Don’t let December profits evaporate with January markdowns! I’m sure that all you’re thinking about right now is selling while consumers are anxious to buy merchandise, but now is the time to think about and act on the following:
1) Examine your current inventory to determine which items are going out of season, which items have lost their excitement, which items are becoming shopworn, and which items are just starting their sales slowdown.
2) Once you have made these determinations, get all of this merchandise lightly discounted and moved to the best selling location in your store. Right now consumers are looking for bargains and are anxious to spend. Help them out by helping yourself to clean out merchandise that is going to be a problem the longer it sits. Add “spiffs” to this merchandise to add incentive for your staff to push this merchandise. And move the hot new items away from the prime locations, but, of course, keep them available.
3) Figure out your ideal inventory position for January 1st, 2015. The idea is to sell like crazy this weekend and all through December so that on January 1st, your inventory is at exactly the right level to support your January sales at the turn rates you desire.
4) Review your outstanding orders to be sure that they are for not only the correct amounts, but for the correct delivery dates. This will insure that you will go forward with the correct quantities of merchandise to support your sales and give you the best possible turn rates.
Accomplishing the above is easier than you might imagine, but the first step is knowledge and that knowledge will only come from open to buy planning. Your open to buy plan will point out where and by how much you are currently overstocked. With this information, it will be easy to review your current inventory and determine what must be marked down and pushed by your staff.
Your open to buy will also provide you with your ideal inventories in each department for each month for the next 12 months so it will be easy to see where you need to be on January 1st and the first of each month after that. And because your open to buy plan is based on anticipated sales and desired turn rates, it will build your buying plan so you will easily see where your outstanding orders are too heavy or where you need to commit additional dollars.
Yes, now is the time for strong sales, but it is also the time to chart your finish to 2014 to insure that you go into January with money in the bank that will stay there rather than come back out to help you pay the bills when you take deep discounts on all of your excess inventory. Now is the time to turn to your open to buy system for guidance that you cannot find anywhere else.
MYOTBPLAN.COM will give you this information and a good deal more. It’s the right system to guide your buying to insure that you finish 2014 strong and cruise into 2015 with your inventory and cash flow totally under control.