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 III. What is a Model Stock?

Collection:: Economics Books

WHAT IS A MODEL STOCK? 43 Four basic principles govern the whole subject of BB’s in the Model Stock Plan. They are: 1. There shall be at least one BB in each full line. 2. Theoretically, at least, there should be in each class of goods a BB so distinctive that a customer will not be forced to buy another class as an alternative, so distinctive that we shall not lack a real measure by which we can build up the rest of the line of this special class of goods. 3. Following Rule 2 may at the beginning, at least, necessitate so many BB’s as to make the management doubt- ful whether they may not cause losses—that is, may not sell too many goods at too close a margin of profit. 4. Tt should first be determined, therefore, whether a BB must necessarily be sold at too close a profit. If the type of competition is such that it must be sold at too little profit, then the number of BB’s can be limited, with a mini- mum of one for each full line, and with a clear understanding that Rule 2 is to be applied to the fullest practical extent if the greatest total profit is to be obtained.? A BB cannot be had for the wishing nor, as a rule, merely by scouring the market for bargains. Competition can seldom be profitably outdistanced so easily as that. Con- structive thought must be put into the development of each real BB, a sympathetic understanding of customers’ probable wants, a thorough knowledge of what competitors are offer- ing, a fair comprehension of the conditions under which the store so much better that goodwill is built that will probably attract the customer to the store every time she goes shopping. Also, it makes it possible for the manufacturer to increase production by reason of our larger purchases, and thus to pull down his prices and still make a good profit on his sales to us. ? This question of reducing the number of BB’s must be handled with some care, because if we maintain a BB in one full line it may have no effect at all on the other classes of goods in that full line. The buyer should have in mind that a BB gives a standard by which to shop and to measure all the other goods in that line; that, also, it is better advertising to get a BB intoa customer's possession than it is to spend increased sums in bargain adver- tising; that getting such a BB into the home where it is shown to friends and other members of the family is really the most effective form of advertising. Thus we see that the BB opens up advantages that make up for the occasional necessity of having to sell it too close. We can help our manufacturer make such savings in waste that we can undersell our competitors without too small a profit.

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