You are nobody’s fool until it comes to buying for your store. Then there’s a big chance that your ego gets in the way of your sensibilities and you buy too much merchandise. When you do that, you will be receiving too many invoices. To pay those invoices along with the overhead, you will take markdowns on much of that excess inventory.
Sadly, that puts you on a treadmill that’s almost impossible to get off of because as you markdown more merchandise to raise more money, the hole gets deeper because markdowns eliminate your contribution to overhead and certainly kill your profits. So while it sure was fun buying all that merchandise, the problem is always selling it.
But supposing you only bought the right amount of merchandise and were able to sell it through without markdowns? That would be a much different picture. Think of all the time you’d save when you don’t have constant decisions on markdowns. Think of the difference you’ll see in your bank account when you are taking in greater sums for the same merchandise. Think of life without constant calls from creditors.
The answer is open to buy planning. With open to buy, you will develop a buying plan based on your anticipated sales and your desired turn rates (the two elements that drive your store). Follow this buying plan and forget markdowns because buying within a correct budget will make you a better item selector. Buy the right items in the right quantities and your life will improve in all ways.
So stop fooling around and start using open to buy planning. It’s the one business decision that will keep you from being a fool.