Unlocking the Open to Buy Vegas 2010 - PGA Sho Calculating Average Inventory Needs Planning Monthly Inventory Levels Developing an Open-to-Buy plan Managing an Open-to-Buy Plan …

OPEN-TO-BUY BASICS

Presented By: Tracy Moffatt

AGM Education Team K&K Consulting

1

Calculating Average Inventory Needs

Planning Monthly Inventory Levels

Developing an Open-to-Buy plan

Managing an Open-to-Buy Plan

Average Inventory levels are determined using Cost of Sales plan and Turnover goal

“The Calculation” The CalculationCost of Sales Plan ÷ Turnover Goal =

Average Inventory Plan

This number must then be adjusted up or down for each month depending on sales curve

Calculation Cost of Sales Plan ÷ Turnover Goal = Average

Inventory PlanCost of Sales Plan $152,400

T G l 2 0÷ Turnover Goal ÷ 2.0= Average Inventory plan $ 76,200

On average, $76,200 of inventory is needed each month

Where do the numbers come from?

2

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DEC 31 TOTAL

RETAIL SALES LAST YEAR

2000 5000 8900 28200 31500 34500 31000 28000 19000 9000 5400 16900 219400

% TO TOTAL 0.9% 2.3% 4.1% 12.9% 14.4% 15.7% 14.1% 12.8% 8.7% 4.1% 2.5% 7.7% 100.0%

COST OF SALES LAST YEAR

2000 4000 6500 18000 22000 23000 22000 19000 13000 7000 4000 15000 155500

COS % 100.0% 80.0% 73.0% 63.8% 69.8% 66.7% 71.0% 67.9% 68.4% 77.8% 74.1% 88.8% 70.9%

ROUNDS LAST YEAR 0 0 100 2500 3500 6000 5500 4300 3200 1800 100 0 27000

RETAIL SALES / COST OF SALES / ROUNDS / INVENTORY FORECAST

$ PER ROUND $0.00 $0.00 $89.00 $11.28 $9.00 $5.75 $5.64 $6.51 $5.94 $5.00 $54.00 $0.00 $8.13

BEGINNING OF MONTH INVENTORY

56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000

RETAIL SALES PLAN 1500 4500 8000 28000 33000 37000 34000 30000 19000 9000 5000 15000 224,000

% TO TOTAL 0.7% 2.0% 3.6% 12.5% 14.7% 16.5% 15.2% 13.4% 8.5% 4.0% 2.2% 6.7% 100.00%

COST OF SALES PLAN 1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500 152400

COS % 86.7% 84.4% 75.0% 64.3% 69.7% 64.9% 64.7% 66.7% 71.1% 72.2% 76.0% 70.0% 68.0%

ROUNDS PLAN 0 0 100 2500 3600 5800 5800 4300 3200 1600 100 0 27000

$ PER ROUND PLAN $0.00 $0.00 $80.00 $11.20 $9.17 $6.38 $5.86 $6.98 $5.94 $5.63 $50.00 $0.00 $8.30


TURNOVER LAST YEAR

155,500

AVERAGE INVENTORY L/Y

COST OF SALES PLAN

AVERAGE INVENTORY PLAN

TURNOVER GOAL

152,400

76,200

2.0

92,231

1.7



2000 5000 8900 28200 31500 34500 31000 28000 19000 9000 5400 16900 219400

% TO TOTAL 0.9% 2.3% 4.1% 12.9% 14.4% 15.7% 14.1% 12.8% 8.7% 4.1% 2.5% 7.7% 100.0%


2000 4000 6500 18000 22000 23000 22000 19000 13000 7000 4000 15000 155500

COS % 100.0% 80.0% 73.0% 63.8% 69.8% 66.7% 71.0% 67.9% 68.4% 77.8% 74.1% 88.8% 70.9%

ROUNDS LAST YEAR 0 0 100 2500 3500 6000 5500 4300 3200 1800 100 0 27000

Last years Retail Sales and Cost of Sales by month From General Ledger or Budget POS System

