It’s tempting to think that to pack up merchandise that has gone out of season and store it in your back room until next year will be better financially than taking markdowns and selling it for whatever you can get. But that only delays the inevitable and is also costly.
Sure you think that merchandise will still be viable next year, but it probably won’t. Your customers will want new styles and colors and the old stuff will be, well, old stuff. Even if it were salable, you would have paid overhead for 6 to 9 months on dollars that were depreciating. Everything you do in your store has a cost.
You are much better off to take your markdowns and turn that merchandise into cash and move on with fresh new items. Your customer will thank you and so will your bank account. The key factor is whether or not you will be incorporating an open to buy plan in your future decision making to help you avoid this situation from occurring again. Open to buy planning will insure that you have sold off your old merchandise while receiving new, fresh items.
The secret to success is knowing how much to buy and then controlling your ordering to insure proper deliveries to support your sales, improve turnover, reduce markdowns and insure a positive cash flow. myotbplan.com is the planning tool guaranteed to do just that.
#opentobuy #myotbplan #retailsuccess #reducingmarkdowns #stopoverbuying #retailbuyingplan #knowhowmuchtobuy #improveturnover