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 III. What is a Model Stock?

Collection:: Economics Books

42 THE MODEL STOCK PLAN able of itself even though its percentage of mark-up is comparatively low. A real BB turns over more rapidly, leaving satisfactory dollar profits even if the percentage profits should not seem satisfactory. If the MP does not sell well, there can be only one conclusion—we have not put enough applied science or applied art into it, we have not obtained the best MP we could get and should get. The mark-up of the BB may have to be kept smaller until the full development and a better understanding of the Model Stock Plan give us the full power behind the idea. By then, we should be getting our BB at a price that yields us a full percentage of profit. Our object in having a BB is partly to gain goodwill by furnishing our customers the best value at the price to be had in our city and partly to have the best possible basis of comparison in buying the rest of our full line. There may be circumstances, however, where for certain types of merchandise a BB must of necessity be sold at an extremely close profit, due to the type of competition on that particular article. In a circumstance of this sort, the answer is not in excluding the BB from this type of merchandise but rather in planning and developing two or perhaps even three MP’s to counteract the effect of one extraordinarily low-margin BB. This, of course, does not mean an indiscriminate loading of a line with MP’s but rather a careful balancing of the BB against the MP’s, consistent with good values and a reasonable profit for the entire line. Also, of course, it means that it will pay us to put additional thought into the rest of the line so as to make all of the lines still more effective. If necessary, the BB rate of mark-up may be less at the beginning of the season than later. We must, however, work away from the idea of considering a BB bait to lure the customers into the store.l 1 Spasmodic bargains to tempt customers by prices that are temporarily low are bad business, unethical, unscientific. They teach customers to wait for advertised bargains and to deal only with stores when ‘sales’? are announced. The BB, on the other hand, educates the customer to realize that the store always has bargains; and when it is used for internal store comparison, as is explained on p. 46, it serves to make values throughout

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