Dollar per Round Tee Sheets – Starters Report POS system

$ PER ROUND $0.00 $0.00 $89.00 $11.28 $9.00 $5.75 $5.64 $6.51 $5.94 $5.00 $54.00 $0.00 $8.13



% TO TOTAL 0.7% 2.0% 3.6% 12.5% 14.7% 16.5% 15.2% 13.4% 8.5% 4.0% 2.2% 6.7% 100.00%


COS % 86.7% 84.4% 75.0% 64.3% 69.7% 64.9% 64.7% 66.7% 71.1% 72.2% 76.0% 70.0% 68.0%

ROUNDS PLAN 0 0 100 2500 3600 5800 5800 4300 3200 1600 100 0 27000

Retail Sales Plan by month Use Dollar per Round Plan realistic improvement

Adjust to reflect current trends

Sales x COS % = Cost of Sales in Dollars Plan month by month Adjust to reflect current trends

$ PER ROUND PLAN $0.00 $0.00 $80.00 $11.20 $9.17 $6.38 $5.86 $6.98 $5.94 $5.63 $50.00 $0.00 $8.30

3



56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000


TURNOVER LAST YEAR

155,500


COST OF SALES PLAN


TURNOVER GOAL

152,400

76,200

2 0

92,231

1 7

Calculating Average Inventory Last Year

Sum of BOM Inventory Month 1-12 $1,108,500+ Month 12 EOM Inventory $ 90,500

$1,119,000÷13 ÷ 13= Average Inventory $92,231

TURNOVER LAST YEAR TURNOVER GOAL 2.01.7



56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000


TURNOVER LAST YEAR

155,500


COST OF SALES PLAN


TURNOVER GOAL

152,400

76,200

2.0

92,231

1.7

Calculating Turnover Last Year

Cost of Sales for the year $ 155,500÷ average inventory ÷ $92,231= Turnover = 1.7 turns



56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000

COST OF SALES LAST YEAR 155,500


COST OF SALES PLAN


152,400

76,20092,231

Establishing turnover goal Look at last years results Plan realistic improvement Plan increase of .5 to 1 turn per year

TURNOVER LAST YEAR TURNOVER GOAL 2.01.7

4



56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000


TURNOVER LAST YEAR

155,500


COST OF SALES PLAN


TURNOVER GOAL

152,400

76,200

2.0

92,231

1.7

Calculating average inventory

Cost of Sales Plan $152,400Divide by Turnover Goal ÷ 2.0= Average Inventory plan $76,200

Reduction of $16,031 to previous years actual average inventory

Cost of Sales Plan $152,400÷ Turnover Goal ÷ 2.0= Average Inventory plan $76 200 Average Inventory plan $76,200

If all months were equal, you would need $76,200 in inventory each month

Next step is to establish a monthly inventory plan for the entire golf shop

Average inventory is adjusted for each month Higher or lower based on % month’s retail sales

are to the total year’s retail sales Be mindful of minimum inventory levels for off

season monthsseason months When complete, average inventory for the year

must remain the same

Two Methods: 8.3% Formula Excel Spreadsheets

5

8.3% Formula

If all months were equal they would be 8.3% of inventory needs

Adjust months up or down based on +/- to 8.3%

If month is 12.3%:12.3 – 8.3 = 4 Raise average inventory 40%

Month % to total Avg Rate +/- avg rate % adj to avg inv Avg Inventory $ adj to avg inv BOM InvJanuary 4% 8.30% -4.3% -40% 76,200.00$ (30,480.00)$ 45,720.00$ February 5% 8.30% -3.3% -30% 76,200.00$ (22,860.00)$ 53,340.00$ March 7% 8.30% -1.3% -10% 76,200.00$ (7,620.00)$ 68,580.00$ April 9% 8.30% 0.7% 10% 76,200.00$ 7,620.00$ 83,820.00$ May 11% 8.30% 2.7% 30% 76,200.00$ 22,860.00$ 99,060.00$ y , , ,June 12% 8.30% 3.7% 30% 76,200.00$ 22,860.00$ 99,060.00$ July 12% 8.30% 3.7% 30% 76,200.00$ 22,860.00$ 99,060.00$ August 12% 8.30% 3.7% 30% 76,200.00$ 22,860.00$ 99,060.00$ September 10% 8.30% 1.7% 10% 76,200.00$ 7,620.00$ 83,820.00$ October 8% 8.30% -0.3% 0% 76,200.00$ -$ 76,200.00$ November 5% 8.30% -3.3% -30% 76,200.00$ (22,860.00)$ 53,340.00$ December 5% 8.30% -3.3% -30% 76,200.00$ (22,860.00)$ 53,340.00$

