Do you have an open to buy? If you don’t, now is the time to find one. Buying merchandise for your store without open to buy is a little like driving a car with a blindfold on – you might get where you’re going, but the chances for disaster are overwhelming.
Does your open to buy give you a retail dollar buying plan in each merchandise category for each month 12 months into the future? If not, you’re not getting the complete information that you need to be an effective buyer.
Is your open to buy plan based on your anticipated sales and desired turn rates? Sales and turnover are the two forces that drive your store and must be the basis for your open to buy plan.
Are you able to evaluate each month’s sales, beginning inventory and turnover in each department against your projections for the month just ended? Are you able to evaluate up swings and down turns and determine if you are seeing trends? Can you easily make revisions based on this information?
Are you seeing improvement in your turn rates on a regular basis? Turnover is the key to making money in retail. If you’re only focused on increasing your sales and not on increasing your turnover, you’re missing the boat. If your sales increase, but your turn doesn’t, more than likely you’re overbuying and any profit will be buried in depreciating inventory.
Does your open to buy adjust the annual turn rates to reflect the sales impact of each month and adjust for any negatives in the open to buy calculations? These adjustments will make a big difference in ideal beginning inventory levels and in your buying plan. While you will never get down to the dollar, your open to buy plan should bring you in close to your target and keep you moving in the right direction.
If your open to buy does all of the above and does it easily at an affordable price and is accessible to you from any computer, tablet or smartphone and supported whenever you need help, you’re set. If not, you should subscribe to myotbplan.com. We do all of the above and more and we guarantee the results. We’ve covered all the bases so you can easily manage your buying to achieve maximum sales and maximize your turnover. With the shows starting for 2014, now is the time to subscribe to myotbplan.com and insure your store’s success.