If an article has been sold at too high a price and
then, because of stagnant business, the price is suddenly cut, the
response is sometimes most disappointing. And for a very good reason.
The public is wary. It thinks that the price-cut is a fake and it sits
around waiting for a real cut. We saw much of that last year. If, on the
contrary, the economies of making are transferred at once to the price
and if it is well known that such is the policy of the manufacturer, the
public will have confidence in him and will respond. They will trust him
to give honest value. So standardization may seem bad business unless it
carries with it the plan of constantly reducing the price at which the
article is sold. And the price has to be reduced (this is very
important) because of the manufacturing economies that have come about
and not because the falling demand by the public indicates that it is
not satisfied with the price. The public should always be wondering how
it is possible to give so much for the money.
Standardization (to use the word as I understand it) is not just taking
one's best selling article and concentrating on it.
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