04 THE MODEL STOCK PLAN
This, strange as it may seem, is a reputation not enjoyed
by many stores. The store which has the reputation has
more of these extraordinary lots offered it before they are
offered to anyone else.
Keeping goods in reserve stocks to avoid taking markdowns
is abuse not use of the automatic bargain basement
plan. Moreover, holding back goods in reserve stocks does
not even temporarily increase profits, for then it is inevitable
that an attempt is made to supply the drawing power—
which should come from the goods—by bigger advertising
of special bargains, which is hurtful. This is always a
danger, and it must be guarded against. Experience has
shown that the temptation is often too great when an
immediate profit is in sight. Successful men all have the
natural urge to “improve” plans and processes. This is,
of course, good—provided the improvement is based on a
thorough study of the plans and processes to be improved
and not a concession made at the expense of goodwill, longtime
profit, and the ultimate success of the plan for the sake
of a much smaller immediate profit.
When a merchant establishes an automatic bargain basement
and is strong enough to carry out the basic principles
unflinchingly, he inevitably sells a large volume of goods.
Thus he eventually gets his overhead and other expenses
very low as compared with his competitors. In consequence,
he will finally be able to do business in the basement store at
much less than the rate of expense prevailing among his
competitors.
To give concrete instances of the results that may be
attained under the automatic bargain basement plan—
and to study its workings in some detail—let us look at some
facts from the automatic bargain basement of the Filene
store in Boston.
In no other place that I know of is a larger volume of
business (over $10,000,000) done in the same amount of
retail selling area (45,683 square feet). The rate of turnover
has been extraordinary. Countless instances are on record:
275 fur coats ($12,500) were sold in about 10 minutes; 470
