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 II. Choosing price levels to increase sales

Collection:: Economics Books

16 THE MODEL STOCK PLAN hat for ordinary everyday wear. For the purpose of illustrat- ing the principle, this price is as good as any. Perhaps your trade falls at a higher or lower level. Perhaps you do not deal in hats, but sell radio receiving sets or furniture or any- thing else. The example is just as good as though it were selected to fit your particular price level or your particular type of merchandise, for it serves to illustrate the principle. Our average customer, then, buys a $10 hat for everyday wear. But there are times when she wants a hat a little better than ordinary, it may be to wear to an elaborate luncheon or simply because she feels more prosperous than usual. So she wants to pay more, perhaps $15.2 Conversely, she may want or be obliged to economize. Under these conditions she pays less, say, $s. The exact figures are important in operating our store; but in explaining the method, these arbitrary figures will serve to illustrate the point. Our average customer pays in the main, therefore, three different prices for hats accordingly as she wants something inexpensive, for everyday wear, or for best. She behaves similarly in respect to every class of poods, whether it is shoes at $5, $8, and $12, or cloth coats at $25, $40, and $60. Our customers are not all of one income class, however. For our more prosperous customer a $15 hat is for everyday wear, a $10 hat inexpensive, a $25 hat best. Our less pros- perous customer considers a $10 hat expensive, a $5 hat for everyday wear, a $3 hat cheap. Let us tabulate this to visualize the demand: Low-income customer... Average customer.............. Hicher-income customer... [Inexpensive $3 5 ra Everyday $s | eo Best 10 bre 25 1 Actually, a good many of our customers will wish to pay more than $15. The best and most profitable way of handling this situation will be dealt with subsequently.

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