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 XI. An entire stock of bargains

Collection:: Economics Books

154 THE MODEL STOCK PLAN that the Model Stock Plan will bring us greater total profits than we could get by using out-of-date methods. OQut-of- date methods can only result in reducing the total profits. The records, then, cannot possibly show the buyer the details of the style features involved. They cannot show him whether all his garments are still in the height of fashion. They cannot show him whether they are still worth the price at which they were originally intended to sell. It may happen that on going over his merchandise he will find some of the coats he bought a month ago to sell at $50 are quite similar to those being offered by manufacturers today at a price which would make them sell for $42.50, which means that they are worth to him the next lower full-line price, say, $40. His records will not show that fact. They will show the coats still worth $so. Furthermore, on going into the market with a clear, fresh picture in mind of what his stock actually is, he will judge better the offerings of manufacturers. Again, he may see a coat at a price to retail for $42.50 that he is carrying in stock to sell for $s0. He knows that his competitors will eventually be selling this coat for less. If he is wise, he will at once mark these $50 coats to his next full-line price, $40, thereby not only selling them more quickly but also creating a greater demand for them so that he can perhaps place a large order that will enable him to sell them for $40 at a profit. Thus his total profit on the coats may be larger than if he had slowly sold out only the first lot at $50. By examination of his stock records the buyer may see that $40 coats are needed, and that he has plenty of coats at $30, his next full-line price. On actual inspection of the merchan- dise he may see that his $50 coats are really worth only $40 at today’s prices, that he should mark them down to that figure, and, in reality, should buy not $40 coats but $30 coats, because the mark-down would fill his need at $40, leav- ing him an undersupply at $50. By this time we are certainly ready to agree that buying well under the Model Stock Plan is an orderly, scientific process. It is not based on opinion or inspiration. The

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