HOW TO PLAN AND CONTROL A MODEL STOCK 57
The three parts into which planning naturally divides are:
1. Planning ahead for as long as the business will continue.
This means carefully planning indefinitely ahead to increase
goodwill, to conserve the reputation of the store for honest
and fair treatment, to avoid anything that threatens the
general fundamental basis of the goodwill value of the
business.
2. Planning definitely as far ahead as is practical, neces-
sary, and possible for carrying out the Model Stock Plan
in the best way. In most businesses this means planning
ahead for a year.
3. Making written plans ahead for the subdivisions of the
year; by half years; by seasons; then by months; by current
month; by weeks; and, finally, by the day.
We must definitely plan our full-line stocks and the rate of
turnover for each necessary to keep a stock right and to make
the greatest total profit. This rate of turnover varies. Itis
unnecessary to explain to experienced merchants the details
of this statement. We all know that staples may safely
be permitted to turn at a slower rate than novelties—though
not all of us fully recognize the more-profit possibilities of
turning staples faster than is customary.
It would be a waste of time to amplify the statement that
novelties must turn very rapidly to avoid mark-downs
and to maintain novelty stocks that are always up to the
minute.
Just as obviously, style goods must turn rapidly, that we
may minimize mark-down losses and keep style stocks fresh
and attractive. Outsizes, the fourth general classification
of a full line, require special consideration as to size and
character of stocks and rate of turnover required. In fact,
the rate of turnover necessary to yield the greatest total
profits on each of the four classes requires careful attention.
The rate attained on each is of direct influence on merchandis-
ing the stock as a whole so that it will always fulfil the specifi-
cations of a Model Stock.
But this is not the place for microscopic attention to these
details. It is enough to point out that it will be helpful if
