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 XV. The Model Stock plan makes greater total profits for every business

Collection:: Economics Books

222 THE MODEL STOCK PLAN problem its facilities for group buying. This procedure promptly transformed these departments into money-makers. In department stores which are being forced into chains, standardized prices and the other methods which are the basis of the Model Stock Plan will be the conquering prin- ciples. They will make possible the most effective combina- tion of their powers. At present almost all of the department store groups are simply aggregations of stores largely lacking the advantages of group mass buying, principally because standardized prices have not been agreed upon. There are still many dangers threatening retail distribu- tion as at present practiced because the wastes are so enor- mous. As we have already seen, prices increase anywhere from 100 to 300 per cent between factory and consumer on the average article sold in stores, and this despite the fact that the average retail net profit is less than 5 per cent, which is certainly not profiteering. N evertheless, the spread is too great to be allowed to continue, because the consumer's dollar is not big enough to stand this waste. The fact is, serious new dangers are threatening retailers on account of these great wastes in distribution which the Model Stock Plan so successfully combats. For example, there is something that within a very few years is going to make serious inroads into the total profits of one whole class of retail merchants who today are utterly unsuspecting. If they were using the Model Stock Plan, this danger would not now be threatening them. The head of one manufacturing company which dominates this field in volume and in quality has told me confidentially that he is only awaiting the building of a greater surplus in his business to take his product away from jobbers and retail stores. His product is in an industry where grades are definitely recognizable, with no possible question of quality arising. Itisnow distributed through a class of stores which, because a large part of their stocks turn extremely slowly and for other reasons, have a very high total store overhead. The product is regarded by the public as de luxe goods but is desired by all consumers. Actually, on a basis of produc-

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