Buying is easy. Selling is hard. Go to a trade show and everyone there wants to sell you merchandise for your store. Everyone has the newest, the best, the must have items and if you don’t buy them now you’re going to miss the boat! So, you buy. That was easy.
Then the work begins. Finding space, advertising, displaying and, hopefully, selling all this great new stuff. Did you really need it all? What about the merchandise that was already bought, paid for and is hanging around your shelves? Suddenly it becomes less desirable and less interesting and then… markdowns. Markdowns kill your profits and create a hole in your cash flow.
This cycle won’t happen if you have an open to buy plan. Your open to buy plan will tell you how much to buy – in each merchandise category, each month for the next 12 months. So, no matter how enticing the merchandise being shown to you by your rep seems to be, you have a plan that based on YOUR anticipated sales and YOUR desired turn rates. You can then say NO! When you say no to a rep, you will be saying YES to turnover and profits and that’s why you opened your store in the first place.
Excess inventory and invoices will not improve your sales, they will only create loss and stress for you. Choosing the best available merchandise to meet your open to buy plan will keep your merchandise turning and your bank account full.
Open to buy planning is the most basic merchandising tool any retailer can employ. Without it, you are just guessing and guessing always leads to over buying. So, get a plan. And get it right now. The best time to institute your open to buy plan is today, not on the anniversary of your fiscal year or at the beginning of next year, but today. Your open to buy plan will tell you TODAY where your current inventory and future orders are out of balance and show you clearly what steps to take to put you on a path to greater profits and total success.
MYOTBPLAN.COM is the easy, effective, accurate way to have all the benefits of open to buy planning. Online, so it’s always accessible, supported 10/7, and guaranteed to improve your buying, inventory position and cash flow. And with no contract, there’s no reason to wait. It’s the best move you can make to grow your bottom line.