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 23 line prices those articles which cannot immediately, in spite of our utmost exertions, be bought to sell at the full rate of profit at the full-line price. Under traditional methods, these items would be marked at in-between prices to yield the planned profit of the department. By our plan, even though these goods might have to be sold at a smaller per- centage of profit at the full-line price, it can be seen at once how much better it is to draw with special attractions to a full-line price where the customer will find an incomparably better assortment than competitors have at the advertised special bargain price for which she comes into the store. No experienced retailer believes he can sell all customers from advertised lots; there are too many variations in desires as to style, color, and so on. But at the full-line prices we are almost sure to have a stock adequate to meet these variations in desires. Another real advantage of having three scientifically set price lines has to do with the trend toward mergers, consolida- tions, the formation of voluntary chains, and buying groups. The time is coming, and soon, when practically every store will be forced by competition to avail itself of the buying advantages of some one of these modern merchandising forms. But as all of us know who have had any experience with group buying, the greatest handicap to its proper functioning is the difficulty of agreeing on the prices that goods are to be boughttosell at. Togettheadvantageof mass buying, orders must be large enough to permit the manufacturer to make mass-production economies. In group buying such orders are generally possible only if all of the member stores agree upon the three factually determined price levels for each class of merchandise. So if our store operates on three price levels properly set under the Model Stock Plan, we are in the best possible situation to band ourselves with other Model Stock Plan stores to get the greater profits attainable from consolidating the orders of many stores. Let us now tabulate the major more-profit advantages from using the three full lines of a Model Stock:

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