What do you really need to succeed as a retailer? I’m sure that this question sends your thoughts swirling, but it’s easier than you think.
Sure, you need a store with all the trappings, but once that’s in place you need to bring in customers. So, you need to promote in every way possible. Once they start coming in, you need to present them with a great environment, wonderful sales help and, of course, terrific merchandise.
You knew that and you’re probably already doing it. But that’s only half the picture because growing sales is not the answer to success. It certainly helps, but without controls on the amount of inventory you bring into the store, you may find your increasing sales are still not enough to pay for all the merchandise and the overhead as well.
Think about this quote: “Buying the right items brings in the customers, but buying the right quantities brings in the profits!”
That’s it in a nutshell. All the work you do to bring in customers and satisfy their shopping needs means little when you run out of money at the end of each month. It doesn’t have to be that way, in fact, it can be just the opposite. You can satisfy your customers and put away profits every month if you use open to buy planning.
Open to buy will insure that you always have the right amount of merchandise to support your sales and achieve the turnover you are looking for. It will also force you to select better items because instead of just buying everything you like, you will be restricted to the right dollar amount in each category which makes you think hard about every item and choose only the best.
When you bring in customers and treat them to the best available merchandise, it’s a winning combination. Keep them coming back to see what’s new as fresh merchandise comes in as the old merchandise flows out. Not only will the customers keep coming in, but so will the profits.