MAKING MARK-DOWNS PAY A PROFIT 103 
stock of unusual values better than competitors can regularly 
offer. And this full-line stock includes a full line of sizes, 
styles, colors, materials, and so on. 
To say it another way, under the Model Stock Plan the 
marked-down bargains draw customers to the full lines rather 
than teaching them to buy only advertised bargain lots. 
Thus the mark-down not only moves for us the marked-down 
articles but also sells out a great deal of the stock at the 
full-line prices which has not been marked down. 
The net result is, usually, under the Model Stock Plan, 
that instead of losing money on our mark-downs we actually 
make a net total profit out of our sales at the full-line price 
to which the marked-down goods have been reduced. The 
percentage of gross profit is, to be sure, somewhat less by 
reason of the mark-downs on this part of the day’s or week’s 
sales. But in the long run we doubtless realize an actually 
greater net total profit, because, by the action of the mark- 
downs in selling along with them goods which have not been 
marked down, we avoid having to take, within the next 
week or weeks, other mark-downs from this price to the next 
lower full-line price. And we increase our total sales. 
All merchants and buyers whose experience includes the 
violent post-war inflation and deflation will see another 
respect in which our plan decreases losses and increases total 
profits. With merchandise kept strictly within certain well- 
defined lines, it is possible to determine quickly where the 
danger lies when there are indications of serious price 
changes. 
For example, early in 1920 it became apparent that a 
break in prices, which were then very high, might come. At 
the Filene store in Boston we were able to meet the situation 
effectively.! We ordered that goods at the highest-priced 
full line and de luxe goods be carefully watched. We saw 
that we could insure our safety by selling out everything 
1 As has already been pointed out, so many examples throughout this book 
are taken from this store simply because it happens to be the business with 
which I am most intimately acquainted. But the Model Stock Plan is just 
as easily applicable to any type of business or any line of goods and just as 
profitable when efficiently used.