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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. The more-profit time to sell - the selling calendar

Collection:: Economics Books

THE MORE-PROFIT TIME TO SELL 133 we shall have little need to worry. We can then count on making ours the fastest growing store in the community and earning much greater total profits. Happily, a complete stock is not necessarily a large stock. A right Model Stock is, in fact, likely to be a smaller stock than the same store carried before. But a Model Stock must be a more complete stock; and such a complete stock pays us greater total profits. Suppose that before we adopt the Model Stock Plan we carry five price levels in a class of goods; mind you, most stores carry far more than this. There are also five style divisions in this class of goods, five colors, and five materials. Then the total possible combinations would be 5 X 5 X 5 X 5, which is 625. If each of these 625 items must be carried in a full assortment of sizes, no store in the world has the resources or the trade to make such a full stock sell quickly enough, turn often enough to avoid obsolescence, and show a net profit. By reducing the price lines to 3, we cut the possible varieties to 375 before size variations, which leaves a theoreti- cally complete stock still beyond our reach. So, in actual practice, neither we nor any other retailers can carry a theoretically complete stock. Instead, we strive for what might be termed a “commercially” complete stock; that is, we select from a theoretically complete stock those items which we have reason to believe will best fit our customers’ requirements and carry those numbers in stock. It is impossible to do business on only one style, one color, one price, one material to suit every taste in dresses.! But the closer we can approach this situation the better. When 1 Perhaps the closest approximation in the field of women’s clothing is any one of the so-called “sample dress shops,”? which confine their operations to a misses’ size 16 and women’s sizes 36 and 38—the three sizes at which the largest number of sales can be made. These shops cheerfully forego all sales to women of other sizes for the sake of doing business on smaller, fast- moving stocks. Women’s or men’s hats at a single price but with a wide variety in sizes and styles is another form of the same thing. And the post few years have witnessed a startling growth of chain stores that retail all their suits and overcoats at a single price. The Richman chain of men’s clothing stores is the outstanding example, selling at $22.50 topcoats, ulsters, all types of overcoats, sack suits, tuxedo suits, full-dress suits, cutaway coats with striped trousers—all for the single price, resulting in extraordinary total profits and steadily growing sales volume year after year.

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