Retailers love to buy. We all know that. See it – love it – buy it! But too much of a good thing is a bad thing. Once you have bought too much merchandise, you are off to the races on a negative cash flow treadmill. Bloated inventories come with excess invoices which lead to markdowns. While that sounds like solution, it’s not. Markdowns eliminate your contribution to overhead and profit. While you can live without profit for a short time, the overhead needs to be paid to keep the doors open. So, more markdowns to raise cash, but that just digs the hole deeper.
The only real solution is open to buy planning. When you know how much to buy and STOP when your budget is filled, you will be in a position to support your sales , pay your vendors AND your overhead. And, if you follow your plan, you will wind up with a profit every month.
Your open to buy plan will base your buying on expected sales and desired turn rates. The goal of a great open to buy plan is to constantly improve your turnover so you constantly make more money.
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?
#opentobuy #myotbplan #retailsuccess #reducemarkdowns #stopoverbuying #retailbuyingplan #knowhowmuchtobuy #improveturnover