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 II. Choosing price levels to increase sales

Collection:: Economics Books

CHOOSING PRICE LEVELS TO INCREASE SALES 17 It is obvious that almost all of our customers buy at $10 at one time or another. While our average and low-income customers both at times buy at $5, there is no demand at that price from our higher-income customers, Similarly, there is only a partial demand at $15. While there is a demand at $3 and $2 5, the demand is limited, Experience shows that § 5, $10, and $13, in this case, are the points at which our full lines would be carried. It shows also that at $3 and $2 5 the demand is insufficient to warrant a full line. The tendency of the customer will be to go for this type of merchandise to a cheaper or to a more exclusive store. We shall meet and profit by this tendency in our bargain basement and in our de luxe departments, which will be described in detail in subsequent chapters.! The three prices, $s, $10, and $15, are the three “full- line prices,” and are known respectively as the “cheapest full-line price,” “best-selling full-line price,” “highest full-line price.” The three full lines at those prices are the “cheapest-priced full line,” “best-selling full line,” and “highest-priced full line.” The Model Stock Plan, in respect to price lines, consists of buying merchandise to sell at three prices for each line of goods.2 The cheapest-priced Jull line is at the lowest price at which any class of goods can be produced and sold, provided the goods are of such good quality that customers will buy them again and again, The kighest-priced Sull line is at the highest price at which their incomes will allow the great majority of our customers to buy. wrest rin If your, store’s trade is not represented by $5, $10, and $1 5, of course your three full-line prices will vary from those used in this chapter for illustration. Use of a basement store to supply trade for prices less than the cheapest full line is explained in Chap. VI, p. 82; use of a de luxe department to supply Chsomers? Tequirzients above the highest-priced full line is explained in p. V, p. 68. oo It will occur to the mind of any experienced retailer that manufacturers? Or wholesalers’ prices are very many; that each has far more than three prices for a single class of merchandise ; and that many of the most desirable items may Jot be offered at wholesale prices that permit retailing at one of our three fuli- ne prices, The Model Stock Plan turns this fact to a more-total-profit advantage, as will be shown on D. 10.

Access restriction

Copyright

fullscreen: The model stock plan

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation