Full text: The model stock plan

WHAT IS A MODEL STOCK? 51 
2. Soon the BB itself will become profitable—the manu- 
facturer’s price on it will generally come down within a 
period short enough to make it profitable, if orders can be 
placed in large quantities at about the time the manufac- 
turer’s rush business is over. One other point is to be borne 
in mind, that increased sales under proper management and 
control largely cut down the percentage of indirect expense, 
which is often one-third or one-half of the total expense. 
It is unwise to depend on the plan of using a smaller rate 
of mark-up at the beginning of the season, however, until we 
have employed every method to get a BB that pays a fair 
profit at the start. This should be possible, eight times out 
of ten, provided the Model Stock Plan and BB’s are integral 
parts of the business. 
In many or most stocks the selection of a BB, shopping to 
make sure it is right, and then correcting the rest of the line 
by comparison with it, is a business-like, reasonable, and 
scientific method of making sure that the selling possibilities 
of our lines are better than those of our competitors. I 
believe, also, that any stock will be better if the first purchase 
in it is a BB. 
If that is impossible or impracticable—as at times it 
may be—then no large purchases or reorders should be made 
without determining the salability of that merchandise in 
relation to the BB standard and after having satisfied our 
minds as to the coming style. 
Let us remind ourselves once more that we shall be obliged 
to meet all the difficulties of competition anyhow, whether 
we have the Model Stock Plan or not. But we shall meet 
them much more effectively with it. With the Model Stock 
Plan established throughout our business we shall have such 
good values in all of our departments and throughout our 
lines that we shall establish a reputation for extra values and, 
therefore, a drawing power that cannot be established equally 
well by any competitor who only spasmodically meets our 
1 For a further discussion of the importance of style under the Mode 
Stock Plan see p. III.
	        
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