MAKING MARK-DOWNS PAY A PROFIT 109 
2. Those which occur irregularly, due to unforeseen shifts 
in styles or markets or general business conditions or else 
to unusual errors in buying judgment. 
So important are mark-downs in their effect on total profits 
that in a large store it is worthwhile to organize, as part of 
the research department, a central function to study the 
causes of mark-downs in this store.! By emphasizing to 
the executives the importance of mark-down losses and 
showing the causes, such a study points to specific facts and 
goes a long way toward preventing excessive losses from 
mark-downs. Nobody in the store likes the necessity for 
taking mark-downs; all open-minded executives and buyers 
may, therefore, be depended upon to take steps to reduce 
these losses when they see how to go about it. 
The Model Stock Plan, by providing a definite method of 
calling attention at the earliest possible moment to the need 
for mark-downs and providing a definite method of pricing 
and repricing, permits us to operate our store with the least 
total mark-downs. Also, early mark-downs of the less 
desirable goods let us sell them out so that we can replace 
them this much earlier. This helps the reputation of our 
store for having good styles and makes our stock as a whole 
much more desirable. 
By turning our mark-downs into a means of drawing trade 
directly to our full lines and replacing the goods thus sold 
with goods bought more advantageously, the Model Stock 
Plan actually enables us to profit by our mark-downs. = Thus, 
once more, we find that this set of principles functions to 
increase our total profits. 
tTp the smaller stores the owner usually does this consciously or uncon- 
sciously without any specialized staff function.