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 I. The way to greater total profits

Collection:: Economics Books

THE WAY TO GREATER TOTAL PROFITS 0 stock of one of his departments. If he has too many lines in a department, it is manifestly impossible for him to keep an assortment of all sizes and styles in each color. Such an assortment would mean a stock so large that any profit would be swallowed up in the depreciation of the goods through too slow a rate of turnover. Moreover, he would not be open to buy the desirable newer styles as fast as they are being produced. The second essential of goodwill is price—price that is both good value and what the customer is willing to pay. We shall not increase the goodwill of a store very much if we carry no dresses at less than $500 each, no shoes at less than $100 a pair, no furniture at less than $1,000. We must have prices that are within the reach of the customers we are catering for and that fit their ability to pay. This seems so obvious that it should be unnecessary to say it, but any examination will show that some of the greatest mistakes of business are made along this very line. Prices are most often set by tradition, sometimes supported by incomplete and fallacious store statistics. A Model Stock is, of course, priced scientifically and, when this is properly done, at exactly the right levels. Perhaps a better name could be found for the Model Stock Plan. “Plan,” by its common business usage, rather smacks of a system, of a succession of printed forms. The Model Stock Plan is truly a set of practical business principles that makes more profits for those who use it. Where it has been accepted as a set of principles of which forms and statistics are merely helpful tools, it has uniformly succeeded. In some businesses of sufficiently simple organ- ization, the principles have paid huge returns without the use of such tools. Ford’s billion-dollar fortune has been based on the idea of giving a whole stock of bargains profit- ably priced below general competition, a complete line in a limited price range. This has required thinking rather than systems, for a line of automobiles is simple to merchandise in comparison with a department store stock. But where anyone has taken the tools of the Model Stock Plan

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