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 XIV. Helping producers eliminate waste

Collection:: Economics Books

HELPING PRODUCERS ELIMINATE WASTE 20:1 will almost always be, in total, an order of mass-production size. It is principally because such savings are possible only on large orders that a great many small retailers, who today have no idea of entering into group-buying arrange- ments, will be forced to enter buying groups within the next few years, or else lose their businesses to the more modern, waste-saving forms of distribution which will soon be an even more intensive competition than they are today. We have already touched briefly on one respect in which the savings of large quantity orders may be practically drawn against in advance under the Model Stock Plan to improve the values we offer our customers. It will bear repetition and amplification here. When we are undertaking the development of a BB, we may, at the beginning, need to sell it very close; to a less degree the same situation may arise in getting into a full-line price any article that is a little beyond our cost limits. If we offer the BB or other full-line article at a price which, at first, yields us an inadequate profit, it will be such an outstanding value that customers will buy it in very large quantity, not to mention the trade that will be attracted thereby to other more profitable items in the same full line. As we increase our sales of the item in this way, we shall unquestionably find it possible to get the article from the producer at lower and lower costs, as the larger orders permit him to save in his factory. As we repeat this process on various items with a given resource, we are likely to find him willing to assist in the more rapid development of additional items by sharing in the early losses with full assurance that he will soon be getting the orders in large enough lots to yield him as well as us an adequate rate of profit. All of this reasoning is simply good sound business sense; for this is a basic strength of the Model Stock Plan, that it fits together into a common interest what are too frequently assumed to be the divergent or antagonistic interests of the buyer and the seller. The Model Stock Plan shows us in actual practice that the resource profits most by selling the retailer only those goods which he feels sure will yield the

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