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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter II. Choosing price levels to increase sales

Collection:: Economics Books

CHOOSING PRICE LEVELS TO INCREASE SALES 23 The buyer with the Model Stock Plan knows that he ought not try to get $1.25 for the article. If he cannot buy it for $8 he will perhaps pay $8.50, if it is sufficiently attractive, and still sell it for $1. Undoubtedly he will be able to buy it for $8 in a very short time if he can place orders for large quantities. Moreover, if by the Model Stock Plan he has largely increased the amount of this article he can sell, the chances are that he will, before long, buy it for even less, as the manufacturer is enabled to lower his cost by production in larger quantities. Nevertheless, he will not delude him- self, in any event, by buying to sell at a price which the average customer does not want to pay. Right here it is worth pausing to point out that we shall not, under the Model Stock Plan, do anything to harm the producer. It is most shortsighted to cut the producer’s profit unduly or unfairly. The price we can pay for our merchandise is predicated on the assumption that the pro- ducer has eliminated waste to the greatest practical degree; if he wants to use our volume as a means to eliminate this waste or to eliminate some of the costly hazard in his style production, he may be willing to make us a mass-production price on mass quantities before he has achieved his mass- production economies. As soon as he has attained these economies, it is for our interest, as distributors, to help him earn a profit, so that he can, by his constantly growing experience and by reinvestment in equipment, cut out still more waste. There is no profit for the distributor in having the producer lose money. In the long run, the distributor and the customers have to pay for any such losses. How does this affect our goodwill? Simply that when we are using’ the Model Stock Plan scientifically, people, attracted by style novelties to the higher-priced stores with prices perhaps beyond what they want to pay, will soon learn that they can very often find the same thing in one of our full-line prices or, in any event, the same style in satis- factory merchandise of less expensive quality. Many an experienced merchant or department buyer does not believe it is possible to do all of his business on a single

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