CHAPTER IV 
HOW TO PLAN AND CONTROL A MODEL STOCK 
Modifying stocks constantly to meet customers’ demands. Planning 
ahead to avoid overstocks. Nine aids to good buying. Mass buying 
brings mass selling. The three parts of planning. Nine forecast 
figures. Building the stock to Model Stock requirements. The Model 
Stock Plan forces mass distribution. Making accurate written plans. 
No ready-made forms. The most profitable stock on hand at any 
time. A record of profits from each producer. The open-to-buy 
analysis. Call slips. Buying for the public. Competitive troubles 
threaten the business where knowledge of distribution is not growing. 
WaAT constitutes the most profitable stock on hand or 
Model Stock at any given point in time? Upon this ques- 
tion more than any other hinges the success of the retailer. 
To maintain a Model Stock the executive must operate 
according to the general principles already explained in this 
book. When he understands these simple principles, he 
comes to the place where he can begin to profit by putting 
them to work. As a direct sequence of the principles, he 
makes his plans and is thereby greatly helped to exercise an 
effective control. 
See how simple it is to use the Model Stock Plan effectively: 
1. Decide on the three full-line prices for each class of 
merchandise. 
2. Buy a BB for each full line. 
3. Complete each full line with values that will sell in 
competition with the BB. 
4. If any goods do not sell fast enough, then mark them down 
to the next lower full-line price and advertise them. They will 
not only sell but also they will sell with themselves almost always 
enough profitable goods from the full line at the some price 
so that the mark-down loss will be wiped ous by the profits of 
the increased sales. 
But we can make the Model Stock Plan still more effective 
and, therefore, more profitable if we use the records that 
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