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 I. The way to greater total profits

Collection:: Economics Books

THE WAY TO GREATER TOTAL PROFITS 7 applies them to handling merchandise at very low price levels. Manufacturers make satisfactory profits selling Woolworths, to retail at five or ten cents, goods that inde- pendent retailers often have to sell at double or treble the rice. P Products in the higher-price ranges actually offer op portuni- ties for far larger proportionate savings. This field is almost untouched. Imagine the profits to our store of being in a situation com- parable to Woolworth’s; our resources will know that we are always open to buy goods of exceptional value in three retail price lines for each class of goods, all higher than Woolworth’s. Obviously, we can make more savings and more total profits in the higher-price lines than on the same number of transactions in five- and ten-cent merchandise. In this book we shall see how to use a merchandising plan which corrects one of the greatest weaknesses of distribution, namely, that of depending upon special bargain lots instead of depending upon the whole stock being right. A Model Stock is a whole stock of bargains, in the sense that a more than ordinarily good value is a bargain. It offers a complete stock at three standardized prices, a stock that sells more goods more profitably than any incomplete, less carefully selected stock even twice or three times as large. How and why this is true we shall see as we absorb the facts brought out clearly in this book. If a store tries to spread its stock over too big a price range—the same thing, in slightly different terms, applies to manufacturing or wholesaling—it meets two outstanding difficulties: First, the store loses sales because its stocks cannot be really complete if they are scattered over too big a price range. Second, if the retailer tries to carry enough stock to avoid losing sales, he has too many leftovers and too slow a rate of turnover for the greatest total profits. Consider, for instance, the number of items—sizes, colors, materials—necessary for a complete stock even at one price

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