We all love to buy merchandise. It’s probably the reason you got into retailing in the first place. Sure, there are many other pleasures – selling, doing displays, getting feedback from your customers, etc. – but nothing beats buying for a total high (without drugs).
You are in front of the vendors, they want your business (if they’re smart), they pander to you (that always feels good if done right), and you feel your power. So, there you are, looking at and ordering all of the greatest merchandise you see for your store.
And in a while, after you’ve forgotten this trip, it will start to roll into your store. As you begin to open the packages, you may think: “Did I buy this?”. It’s happened to me and I’m sure it happens to you. And in many cases, you may find you ordered the same thing from multiple vendors. The high you experienced may suddenly become a low.
No matter how great the merchandise is, if you have purchased too much, you’re going to wind up with markdowns so you can raise cash to pay the bills. Markdowns lead to more markdowns because they don’t provide any contribution to overhead or profit. You can skip the profit for a while, but you need to pay the overhead to keep your doors open. Retailers fail because they can’t pay their bills because they buy too much merchandise.
The easy solution to this problem is “open to buy” planning. Creating a buying plan based on realistic sales projections and desired turn rates and buying according to that plan will keep your inventory dollars turning so you can pay your vendors, pay your overhead and pay yourself.
It should be an easy choice, but too many retailers choose to ignore this advice and try to do it in their head. They can’t! But by trying, they are buying themselves into bankruptcy. Don’t let that happen to you. There’s no time like the present and there’s no open to buy plan like myotbplan.com. Fill out the Subscription Form or give us a call. There’s NO obligation! The sooner you take action, the sooner retailing will be back giving you the high you crave.