MORE PROFITS FOR PRODUCERS 191 
it is more profitable for manufacturers to produce goods at 
standardized prices, just as it is more profitable for retailers 
to offer them to their customers. 
The mill has made up standard assortments for stores of 
different sizes. For the medium-sized department store 
doing a sales volume of $20,000 to $30,000 a year in these 
products, the standard assortment with a total investment 
value of $3,500 is divided: $2,500 for towels; $750 for bath 
mats; and $250 for wash cloths. For smaller stores a stand- 
ard assortment valued at $1,800 is divided as follows: $1,250 
for towels; $350 for bath mats; and $200 for wash cloths. 
Actual stocks carried by each store are suited to its individual 
needs. Stores carrying a standard assortment may reorder 
in the exact quantity of each style and color sold and not in 
case lots of zo or 100 dozen as has been necessary in the past. 
Case 5. RovAL WORCESTER CORSET COMPANY 
In 1929 the Royal Worcester Corset Company adopted a 
model stock plan which, like that of Brown Durrell Company 
for Gordon Hosiery, is based on a statistical study of the 
market—in both instances, feminine proportions—whereas 
most model stock plans advanced by manufacturers are 
based only on an analysis of sales. The company’s figure 
type chart gives a scientific basis for the model stock. 
The retailer sends in monthly a detailed inventory of the 
garments on hand as a check on his daily or weekly reorders. 
The manufacturer analyzes each inventory and determines 
the significant facts. Within a week the monthly analysis 
goes back to the dealer, with merchandising suggestions for 
special sales effort on slow-moving styles, types, or sizes; 
recommendations for increasing or decreasing the unit of 
stock per style or size; and authorization to return certain 
styles or sizes that are seriously affecting turnover for 
exchange for more salable styles or sizes, or for newly released 
merchandise.! 
1ltis interesting for any retailer who examines these plans to notice in how 
many instances the manufacturer has, of his own volition, gone further in 
concessions to the stores than any storekeeper would have dared ask. For 
example, the replacement of slow-selling goods with new, wanted goods. The