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

WHAT IS A MODEL STOCK? 43 in the dull seasons, we could order from small manufacturers in quantities to take an important part of their output and relieve them of traveling and other selling expenses. Thus we were able to get even $11 and $12 a dozen qualities at such a price that they could be sold profitably for ¢8 cents apiece. We began to extend the same idea to the highest- priced full line, where we found an opportunity of the same sort among garments with laces and embroideries. The final outcome was mass selling at the three full-line prices. The total volume of sales became so much larger that the overhead of this department was reduced propor- tionately. It helped to lay the foundation for our store’s growth. Of course, the BB’s, which were the greatest attractions of these full lines, would not suit all of our customers. Many wanted more staple goods, some wanted oddities, and others the many different varieties that go to make up a complete stock. We found that we increased the sale of these other kinds of goods very greatly, also, as part of the full lines in which we had BB’s and by this increased the sales of the department. It requires a sympathetic study of customers’ wants, a thorough knowledge of competitors’ offerings, and a fair comprehension of manufacturing conditions to develop with a manufacturer a BB that will withstand competition for a worthwhile time. True, a competitor may meet the price of an article like this; it takes only a blue pencil to meet prices on identical merchandise. A well-developed BB; therefore, must embody some element of additional value that has been built into the article by unusual cooperation with the manu- facturer so that competitors meeting the price will not immediately destroy its value. If a competitor meets a BB simply by reducing the price, he must take a loss which he must then make good by increasing the price of other goods. Thereby he causes himself trouble in the long run and weakens his competitive position. When, however, he meets a BB by providing an equal or better item at an equal or better price, using our

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