It seems that in life, most things are 80/20. 80 percent work and 20 percent reward. And that’s OK since we generally enjoy the work that brings us to the reward.
One place where 80/20 does not work is retail. Too many retailers do 80 percent of their business with 20 percent of their inventory. The obvious problem with this is that 80 percent of their inventory is not very productive. To be totally effective, a retailer should be doing 100% of their business with 100% of their inventory. This means everything is turning and contributing to overhead and profits.
If your percentage breakdown is not 100/100, then you are losing sales and creating markdowns. The way to move toward 100/100 is with open to buy planning. While you may not actually achieve 100/100 it must be your goal. Open to buy leads you to order the right amount to support your anticipated sales at the turn rates you wish to achieve. A good open to buy system will additionally monitor each of your departments, show trends and allow you to continually revise your projections to keep your buying on target.
Open to buy will guide you from 80/20 (or whatever your percentages might be) toward the ideal of 100/100. As you move your store toward 100/100, you will see a dramatic increase in customer satisfaction, employee satisfaction, and your bank account.
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?
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