Retailers get positively crazy when they miss a sale, but they don’t think twice about taking tons of markdowns. What’s wrong with this picture? No one wants to miss a sale, but missing a sale on something you DON’T carry is no big deal. You can’t carry everything and be all things to all people or you’ll be out of business in no time flat. But you definitely don’t want to miss a sale on something you carry. If you do, you need to start retraining or replacing you help.
On the other hand, markdowns are the cause of most retail failures and still retailers continue to overbuy and mark down. When you sell an item at less than full price, you may get the manufacturer’s cost, but not a contribution to overhead or profit. You can live without profit for a short time, but not the contribution to overhead if you want to keep the doors open. Without that you will find yourself taking more markdowns to make up the difference and then you’re on a negative cash flow treadmill that is hard to get off of.
The answer to both problems is open to buy planning. With a good open to buy plan, you’ll have a more limited budget since your plan will be keyed to your anticipated sales and desired turn rates. Being limited in the marketplace will force you to select only the best items so you’ll miss fewer sales and with the right merchandise in the right quantities at the right time, you’ll take significantly fewer markdowns.
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 at 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