What is Open To Buy? Open to buy is a mathematical process that will enable a retailer to know how much to buy.
What drives an Open To Buy? Just like every retail store, open to buy is driven by anticipated sales and desired turnover.
Why is Turnover important? The advantage in retail over other types of investments is turnover. You have the ability to control the rate at which you turn over your invested capital through the use of open to buy planning. The more you turn, the more you make!
What benefits will Open To Buy provide? Open to buy will insure that you know how much to buy in each of your merchandise departments for each of the next 12 months. Buying with this information will keep your inventory lean, balanced and turning at the rates you desire and reduce your markdowns and increase your cash flow.
How much time will Open To Buy take? A good open to buy plan such as myotbplan.com will take little of your time. Depending on the number of departments you use, the system can be set up in under three hours. After that the monthly upkeep should be less than an hour a month.
Which retailers need Open To Buy? Without open to buy, retailers are guessing about their buying. Guessing never works! It doesn’t matter whether you are planning a store, recently opened your store or are an established retailer, if you want to keep your inventory at the right levels and make money, you need open to buy.
Can a retailer operate without Open To Buy? Absolutely. At least until your money runs out. Operating a store without open to buy planning is like driving your car with a blindfold on. You might get to where you’re going, but your chances of disaster are extremely high. Why risk it?