total 914,400.00$ avg inv 76,200.00$

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

$ PLAN 1500 4500 8000 28000 33000 37000 34000 30000 19000 9000 5000 15000 224000

% OF YEAR 4.0% 5.0% 7.0% 9.0% 11.0% 12.0% 12.0% 12.0% 10.0% 8.0% 5.0% 5.0% 100%

RETAIL SALES PLAN

COST OF SALES PLAN


$ PLAN 1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500 152400

COS % 83.3% 86.7% 76.2% 72.2% 69.7% 69.4% 73.6% 69.4% 71.7% 87.5% 83.3% 80.0% 68.0%

AVERAGE INVENTORY

PLAN JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

ACTUAL AVERAGE

INV

76200 50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 76231

COST OF SALES PLAN

MONTHLY INVENTORY PLAN

6


$ PLAN 1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500 152400

COS % 83.3% 86.7% 76.2% 72.2% 69.7% 69.4% 73.6% 69.4% 71.7% 87.5% 83.3% 80.0% 68.0%

COST OF SALES PLAN

AVERAGE INVENTORY


ACTUAL AVERAGE

INV

76200 45720 53340 68580 83820 99060 99060 99060 99060 83820 76200 53340 53340 76200

AVERAGE INVENTORY


ACTUAL AVERAGE

INV

76200 50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 76231

SPREADSHEET METHOD

8.3% METHOD

You now have an inventory plan to follow when purchasing merchandise

Ideally, inventory plan is developed for each department and in some cases classification Adjust for differences in cost of sale percentage Adjust for differences in turnover goal Ensure total of all individual plans matches total

golf shop plan

Now you are ready to run an Open to Buy

Gives you a Cash Flow planGives the buyer a “checkbook”Allows for consistent planned flow of

merchandise – one month prior to desired selling periodselling period Guide for placing orders Plan for holding reserves

An annual planning process Developed for total shop Broken down by Department

7

A monthly review process Indicates need to react to current trends Place additional purchases Address slow selling merchandise Adjust future shipmentsAdjust future shipments

Improves profitability Improves opportunity to meet cost of sales

and turnover goals

Department Total Shop Year: 2010

JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500

50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 50000

50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000

1300 13800 28000 43000 36000 17000 2000 2000 6500 1500 800 500

OPEN TO BUY & ON-ORDER LOG

MONTH

Current Month's Planned Cost of Sales+ Next Month's Planned Inventory

- Current Month's Planned (or Actual) Inventory= Cost Buy Plan (planned OTB)

0 13520 17761 33411 31343 9948 1830 0 0 0 0 0

1300 2500 5000 7000 7000 3000 500 500 3000 1500 800 500 Total0 -2220 5239 2589 -2343 4052 -330 1500 3500 0 0 0 11987

VendorShip Date

Date R'cd Description JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

Vendor A 3/20 Navy/Purple/Teal 1650

5/1 Khaki/White 3000

Vendor B 2/20 1/26 Green/Yellow 1900

3/15 Red/Black 1250

5/25 Tech Pastels 3000

Comments

- Current On Order- Reserve & Special Orders

Actual Open to Buy

shipped early (rcd. dating)

Current Month’s Planned Cost of Sales

+ Next Month’s Planned Inventory

- Current Month’s Planned (or Actual) Inventory

= Cost Buy Plan (Planned OTB)

- On-Order & Reserves & Special Orders (at cost)

