Many retailers feel that buying is an art form… and it is, to a certain extent. And while being free to buy anything that will create excitement in your store is absolutely a blast, it is precisely what gets retailers into cash flow trouble.
Having an open to buy plan as the basis for your buying means that you will choose the best available merchandise to meet your dollar plan, one that is based on your anticipated sales and your desired turn rates. Buying without a plan may be fun and ego fulfilling, but it is definitely against your own interests.
“How can I create the look and feel I want for my store if I am restricted?” many ask. You still can, but it will be based on insuring a positive cash flow so you can continue having great merchandise and a positive cash flow. In fact, when you go to a trade show with a plan based on sales and turnover, you are forced to be a better item selector. If you cannot buy everything that appeals to you, you will actually make better decisions by carefully comparing your options. Now you’re picking better items in the right quantities to meet your anticipated sales and give you higher turns and an improved cash flow.
So, where’s the down side? There is none! What do you think?