
This is exactly the opposite of Ford’s policy which, by his 
own statement, is: “I first reduce the price to a point where 
I believe more sales will result. Then we go ahead and try 
to make the price. I do not bother about costs. The new 
price forces the costs down . .. No one knows what a 
cost ought to be . .. I can make more discoveries con- 
cerning manufacturing and selling under this forced method 
than by any method of leisurely investigation.” 
Of course, customers do not fall into three clearly delineated 
classes by incomes and purchasing powers. If we list them 
in order by actual incomes, we shall find the differences so 
slight that the intervals are hardly perceptible all the way 
from bottom to top of the purchasing power of the masses 
of our customers. Experience has shown, however, that at 
any one time there are certain prices which the public regards 
as the season’s prices. 
If, for our class of trade, the three prices of popular demand 
in dresses, that is, the three full-line prices—the prices at 
which the public demands that the retailer supply the 
best he can for the money—are $15, $25, and $35, then 
customers will come in expecting to find dresses at those 
prices. The advantages of the Model Stock Plan are such 
‘hat the customer on examination will usually find at $15— 
the cheapest full line—almost all the desirable dresses that 
competitors who do not use the Model Stock Plan offer at 
prices up to our best-selling full-line price. Therefore, if by 
any chance she is still not satisfied with our $15 dresses, she 
will generally go to the next higher full-line price, provided 
our full-line prices are right. The customer, for example, 
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