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