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.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

30 THE MODEL STOCK PLAN Or let us consider an enlightening instance in connection with store statistics and comparative competitive prices which still exists in the men’s shoe department at one metropolitan store. The cheapest full line was formerly $7.50; it has been reduced to $6 and by store statistics looks right; but it is still too high for the store’s trade. In this town are successful Thom McAn $4 shoe shops and many $3 specialty shoe shops. It therefore becomes clear that $6 is not the right price for the cheapest full line! If you and I are already alert, progressive retailers, we may feel that, as yet, there has been disclosed no important difference between what the Model Stock Plan requires and a great many of our established practices. Practically all retailers do actually—perhaps almost instinctively—buy large quantities of merchandise around the few prices for each line of goods at which that line sells in the greatest quantity. The point is that it is in its last § Or 10 per cent of technical improvement over current practices that the Model Stock Plan offers its greatest opportunities to increase total profits. The Model Stock Plan helps us to know that we know. It helps us to analyze what we know and gives us the knowledge which means the difference between the greatese total profits and merely acceptable total profits. Probably, as the new methods of distribution, the new competition, now so clearly on the way become more widespread and effective, this knowledge will mean the difference between success and failure, In setting our full-line prices store statistics and even competitive statistics are of less importance than the beginner at the Model Stock Plan might think. It is clear that regardless of what we have been selling or what com- petitors have been selling, the cheapest full line is made by production costs—by what we can buy it for. t In the store in question, the competition on these cheaper shoes is being met in its very successful basement store. But this does not alter the fact that the cheapest full line of the main store is improperly set. And if this store were not equipped with a better than ordinary basement store, its loss of sales volume from this cause would be serious.

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