Markdowns are a way of life to most retailers. Buy too much, sell some, mark down the rest to make room and raise cash. And on it goes. Here’s the problem – when you sell an item at full price, you cover the cost of the item, and make a contribution to overhead and profits. You need the contribution to overhead to pay your rent, your staff, and all the other expenses associated with running your store. And you need the contribution to profits because that’s the reason you’re doing this in the first place.
Here’s something to ponder: In order to just BREAK EVEN, you need to sell at least 80% of your inventory at FULL PRICE!
The only way to keep from overbuying is to use open to buy planning. Sure it will slow you down in the market place and sure the reps won’t be happy, but you’ll be selecting better items because of a restricted budget and you’ll be buying the right quantities! So, you’ll be running less sales and your customers will begin to shop your store to see what’s new rather than what’s on sale.
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?
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