It’s not as silly as it sounds. Retailers are on a constant search for special merchandise for their stores. After the hunt comes the purchase, then the waiting, then the arrival and the excitement. Finally, pricing, positioning on the sales floor, displaying and (hopefully) sales.
If it flies out the door, that’s just great, but that’s the exception, not the rule. So, the merchandise becomes part of the store, part of your family so to speak. Now the love is diminishing because we retailers are a fickle bunch and have fallen in love with other merchandise. But your money is tied up in your previous loves.
Now here’s the tough part. After all that love, breaking up is hard to do, especially when you have invested not only your time and effort, but also your money. The first thought retailers have is that they don’t want to lose money on this merchandise. So now what?
While you will have a tough time moving your focus away from the items you buy, you must remember that they represent your MONEY. You have chosen retail as your way to make money and you must keep your focus on your bottom line. If you cannot look your merchandise in the eye and say I’m done with you and I’ll take whatever you can bring me, then you’re going to be in trouble.
Many of you have gone into retail because you love the product and there’s nothing wrong with that as long as you realize it’s a business and it should be supporting you, not the other way around. Too many retailers fail because the keep buying beyond their ability to sell. They are always saying, my customers need to see new merchandise.
Retailing is about flowing merchandise in and OUT. Your store will only do a finite amount of business each month. Of course, you do everything you can to increase that business, but ordering more merchandise will not help in that area. You have to order the correct amount of merchandise to support your planned sales at the turn rates you want to achieve. The only way to make this determination is with open to buy planning. Planned sales and desired turn rates will yield ideal inventory levels and then a buying plan to insure that your inventory on the 1st of each month will be correct to support your sales at desired turn rates.
MYOTBPLAN.COM is the ideal program to determine how much to buy in each merchandise category each month for the next 12 months. When you use open to buy planning, you’ll fall in love with your bottom line, not the items in your store.