= Actual Open to Buy for Month

8

Department Total Shop

JAN FEB MAR APRIL MAY JUNE

1300 3800 6000 18000 23000 24000

MONTH

C t M th' Pl d C t f S l 1300 3800 6000 18000 23000 24000

50000 60000 82000 107000 120000 113000

50000 50000 60000 82000 107000 120000

1300 13800 28000 43000 36000 17000

0 13520 17761 33411 31343 9948

1300 2500 5000 7000 7000 3000

0 -2220 5239 2589 -2343 4052




Actual Open to Buy


$ PLAN 1500 4500 8000 28000 33000 37000 34000 30000 19000 9000 5000 15000 224000

% OF YEAR 4.0% 5.0% 7.0% 9.0% 11.0% 12.0% 12.0% 12.0% 10.0% 8.0% 5.0% 5.0% 100%

RETAIL SALES PLAN

COST OF SALES PLAN

MONTHLY INVENTORY PLANNING


$ PLAN 1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500 152400

COS % 83.3% 86.7% 76.2% 72.2% 69.7% 69.4% 73.6% 69.4% 71.7% 87.5% 83.3% 80.0% 68.0%

AVERAGE INVENTORY


ACTUAL AVERAGE

INV

76200 50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 76231

COST OF SALES PLAN

MONTHLY INVENTORY PLAN




Month % to total Avg Rate +/- avg rate % adj to avg inv Avg Inventory $ adj to avg inv BOM InvJanuary 4% 8.30% -4.3% -40% 76,200.00$ (30,480.00)$ 45,720.00$ February 5% 8.30% -3.3% -30% 76,200.00$ (22,860.00)$ 53,340.00$ March 7% 8.30% -1.3% -10% 76,200.00$ (7,620.00)$ 68,580.00$ April 9% 8.30% 0.7% 10% 76,200.00$ 7,620.00$ 83,820.00$ May 11% 8.30% 2.7% 30% 76,200.00$ 22,860.00$ 99,060.00$

9



1300 3800 6000 18000 23000 24000

MONTH

Current Month's Planned Cost of SalesN M h' Pl d I

Insert Planned Cost of Sales and Planned Inventory numbers in designated row

Planned OTB will be calculated

50000 60000 82000 107000 120000 113000

50000 50000 60000 82000 107000 120000

1300 13800 28000 43000 36000 17000

1300 13800 28000 43000 36000 17000

+ Next Month's Planned Inventory - Current Month's Planned (or Actual) Inventory

= Cost Buy Plan (planned OTB)- Current On Order

- Reserve & Special OrdersActual Open to Buy



1300 3800 6000 18000 23000 24000

MONTH

Current Month's Planned Cost of Sales

Reserves: Minimum of 15 – 25% of Cost Buy Plan If you plan to buy closeouts – hold the money

now

1300 3800 6000 18000 23000 24000

50000 60000 82000 107000 120000 113000

50000 50000 60000 82000 107000 120000

1300 13800 28000 43000 36000 17000

1300 2500 5000 7000 7000 3000

Current Month s Planned Cost of Sales+ Next Month's Planned Inventory





1300 3800 6000 18000 23000 24000

MONTH

Current Month's Planned Cost of Sales

Special Orders: If you track these separately use that information to reserve adequate dollars from Cost Buy Plan

50000 60000 82000 107000 120000 113000

50000 50000 60000 82000 107000 120000

1300 13800 28000 43000 36000 17000

1300 2500 5000 7000 7000 3000

0 11300 23000 36000 29000 14000

+ Next Month's Planned Inventory - Current Month's Planned (or Actual) Inventory



10

Can cause overstocks in Golf Shops Reserve dollars from Open to Buy plan to

prevent overbuying and increased inventory levels in high Special Order Departments

Failing to hold reserves means every special Failing to hold reserves means every special order taken equates to that amount of additional inventory in your Golf Shop

Each order means you didn’t sell merchandise from golf shop so your inventory was not reduced

Very important to track in shoes and clubs


1300 3800 6000 18000 23000 24000

50000 60000 82000 107000 120000 113000

50000 50000 60000 82000 107000 120000

1300 13800 28000 43000 36000 17000

0 13520 17761 36411 31343 9948

1300 2500 5000 7000 7000 3000

MONTH




On-order: enter any orders already placed in the On-Order Log below

Don’t forget Pre-books

0 -2220 5239 -411 -2343 4052

VendorShip Date

Date R'cd Description JAN FEB MAR APRIL MAY JUNE




3/15 Red/Black 1250

Actual Open to Buy

Tool for reacting to Open to BuyTrack all vendorsPlan delivery timing Plan floor presentationPlan floor presentationChallenge if delivery dates are not metUse records for choosing vendors next

