Full text: The model stock plan

226 THE MODEL STOCK PLAN 
only at de luxe price levels and have become necessities 
available to practically everybody at the price he can best 
afford to pay; a 1930 Ford or Chevrolet is a far better 
automobile than the finest and most expensive car of 1905. 
Radio receiving sets of fine quality and appearance are, as 
this is written, available to the consumer at half the price of 
an old-fashioned, far inferior battery-operated set of five 
years ago. 
All this economy, this waste saving, is possible because of 
advantages arising from the Model Stock Plan type of mass 
production and the Model Stock Plan type of mass distribu- 
tion. We may definitely count on the trend to continue, for 
its advantages to the producer and the distributor are as 
manifest as the advantages to the consumer. 
Let us look briefly at the advantages that the Model Stock 
Plan brings to the business where it is used: 
1. Prices are set at the three full-line levels that the most 
Customers are most willing to pay. 
2. Producing and selling goods for these fixed selling prices 
assures giving customers exceptional values at each price 
level 
3. Standards of value are established by carefully planning 
BB’s, and then making sure that all merchandise values 
measure up to them. 
4. Complete stocks at each price level are carried safely, 
turned rapidly, and sold at a satisfactory total profit. 
5. Volume of sales increases because of both the better 
values and the more complete stocks. 
6. Selling effort is applied according to the selling calendar, 
so that it yields the greatest volume of profitable sales. 
7. Buying is concentrated on those articles which customers 
want and will be benefited by owning; it is scheduled by the 
buying calendar to fit with the producer’s needs to produce 
better values. 
8. The department head’s abilities are concentrated on 
selling, in the sense of finding what customers want and then 
delegating much of the actual ordering to assistants.
	        
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