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

104 THE MODEL STOCK PLAN above our best-selling full lines, taking the early mark-downs which were likely to be the smallest. It proved highly profitable. If we had not had a carefully worked out merchandising plan with consistent price lines in all departments, we should not have escaped so easily as we did. We should have had to find out first, in each of the many departments, just where the danger zone began. Even then we should not have been sure there were no grave mistakes. Under the Model Stock Plan it pays fo fake mark-downs early. Mark-downs from one full-line price to the next lower act to prevent or af least lo reduce the necessity of having to take mark-downs at this next lower full-line price. An additional advantage from the Model Stock Plan method of marking down without a net loss is that clearing out goods promptly at a mark-down, when market conditions change, results in leaving the businessopen to buy at the most favorable time for replacing these goods. This is equally true of selling out all our goods early enough in the selling season to leave us open to buy at the time when we still have a great deal of retail demand and when manufacturers are for the first time actually sure which of their style models are successful.! This is also the time when manufacturers are in need of orders and, therefore, gladly make quick deliveries at attractive prices to keep their organizations together and to reduce their per unit overhead expenses. As a consequence of all these advantages we shall find our- selves feeling at liberty to use mark-downs more freely under the Model Stock Plan than under our former method of merchandising. But, paradoxically, by feeling free to use them more freely and taking the substantial reduction required to reach the next lower full-line price, we shall find that our total mark-downs aggregate less than before. The reason for this decreased loss is, of course, that taking mark- downs early and taking them to full-line prices does away 1 This whole subject of the more-profit time to buy is discussed fully in Chap. X. D. 127.

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