seasonUse for dealing with tough buying

decisions next season

11


1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500

50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 50000

50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000

1300 13800 28000 43000 36000 17000 2000 2000 6500 1500 800 500

0 13520 17761 33411 31343 9948 1830 0 0 0 0 0

1300 2500 5000 7000 7000 3000 500 500 3000 1500 800 500

0 -2220 5239 2589 -2343 4052 -330 1500 3500 0 0 0

MONTH




Actual Open to Buy 0 2220 5239 2589 2343 4052 330 1500 3500 0 0 0

VendorShip Date





3/15 Red/Black 1250


Vendor C 3/1 Grey/Black 2280

4/15 Blue/Yellow 3100

6/15 Red/White/Blue 1800

Actual Open to Buy

Major Cause of Overstocks in Golf Shops!!! Benefits Terms, Discounts, Rebates Convenient – Buys all done at once Suggested order done by Rep Suggested order done by Rep

Risks Reps orders based on units shipped not units

sold Discounts and Terms not taken Excessive Inventory – Decreased Turnover –

Increased Markdowns Change of product line mid-season

Planning with Pre-books and Programs Use previous SALES records and adjust to trend Know Vendor Profitability Be prepared – have your own numbers Spend only dollars in Buy Plan!!! Challenge monthly and adjust orders Ensure all Terms and Discounts are received

Programs don’t sell merchandise – the right product, price, and people do!!!

12

Open to Buy for March:COS for March $ 6,000

+ Inv Plan for April $82,000

- Inv Plan for March $60,000= Planned OTB $28,000

- On Order $ 0

- Reserves & S/O $ 5,000

= Actual Open to Buy $23,000

This number is for planning purposes only –for placing appropriate buys

Your “checkbook” is now created and you are ready to buy in a logical and profitable way!

Don’t forget to analyze all your vendor’s profitability Hold dollars for new vendors

Divide Open to Buy Plan by department based on percentage each department is of your total shop If men’s is 40% of your business they receive 40%

of the Open to Buy dollars You may want to create and open to buy and

on-order log for each department

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC OPEN TO BUY PLAN

1300 13800 28000 43000 36000 17000 2000 2000 6500 1500 800 500 152400

1300 2500 5000 7000 7000 3000 500 500 3000 1500 800 500 32600

0 11300 23000 36000 29000 14000 1500 1500 3500 0 0 0 119800

LAST YEAR THIS YEAR

PLANNED OPEN TO BUY

- RESERVES

ADJUSTED BUY PLAN

TOTAL SHOP OPEN TO BUY PLAN

Dollars can now be spent based on season you are buying for

RETAIL SALES

% TO TOTAL

TOTAL SALES 219400 100.0% 100.0%

MEN'S 83372 38.0% 40.0% 0 4520 9200 14400 11600 5600 600 600 1400 0 0 0 47920

WOMEN'S 10970 5.0% 6.0% 0 678 1380 2160 1740 840 90 90 210 0 0 0 7188

HARDGOODS 74596 34.0% 34.0% 0 3842 7820 12240 9860 4760 510 510 1190 0 0 0 40732

EQUIPMENT 50462 23.0% 20.0% 0 2260 4600 7200 5800 2800 300 300 700 0 0 0 23960

DEPARTMENT OPEN TO BUY PLAN

YEAR PLAN %

13

Men’s Buy Plan $47,920

VendorSales % LY

Sales % Plan

$ Buy Plan

# Groups / Pieces

Actual Buy

Vendor A 17% 15% 71884 Groups @ 40 pcs.

heach

Vendor B 8% 10% 4792 Basics – Fill in as needed

Vendor C 12% 15% 7188 4 Groups

Vendor D&E 22% 23% 11021 Tech Fabrics

New Lines 12% 5751 3 Groups

Outerwear 15% 15% 7188

Accessories 10% 10% 4792

TOTAL 100% 47920

Place orders with vendors Make adjustments to Vendor plan as needed Stay within Open to Buy Dollars

Record in Open to Buy & On-Order Log Actual Open to Buy will be reduced based on

orders placed Avoid negative numbers!!! Adjust shipping dates Cut quantities back

