Your accountant may tell you that you’re doing well, but his figures are based on cost of goods sold, not cost of goods BOUGHT! There’s a big difference because all of that excess inventory is keeping your dollars from being productive. If you could immediately take all of the slow and non-selling inventory and convert it into cash, think of what you could do to enhance your store.
The trick is not to get into that situation in the first place. The trick is to buy only the right quantities to support your sales, keep your turn rates high and your inventory fresh and your cash flow POSITIVE! The only way to do that is with open to buy planning. Your store will only sell a certain amount of merchandise. Of course, you want that to grow, but bringing in excess inventory will not help. Your open to buy system will tell you the correct amount of merchandise to order in each department for each months for the next 12 months.
That information (and following it) will insure that your sales will cover invoices and overhead and leave you with a generous profit every month. A lean productive inventory will mean your working capital is in the bank and ready to help you grow your store.
myotbplan.com is the best open to buy system available! It’s easier, more accurate, more accessible, better supported, the only one that’s guaranteed and has no contract. You have nothing to lose and so much to gain. Call 310-829-5148 today with your questions or just fill out the no obligation Subscribe form online and we’ll call you. Why wait?
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