How can we get rid of markdowns? Short answer: “you can’t!” Retailers are human and will always make mistakes. Some will buy what they like, some will buy what the rep suggests, some will buy by committee, but no matter what, there will always be those items that wind up in your store that make you say; “What was I thinking?”

But that’s the least of it – the mistakes. The bigger problem, the one that sinks retailers, is overbuying. Too much of a good thing is a bad thing. When you are encouraged to buy MORE, and you do, you are setting yourself up for markdowns.

Markdowns have become a way of life for retailers. They are used to fight the competition, to bring in new customers, to bring in old customers, to fight online retailers, and, of course, to get rid of buying mistakes. Markdowns kill your profits. Depending on how much of a discount you’re offering, the markdown will not only eliminate your profit, but will probably eliminate the contribution to overhead that that item should have made. While profits can be eliminated, the overhead must be continually paid. So, to create the needed cash for overhead, more markdowns are taken and that just brings on a negative cash flow spiral that never ends.

An open to buy plan will solve these problems in two ways. First, your open to buy plan will tell you how much merchandise you need in each merchandise category each month for the next 12 months. If you follow your plan, you will put an end to overbuying. Because the plan is based on YOUR anticipated sales and YOUR desired turn rates, the quantities of merchandise it suggests you buy will be correct. Second, if you stay within the plan limits, you will be forced to be a more discriminating buyer. Since you have a limited budget, you will be sure to pick the best of what’s available to meet your dollar plan. No more just buying MORE!

Nothing is perfect, but using open to buy planning as your buying guide will bring you dramatically closer to reality and help you bring your markdowns as close to zero as possible. This will insure a constant flow of cash to pay your vendors, your overhead, and yourself!

Subscription Information

By filling out the form below, you are merely indicating your interest in becoming a subscriber to The cost per store is $150 / month and includes 30 departments. Additional departments are available at 10 departments for $25/month.

We will call you (if you are in the US) or email you with additional information and ask for your credit card information as the subscription cost is charged to your credit card automatically every 30 days.

There is no contract and every subscriber is covered by our Performance Guarantee. The system is supported from 9AM to 7PM PST 365 days a year and you are encouraged to call as often as you have questions.

You will be required to read our general instructions before you begin filling in your data and there is detailed information about each screen on the screen you're working by simply clicking the Help icon at the top.

The program is easy to use, accurate, affordable, accessible, supported and guaranteed. It's simply the best open to buy plan available. We will contact you as soon as we received your information. Please be complete.

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