CHOOSING PRICE LEVELS TO INCREASE SALES 23 
The buyer with the Model Stock Plan knows that he ought 
not try to get $1.25 for the article. If he cannot buy it for 
$8 he will perhaps pay $8.50, if it is sufficiently attractive, 
and still sell it for $1. Undoubtedly he will be able to buy 
it for $8 in a very short time if he can place orders for large 
quantities. Moreover, if by the Model Stock Plan he has 
largely increased the amount of this article he can sell, the 
chances are that he will, before long, buy it for even less, as 
the manufacturer is enabled to lower his cost by production 
in larger quantities. Nevertheless, he will not delude him- 
self, in any event, by buying to sell at a price which the 
average customer does not want to pay. 
Right here it is worth pausing to point out that we shall 
not, under the Model Stock Plan, do anything to harm the 
producer. It is most shortsighted to cut the producer’s 
profit unduly or unfairly. The price we can pay for our 
merchandise is predicated on the assumption that the pro- 
ducer has eliminated waste to the greatest practical degree; 
if he wants to use our volume as a means to eliminate this 
waste or to eliminate some of the costly hazard in his style 
production, he may be willing to make us a mass-production 
price on mass quantities before he has achieved his mass- 
production economies. As soon as he has attained these 
economies, it is for our interest, as distributors, to help him 
earn a profit, so that he can, by his constantly growing 
experience and by reinvestment in equipment, cut out still 
more waste. There is no profit for the distributor in having 
the producer lose money. In the long run, the distributor 
and the customers have to pay for any such losses. 
How does this affect our goodwill? Simply that when we 
are using’ the Model Stock Plan scientifically, people, 
attracted by style novelties to the higher-priced stores with 
prices perhaps beyond what they want to pay, will soon 
learn that they can very often find the same thing in one of 
our full-line prices or, in any event, the same style in satis- 
factory merchandise of less expensive quality. 
Many an experienced merchant or department buyer does 
not believe it is possible to do all of his business on a single