The results of the OTB Calculations is a buying plan in retail dollars for each delivery month for the next 12 months. Now it is up to you to fill the OTB Amounts with the best available merchandise. Because this is a LIMITED amount you must be as focused as possible on buying just the right amount of the best merchandise. If you subtract the amount of each order that you place from the OTB Amount you will be left with the OTB Balance (the important number). This shows whether you still have dollars to place or if you’re OVERBOUGHT. Ideally, your OTB Balance will always be Zero indicating you’ve bought the right amount, but not too much.
As merchandise is received, it should be noted, but NOT subtracted from the OTB Amount which does not change until the OTB Calculations are run at the beginning of the next month. As your orders arrive, they should be deducted from your On Order so you know how your vendors are dealing with you. Are they shipping on time? Are they shipping complete? Are they substituting styles, colors or quantities? You want what you order and you want it delivered as ordered. Anything else changes your planning without your approval. Keep in touch and on top of your vendors to be sure they ship as ordered.
At the beginning of the new month, review any unshipped balances from the previous month and decide if you want to keep those orders open or cancel them as past due. Those remaining open must then be deducted from the new month’s OTB Amount so you can keep working toward your Zero OTB Balance.
The information in this and the following blog posts will help you on your way to an OTB plan and we are always available to answer your questions. The truth is that it is dramatically more cost and time efficient to subscribe to myotbplan.com. But whatever gets you using open to buy, we want to help.
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