We all love to buy! It’s easy and all the reps are so encouraging. They want us to never miss a sale so they suggest we buy MORE. If everything in life could be this simple. Finding great items for our store and ordering it from our good friends.
When the merchandise comes is, we’re excited. Our staff is excited. Our customers are excited. We sell. And sell. And sell. But still there’s MORE. What now? Markdowns!
Markdowns eliminate your contribution to overhead. Markdowns eliminate profits. Markdowns make your customers happy, but do little to insure that you continue in business. You can reduce your markdowns to an absolute minimum if you plan your buying with open to buy.
Open to buy will insure that you know “how much” to buy in each merchandise category for each delivery period 12 months ahead. If you follow your open to buy plan – which is based on YOUR anticipated sales and YOUR desired turnover – you will always buy the right quantities to support your sales and insure your profits. And isn’t that why you do this in the first place?
Avoid the “Oops!” with open to buy planning!