How Should Your Open-To-Buy Plan Be Figured?
There are methods for preparing an Open-To-Buy plan based on each of three elements: units, cost, or retail; or on a combination of two of these three elements, such as units and cost or units and retail or cost and retail. We have incorporated into ProphetLine POS Software only retail method because it best utilizes the markdowns and discounts to give you a more accurate number.
We believe an Open-To-Buy should be prepared at retail and only retail. We also allow you to do your inventory by average, FIFO or retail. If your store’s sales are made at retail and inventory is needed to meet sales plans; therefore, it makes sense that inventory should be managed at retail and buying plans to meet sales goals should be made at retail. Once it has been planned at retail it is a simple task to convert the retail dollars to either cost or units. When you go to market, this is the best way to properly plan for that buying season.