1. The most important part of the retail process is buying.
Everything revolves around your buying. If you do it right, everything else falls into place. If you do it wrong, you spend the rest of your time trying to correct your mistakes.
2. Buying is hard work, not fun.
Your toughest job as a retailer should be the buying. Planning, revising, searching, analyzing, and selecting the best items to meet your plan is work, not fun. But the results are fun if you do it right.
3. Buying should be done by category, not vendor.
Your customers shop by category. Your store should be set up by category. Your buying should be planned and executed by category.
4. Buying should be at retail, not cost.
Cost is for your accountant. Your customers buy at retail. So should you. When you find an item you want to buy, before you know the cost, you should set the retail selling price based on what your customer will spend and the intrinsic value of the item. Then ask the cost. If the cost supports the margins you wish to maintain at the selling price you established, the item will be a winner. If not, and you raise the selling price, you’re buying a markdown.
5. Quantities are more important than items.
Of course, you want to buy the best items available to meet your dollar plan, but too much of a good thing is a bad thing. Plan your buying based on anticipated sales and desired turn rates and stick with it, no matter what discount, dating or other deal is offered to entice you to buy more.
6. Buying plans need monthly revisions.
Everything changes and affects your store. Analyzing sales, beginning inventory, and turnover at the conclusion of each month will enable you to see trends and make revisions. Revisions will keep you on course to maximize sales and grow your turn rates.
7. The correct way to plan your buying is to use “open to buy”.
This is the only process that will keep your buying on target to support your anticipated sales and meet your desired turn rates. Anything else is guessing, and guessing never works.
8. There are many open to buy plans available, so how do you choose?
Of course, we will recommend myotbplan.com because it is easy to use, accurate, affordable, accessible from any device, supported 10/7, requires no contract, and is guaranteed to improve your buying, inventory position and cash flow. Call us with your questions, we’ve got all the answers to help you succeed.