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 XVI. The most important job in distribution

Collection:: Economics Books

234 THE MODEL STOCK PLAN sufficiently to increase sales to the point where they will keep his salespeople busy more of the time, and where, con- sequently, he will make greater total profits, The experienced merchant will probably say that the department head will not gain any advantage from this; that, instead, he will be starting a price war, for all of his important competitors will meet his new prices. The answer to this objection is that at present only com- petitors who are well located centrally can profitably continue to sell staples at smaller than usual unit profits. Actually, it is to the interest of our store as well as of competing stores to do this. Nothing else will so definitely draw crowds of customers to any retail district as having all of the stores selling a volume of staples at the lower price and continuing to do it because it pays. Such selling of staples at low prices, drawing greatly increased numbers of customers to our general location, will increase total sales and total profits for all of the central stores. As we have already seen,! good hard competition increases total profits for every well- operated store engaged in this competition by drawing trade from less active competitors and from other trading centers. This is an instance of how, operating under the Model Stock Plan, we can profit in collateral ways. Then, too, there is another possibility in handling our novelty lines. Of course, novelties ought to turn as quickly as possible, the quicker the better. Under the Model Stock Plan we shall find it most desirable to determine accurately, with the best facts possible and the best judgment on these facts, how long novelties shall be kept. Losses on novelties are not losses in money alone. Quite as important are the store’s losses of reputation that come from not having newer goods that should succeed the novelties on hand, and such losses of reputation seriously impair sales volume. It is probable that some method like the automatic bargain basement plan might be used, with predetermined times for YE Sram impress * The actual dollars-and.cents value of brisk competition as an aid to increasing our total profits‘is explained in some detail in Chap. XI, p. 1z0.

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