Buying the right items brings in he customers, but buying the right quantities brings in the profits. Too much of a good thing is a bad thing. Having a buying plan based on your anticipated sales and desired turn rates will allow you to exercise your creativity within a defined plan for profitability.

What that means is that you will be buying the right amount of merchandise in each of your categories for delivery at the right time to support your sales, give you the turnover you seek and a positive cash flow. Along the way, you’ll reduce your excess invoices and markdowns. Open to buy planning will keep your buying right on target.

Think for a moment about having your store filled with the right amount of merchandise in the right categories at the right time. Life would be pretty simple. You’d be making sales like crazy, selling through each lot at full price and spend your time with creating great displays, coaching your personnel and allocating profits for promotion to keep building your business.

That pleasant thought will only come through using open to buy planning. Most retailers prefer to “fly by the seat of their pants” (guess) because it doesn’t involve planning, numbers or computers. But that type of buying will always come back to bite you as you find yourself without cash to pay the excess invoices. Next you turn to markdowns to raise the cash, but at the same time you’ve eliminated your contribution to overhead and given away your profits.

If you use open to buy planning, you will not have those negative experiences, but you will always have a positive cash flow. That will give you the freedom to grow your business and succeed. Isn’t that what you want?


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