Allgemeine Gesellschaftslehre

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Monograph

Identifikator:: 1823562132

URN:: urn:nbn:de:zbw-retromon-217461

Document type:: Monograph

Author:: Sander, Fritz http://d-nb.info/gnd/140473750

Title:: Allgemeine Gesellschaftslehre

Place of publication:: Jena

Publisher:: Verlag von Gustav Fischer

Year of publication:: 1930

Scope:: XVI, 572 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:: VI. Die Macht

Collection:: Economics Books

22 THE MODEL STOCK PLAN lists it at $9, making it as attractive as possible but keeping it more profitable for himself than the $8 article. His argument to buyers is about as follows: “See how much nicer this is. It costs only 8 cents apiece more. You can sell it sasily for 25 cents more. So it’s more profitable for you.” The argument sounds convincing. It would be, but for one thing: the retail demand actually bulks at the $1 price. Nothing that the manufacturer does will materially alter this fact. The mass demand for that line centers on $1 goods and not on goods priced at $1.25 or even $1.1 5. If theretailer buys heavily in the $9 line as a result of the manufacturer’s persuasion and marks the article at $1.25, it is certain that the goods, or a considerable portion of them, will have to be marked down finally to $1. Now, with the Model Stock Plan, the buyer, when he is shown the $9 article, knows he can sell it readily for $1 but not for more. Moreover, he knows that if he can get it to sell for $1 he will sell not only the article itself but also an increased quantity of the other $1 goods of his best-selling full line; for it is impossible to satisfy all customers with one style. Therefore, he will do what the average buyer does: that is, try to buy the article for $8. But there the resem- blance will cease. I know from experience that the average buyer, finding a good deal of resistance to a price reduction, will often be satisfied with the argument that he can get $1.25 for the article. After buying and trying to sell at that price, he will finally be forced to take mark-downs, because he has gone counter to the real buying demand of the masses of his customers. Even if he is successful in selling fair quantities of the goods at $1.25 by supersalesmanship and super- publicity, he is hurting the goodwill of his business in selling them and making less total profits with a great deal larger expense than if he fitted his selling into the stream of his customers’ demands. He has erred by allowing himself to be influenced more by a manufacturer's desire to sell at a given price than by the group desire of customers to buy ata given price.

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