With the 4th of July upon us, we’re all looking skyward for some spectacular fireworks. But the place all retailers want to see things shooting up is on their bottom line. There’s a sure fire way to do that and it’s hard to believe there are still retailers that are unwilling to light the match to explode their profits.
Your store is a vehicle to drive profits. While most retailers look more at the creative end, it is all just a means to making money. If you don’t have that as your motivation, you’re missing the boat and can bet that in a reasonable amount of time you’ll lose your ability to pay your bills and ultimately lose your store. It happens all the time, but it doesn’t have to happen to you.
You can put all of your creative energy into the areas you love, but base everything on a foundation of buying numbers of anticipated sales and desired turn rates. Try as you might, your sales will only be able to increase in small amounts, certainly not enough to drive profits. But turnover will definitely drive profits. An open to buy plan is based on sales and turnover. Realistic sales and ever increasing turnover will insure a positive bottom line.
Advertising, display, changing your environment, and better sales staff will all contribute to maintaining and growing sales. More inventory than is necessary to support those sales will slow your turnover and inhibit your cash flow. Your turnover can be pre-planned to keep your buying plan on target to give you the results you desire and boost your bottom line.
So, take the pledge and sing out for greater profits in your store by using open to buy planning to guide your buying. Your bottom line will look like the 4th of July!