Full text: The model stock plan

HELPING PRODUCERS ELIMINATE WASTE 20:1 
will almost always be, in total, an order of mass-production 
size. It is principally because such savings are possible 
only on large orders that a great many small retailers, who 
today have no idea of entering into group-buying arrange- 
ments, will be forced to enter buying groups within the next 
few years, or else lose their businesses to the more modern, 
waste-saving forms of distribution which will soon be an even 
more intensive competition than they are today. 
We have already touched briefly on one respect in which 
the savings of large quantity orders may be practically drawn 
against in advance under the Model Stock Plan to improve 
the values we offer our customers. It will bear repetition 
and amplification here. When we are undertaking the 
development of a BB, we may, at the beginning, need to sell 
it very close; to a less degree the same situation may arise in 
getting into a full-line price any article that is a little beyond 
our cost limits. 
If we offer the BB or other full-line article at a price which, 
at first, yields us an inadequate profit, it will be such an 
outstanding value that customers will buy it in very large 
quantity, not to mention the trade that will be attracted 
thereby to other more profitable items in the same full line. 
As we increase our sales of the item in this way, we shall 
unquestionably find it possible to get the article from the 
producer at lower and lower costs, as the larger orders permit 
him to save in his factory. As we repeat this process on 
various items with a given resource, we are likely to find him 
willing to assist in the more rapid development of additional 
items by sharing in the early losses with full assurance that 
he will soon be getting the orders in large enough lots to yield 
him as well as us an adequate rate of profit. 
All of this reasoning is simply good sound business sense; 
for this is a basic strength of the Model Stock Plan, that it 
fits together into a common interest what are too frequently 
assumed to be the divergent or antagonistic interests of the 
buyer and the seller. The Model Stock Plan shows us in 
actual practice that the resource profits most by selling the 
retailer only those goods which he feels sure will yield the
	        
Waiting...

Note to user

Dear user,

In response to current developments in the web technology used by the Goobi viewer, the software no longer supports your browser.

Please use one of the following browsers to display this page correctly.

Thank you.