An April Fool (pick any month, really) is a retailer that does their buying without open to buy planning. Yes, it’s easier, but it’s a lot more expensive when you consider bloated inventories, excess invoices, markdowns and the negative image it brings to your store. This is what you can expect when you avoid using open to buy planning.
The Smart Retailer plans well, buys right, turns quickly and profits mightily. The easy way to be a Smart Retailer is to use open to buy planning. Open to buy will guide you to develop a buying plan based on your anticipated sales and your desired turnover. Sales and turnover drive your store and also drive an open to buy plan. A good open to buy plan will show you how you did each month against your projections and allow you to make revisions as you see trends developing so you can keep your buying right on track and your store on the road to increasing profits.
Setting up an open to buy plan will tell you immediately where your current inventory and your future orders are out of balance. A few corrections to these situations will pay big dividends. Fools have fun buying everything in sight. Smart Retailers have fun buying the right quantities and making lots of money. Isn’t it time for you to stop fooling around with your merchandising.