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

CHOOSING PRICE LEVELS TO INCREASE SALES 33 requires. In determining our prices we have the biggest lever in determining our profits. If the price is right, there comes direct saving in publicity and sales effort all along the line. For a rightly set price has innate virtues that do not have to be extravagantly “pushed” to be recognized. If the prices are set at wrong levels, not only may we be misled but also the whole Model Stock Plan may be prevented from functioning in the most profitable way. Aside from the effect on customers of offering less attractive values, since under the Model Stock Plan selling price determines what we shall or can buy, if we have a price that is 10 per cent too high, we lose the valuable stimulus of having to work hard to get into our three price levels goods that, as yet, are just beyond the reach of our fixed prices and so beyond the maxi- mum mass-purchasing price of very important numbers of possible customers. The prices of full lines need to be reviewed every season. Any one of several sets of conditions may alter them. No set of prices should be carried over to a new season unless we can prove that more merchandise is being sold, and should be sold, at those prices than at prices a little higher or lower. There are, however, only two basic reasons for changing Properly set full-line prices: I. A radical change in the purchasing power of the community that we serve. 2. An important change in the value of the money with which it buys. Changes in the value of the commodity itself can be met by giving a better or less value for the same price. Of the fixed-price-level merchandisers, Woolworth’s is Certainly the most conspicuously successful. It is worth remembering that Woolworth’s stores held firmly to their five- and ten-cent prices throughout the war and the post- war inflation. Unquestionably it is to the advantage of a business that the full-line prices remain unaltered from year to year. A business may thereby acquire a ‘trade-mark’ value on its

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