CHAPTER VIII 
DOING MORE BUSINESS ON SMALLER STOCKS 
Eight advantages of fast rate of turnover. How new styles originate. 
The Model Stock Plan eliminates needless items. Keeping open to buy. 
Making more money in dull times. Do we need smaller stocks for 
present sales volume or larger stocks and far larger sales volume? Pre- 
cisely how large a stock should be. Backing up the buyers. How the 
Model Stock Plan meets the conditions of the Second Industrial Revolu- 
tion, Mass producers canno tolerate wasteful distribution; every 
distributive business must meet new standards. Mass distribution 
lowers prices and increases markets through eliminating wastes. Eight 
major advantages of the Model Stock Plan, Combining the strength of 
the chain store and of the independent store. 
ONE of the most troublesome problems in retailing may be 
stated thus: How can we have stocks so complete that cus- 
tomers can find anything they may reasonably ask for in 
our line, yet so small that they will sell out rapidly and com- 
pletely? If we could do this without fail, we should be the 
best merchandisers, other things being equal. Unfor- 
tunately, perfection in this respect is hardly possible, even 
with the most staple merchandise. In some lines the prob- 
lem is complicated to a high degree by style and other 
uncertain elements. 
Of course we know, offhand, most of the major advantages 
of a fast rate of turnover. But for the sake of having them 
fresh in mind, suppose we list the direct economies: 
1. Smaller capital investment in proportion to the amount 
of business done, 
2. Greater total sales through ability to satisfy more cus- 
tomers through fresher and more complete stocks. 
3. Fewer mark-downs and a smaller total of mark-downs 
through less risk of the goods deteriorating or going out of 
style. 
4. Greater mobility to take advantage of sudden market 
changes (specially important where style is a factor) and 
changes in general business conditions. 
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