As I’m sure you’ve read, holiday sales were down and many chains are closing stores.
Wal-Mart is closing stores!
Even if your holiday sales were off, don’t even consider closing your store. Whether sales are up or down, you can make money in your store if you know what to do.
Macy’s is closing stores!
You’ve worked long and hard to build up a following. That following will still be there, but you must make sure you work it properly. You are feeling blue because you over bought and now face excess invoices that must be paid. Closing your store is not the answer.
K-Mart is closing stores!
With the big stores closing, it is actually an opportunity to increase your customer base, but it will take work to bring them in. Once you do, you need to have the right amount of merchandise to support your anticipated sales at the turn rates you desire. That’s the key. Yes, it’s that simple.
Retailers go out of business, not because their stores are unattractive or their personnel is unfriendly, they go out of business because they run out of money. Consider this, once you establish your base inventory (properly), that inventory should support your store forever without any additional input of cash from you, your friends, or the bank. Crazy? Not at all.
The trick is to turn over the merchandise so that it keeps generating money for overhead and profits. The more you turn, the more money you’ll have. If your merchandise sits and doesn’t sell, there’s no money. Overbuying is the same as over eating. You get fat, you get slow, you get sick, you die.
Everyone loves to eat. Retailers love to buy. It just feels good. But that good feeling goes away fast when the markdowns kill your profits and rob your overhead money. You can stop overbuying with open to buy planning. You can go to market or see reps in your store knowing exactly how much to buy. If you stay within that budget, you’ll always make money whether your sales in any of your departments are growing or declining.
Open to buy planning will guide you to turn your inventory and make money whether sales are up or down. A good system like MYOTBPLAN.COM will pull your inventory up going into your strong selling months and drive it down going into your weak selling months. You’ll always be on target.
Don’t close your store! Get open to buy! Get MYOTBPLAN.COM.