The model stock plan

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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 VII. Making mark-downs pay a profit

Collection:: Economics Books

MAKING MARK-DOWNS PAY A PROFIT 101 unquestionably sell them. If our first mark-down does not accomplish it, we must mark them down once again. It is worth remembering that selling at the first mark-down leads to the least loss. Customers will buy almost any goods if the price is fixed low enough, although once, in the Filene Automatic Bargain Basement, after we had sold many thousands of dozens of men’s collars at our first very low price, then taken three mark-downs to a price only 25 per cent of the first price, we had to give away the 2,000 dozen surplus of odd sizes to charity organizations. And when we repeated the experience on another tremendous lot a few months later, the charities refused to accept any more odd-size collars and we could not find anybody to give them to! But this experience is the rule-proving exception. If we glut our market, naturally we can’t continue to sell indefinitely more of the same goods to the same people. It is, of course, in choosing goods that a buyer discloses whether he has grasped the fundamental of retailing, which is buying for the public. A poor buyer makes his best guesses and lets it go at that. A good buyer, even though he has to guess on his very first purchases, gets the benefit of his customers’ judgment before he goes much further with build- ing up his season’s stock. And the good buyer, consequently, jis to take fewer mark-downs and a smaller total mark-down oss, In stores operated by the commonly accepted methods, the amount of mark-down taken on most merchandise is determined arbitrarily, in much the same manner as prices are ordinarily set. In setting mark-downs the department head ordinarily decides arbitrarily that an $8 price will move these $1o sweaters, or that his slow-selling $10 rugs will sell rapidly at $8.50. From our study of the Model Stock Plan we know that this is not the method that will yield us the greatest total profits. We have seen that we must sell any goods of any single class (except de luxe and basement merchandise) at one of the three full-line prices which our customers will

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