If you’re thinking you’re successful because of achieving a good figure on your Cost of Goods Sold from your P & L Statement, think again. Your accountant is just following accounting practices and is not a retailer. The figure you need to consider is Cost of Goods BOUGHT! This is the figure that counts because your CoGS only reflects what you sold, not the rest of the inventory you bought that is filling your shelves and producing nothing until you start marking it down creating losses.
The goal of any retailer should be to sell through every piece of inventory leaving your GoGS equal to your Cost of Goods Bought. When that happens you’re definitely on your way to SUCCESS and the only way to achieve those results is with OPEN TO BUY planning. Open to buy develops a buying plan based on projected SALES and desire turn rates, the two elements that drive your store. Buying according to that plan will keep your inventory fresher and turning over and your CoGS right where it needs to be.
The only way to succeed in retail – on paper or in the store – is with open to buy planning. You can do it, we can help!
myotbplan.com is the best open to buy system available! It’s easier, more accurate, more accessible, better supported, and the only one that’s guaranteed. We have no contract, you have no risk! Call 310-829-5148 today with your questions at or just fill out the no obligation Subscribe form online and we’ll call you. Why wait?
#opentobuy #myotbplan #retailsuccess #reducemarkdowns #stopoverbuying #retailbuyingplan #knowhowmuchtobuy #improveturnover