CHOOSING PRICE LEVELS TO INCREASE SALES 23
line prices those articles which cannot immediately, in spite
of our utmost exertions, be bought to sell at the full rate of
profit at the full-line price. Under traditional methods,
these items would be marked at in-between prices to yield
the planned profit of the department. By our plan, even
though these goods might have to be sold at a smaller per-
centage of profit at the full-line price, it can be seen at once
how much better it is to draw with special attractions to a
full-line price where the customer will find an incomparably
better assortment than competitors have at the advertised
special bargain price for which she comes into the store.
No experienced retailer believes he can sell all customers
from advertised lots; there are too many variations in desires
as to style, color, and so on. But at the full-line prices we
are almost sure to have a stock adequate to meet these
variations in desires.
Another real advantage of having three scientifically set
price lines has to do with the trend toward mergers, consolida-
tions, the formation of voluntary chains, and buying groups.
The time is coming, and soon, when practically every store
will be forced by competition to avail itself of the buying
advantages of some one of these modern merchandising
forms.
But as all of us know who have had any experience with
group buying, the greatest handicap to its proper functioning
is the difficulty of agreeing on the prices that goods are to be
boughttosell at. Togettheadvantageof mass buying, orders
must be large enough to permit the manufacturer to make
mass-production economies. In group buying such orders
are generally possible only if all of the member stores agree
upon the three factually determined price levels for each class
of merchandise. So if our store operates on three price
levels properly set under the Model Stock Plan, we are in
the best possible situation to band ourselves with other
Model Stock Plan stores to get the greater profits attainable
from consolidating the orders of many stores.
Let us now tabulate the major more-profit advantages
from using the three full lines of a Model Stock: