Open To Buy FAQs
What is the most important reason to have open-to-buy
software? Your bottom
line. You can achieve far superior results just by having an
accurate o-t-b for every classification; something that is virtually
impossible with spreadsheets, and far too expensive with otb
consultants. Optimum inventory improves every retail performance standard
including Turns, COGS, ROI, Inventory balance, Stock to Sales Ratio and
Gross Margins.
How much difference does OTBW make?
Our customers have experienced 3-8% improvement in gross margins.
In a $500,000 shop, that adds $15,000 - $40,000 to the bottom line.
Typically it takes LESS average inventory to do this. By investing
less - you actually profit more. This is
possible because OTBW optimizes inventory for every
classification every month, and keeps them dynamically updated with current inventory
and Purchase Order information. You never run short and you never
have too much!
What Are the Benefits?
If you use OTBW as recommended, you will achieve:
1. Better stock to sales ratio
2. Higher Turn ratio
3.
Better inventory balance
4. Better Return on Investment
5.
No overstocking or understocking
6. Higher Gross margins
7.
Better Cash Flow
8. Less stale merchandise
9. Fewer
Markdowns
How Much Time Will OTBW Take?
It takes the same amount of time or less than any provider program or spreadsheet
that is updated regularly.
You must generate the data to update any of those systems. The
OTBW difference is that you enter it directly in your own fill-in-the-blanks
program and then see your reports instantaneously. An average time
may be (2) hours setup and (1) hour per month.
How Does OTBW Work?
OTBW is an
online program which can be subscribed to for a low setup fee and
monthly fee, has unlimited telephone and email support, is customized to
your shop and classifications. You log on and manage your own program,
with our support when needed.
Is the program accurate?
Far
more accurate than any other method. the reason is that OTBW
calculates inventory needs for every classification.
Most providers or spreadsheets simply cannot do
this, or it is far too expensive or time consuming.
Do I program OTBW for the amount of
inventory I want, or does OTBW calculate the amount of inventory I
should have?
Your choice.
OTBW allows you to choose your own performance levels (turns, etc) and
then calculates the amount of inventory you should have in every
classification, or you can override it with the amount you would
prefer.
What is the Greatest Inventory Mistake most Shop
Managers Make?
Failing to mark down and liquidate
stale merchandise, which means continuing to buy into already
over-stocked conditions. Any spreadsheet, vendor or any
other "o-t-b" method that permits this is not an open-to-buy; it
is just a decision to continue purchasing without respect to inventory
levels. This is both self-defeating and self-perpetuating.
Is it Complicated to Use?
OTBW is a fill-in-the-blanks program that is easy to learn and
manage.
Can Data be Entered Automatically from a
POS?
Yes. There is a small monthly programming fee.
Will OTBW Limit my Options?
You
have the same options you have always had, but more and better
information on which to base your decisions.
Are the Solutions at-Cost or at-Retail?
Either or both - it is your choice. One click.
Your Buying Goals or Vendor Sales Goals?
Vendors and reps have sales goals. They offer discounts, quotas,
incentives, etc., to persuade you to meet their goals. Open To Buy
Wizard establishes your goals to buy what you need and have it delivered
when you need it.
Then why are Vendor Reps so Enthusiastic about
OTBW?
(A) Appointments are more organized and time efficient.
(B) Buyers
know how much they need and when they want it delivered.
(C) Buyers are
not afraid to order in advance, and never have to cancel orders.
(D)
With a good sell through (at full price), fewer markdowns, and no stale
stock, buyers will be back next year for more!
I am an Executive in a Retail Chain or Golf
Management Group
Management Companies should be the first to embrace new technology
which allows optimized inventory investment, margin improvements, plus
greater employee productivity and accountability.
What about our POS System?
OTBW
is compatible with any POS system. End of Month reports are
used to update OTBW. It takes about :06 minutes if done manually
or can be done automatically.
"Open to buy" spreadsheets work - why
should I buy software?
Our customers include some
of the best ex-spreadsheet users and their results are living proof that
otb spreadsheets are outdated and very costly in terms of margin
dilution. Ask yourself (1) if your spreadsheets calculate an otb
for every sub-classification, and (2) all reports are updated 24/7.