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 Iz agencies of distribution’ —unless these other agencies adopt the Model Stock Plan. If the chains take away a large percentage of business, the overhead of the remaining departments, larger already than that of the chains, becomes still larger. Lines of goods not especially attractive before to the chains now become attrac- tive, therefore, as they are brought into the range where the chain stores can undersell the independent store. Unless independent stores adopt methods to meet and beat this com- petition, by far the greatest part of the independent mer- chants must succumb to chain stores operating in their own fields. Plainly, independent retailers are taking a dangerous chance by merely waiting, doing nothing effective about it. If this is continued the chains will eventually sell all lines of goods that independent stores are carrying. The Model Stock Plan enables us, through added efs- ciencies in retailing, to beat chain and other competition and make a profit, even though the competition may be an organ- ization of greater buying power. Hard as this is to accom- plish in the face of some competition today, it is nevertheless perfectly possible, as we shall see. Distribution charges, in general, double the cost of goods from producer to consumer. Sometimes the price triples or quadruples. This does not mean retailers are profiteers, for their net profits average less than 5 per cent. But it does mean that an indefensible increase occurs between production cost and what the consumer pays, due to prevent- able waste. Distributors must bear in mind that unless they conquer this waste they will be replaced: 1. By others who can conquer it, or 2. By direct distribution of mass producers whose success has come by conquering the wastes in production and who, therefore, cannot let these gains be canceled out by wastes in distribution. There is no excuse for excessive distribution charges amounting to colossal wastes. Distribution adds not one "In 1978, for the first time, the total sales of chain stores exceeded the total sales of department stores in the United States

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