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 VII. Making mark-downs pay a profit

Collection:: Economics Books

MAKING MARK-DOWNS PAY A PROFIT 103 stock of unusual values better than competitors can regularly offer. And this full-line stock includes a full line of sizes, styles, colors, materials, and so on. To say it another way, under the Model Stock Plan the marked-down bargains draw customers to the full lines rather than teaching them to buy only advertised bargain lots. Thus the mark-down not only moves for us the marked-down articles but also sells out a great deal of the stock at the full-line prices which has not been marked down. The net result is, usually, under the Model Stock Plan, that instead of losing money on our mark-downs we actually make a net total profit out of our sales at the full-line price to which the marked-down goods have been reduced. The percentage of gross profit is, to be sure, somewhat less by reason of the mark-downs on this part of the day’s or week’s sales. But in the long run we doubtless realize an actually greater net total profit, because, by the action of the mark- downs in selling along with them goods which have not been marked down, we avoid having to take, within the next week or weeks, other mark-downs from this price to the next lower full-line price. And we increase our total sales. All merchants and buyers whose experience includes the violent post-war inflation and deflation will see another respect in which our plan decreases losses and increases total profits. With merchandise kept strictly within certain well- defined lines, it is possible to determine quickly where the danger lies when there are indications of serious price changes. For example, early in 1920 it became apparent that a break in prices, which were then very high, might come. At the Filene store in Boston we were able to meet the situation effectively.! We ordered that goods at the highest-priced full line and de luxe goods be carefully watched. We saw that we could insure our safety by selling out everything 1 As has already been pointed out, so many examples throughout this book are taken from this store simply because it happens to be the business with which I am most intimately acquainted. But the Model Stock Plan is just as easily applicable to any type of business or any line of goods and just as profitable when efficiently used.

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