Retailers have some pretty large egos. It’s one of the reasons they have such great looking stores and are loved by their customers. They want that adoration and want to please. But they also can let that ego blind them when they are merchandising their stores.
I’m talking about buying without a plan. Because of their egos, retailers feel they know how much to buy. They don’t! It’s just too complicated to do in your head if you want to get it right. It’s not about the items, it’s about the dollars, in each category, for each month, at different turn rates (that should be adjusted to reflect the sales impact of each month). See where I’m going?
A good open to buy system solves this problem, but far too many retailers continue to try to do it in their heads. And they get it wrong, and they have too many payables, too many markdowns, and trouble paying their bills. Why? Because of their ego. They never want the suppliers to think they can’t buy MORE. And that’s exactly what the suppliers live for and work on. The reps wouldn’t do anything to hurt you, would they? Of course not, they’re your best friends. Think again.
I know this sounds harsh, but it’s a harsh world and everyone is out for themselves even if they try to convince you otherwise. Retailers have to keep their guard up and their best guard is an open to buy plan. Having an open to buy plan insures that you will buy the right quantities in the right departments for delivery at the right times to support YOUR anticipated sales and YOUR desired turn rates.
You can do this. You just need to set your ego aside and devote yourself to making money with open to buy planning.