Don’t spend the reserves!!! Remember – it is just a plan

First of Month Replace “current month planned inventory” with

actual inventory dollars From Physical Inventory if you have taken one From POS System if you did not take count From POS System if you did not take count

Analyze Actual Open to Buy Positive Number indicates money you may need

to spend Negative Number indicated amount you are

currently overbought

14

Plan after all orders placed for season:

COS for March $ 6,000


- Inv Plan for March $60,000

= Planned OTB $28,000- On Order $17,761


= Actual Open to Buy $ 5,239

March 1st actual inventory $69,000:



- Actual Inv. March 1 $69,000



= Actual Open to Buy $ -3,761



1300 3800 6000 18000 23000 24000

50000 60000 82000 107000 120000 113000

50000 50000 69000 82000 107000 120000

1300 13800 19000 43000 36000 17000

0 13520 17761 36411 31343 9948

1300 2500 5000 7000 7000 3000 Total- Current On Order

- Reserve & Special Orders


MONTH



0 -2220 -3761 -411 -2343 4052 -13

VendorShip Date





3/15 Red/Black 1250






Comments

Actual Open to Buy

15

Overbought – negative number Are Sales at Cost lower than planned? Determine why – are adjustments needed?

How are Retail Sales? How are Rounds? Did you receive any orders early? Did you receive any orders late? What is the weather like? Are you seeing any trends you need to

react to?

Overbought – negative number If you need to react: Address slow selling merchandise Are there markdowns you need to take?y Can you return any merchandise?

Move future shipments out Cancel future orders Slow selling styles or colors

Plan a great promotion Improve presentation

January 1st actual inventory $54,000 :



- Actual Inv. March 1 $54,000



= Actual Open to Buy $11,239

16



1300 3800 6000 18000 23000 24000

50000 60000 82000 107000 120000 113000

50000 50000 54000 82000 107000 120000

1300 13800 34000 43000 36000 17000

0 13520 17761 36411 31343 9948

1300 2500 5000 7000 7000 3000 Total


MONTH




0 -2220 11239 -411 -2343 4052 14987

VendorShip Date





3/15 Red/Black 1250





Comments

Actual Open to Buy


Underbought – positive number Is Cost of Sales greater than planned? Have you taken too many markdowns? Are you marking merchandise up enough?

Are Retail Sales greater than expected? Do you need to adjust plans?

Are Rounds of Golf up?? Did you have a large event? What items sold well last month? Do you see any trends?

Underbought – positive number If you need to react: Use caution Reorder if you cany Move future orders up Increase future orders Place additional purchases Try a new line Look for closeouts

17

Other Questions to ask before adjusting orders: How do the next few months look? Did I underbuy March and overbuy April?

Did any merchandise ship early or late? Do I own lots of off-price merchandise Are there any large credits you are waiting

for? Has weather been a factor? What is the economic forecast?

It is only a plan The time spent developing it will be

rewarded with better buying and inventory controls

You will create more sales with less inventory if an Open to Buy is followed

Open to Buy must be analyzed monthly and reacted to!! One hour spent the first of every month

will save you many markdowns

Tracy Moffatt

K&K ConsultingK&K ConsultingAGM Education Team

[email protected]

18

“The Educational Voice in Golf Merchandising”

602-604-8250www.agmgolf.org

All AGM educational materials are protected by U.S. Copyright All AGM educational materials are protected by U.S. Copyright and cannot be reprinted or used without the expressed and cannot be reprinted or used without the expressed

written consent of the Association of Golf Merchandisers.written consent of the Association of Golf Merchandisers.



2000 5000 8900 28200 31500 34500 31000 28000 19000 9000 5400 16900 219400

% TO TOTAL 0.9% 2.3% 4.1% 12.9% 14.4% 15.7% 14.1% 12.8% 8.7% 4.1% 2.5% 7.7% 100.0%


2000 4000 6500 18000 22000 23000 22000 19000 13000 7000 4000 15000 155500

COS % 100.0% 80.0% 73.0% 63.8% 69.8% 66.7% 71.0% 67.9% 68.4% 77.8% 74.1% 88.8% 70.9%

ROUNDS LAST YEAR 0 0 100 2500 3500 6000 5500 4300 3200 1800 100 0 27000

$ PER ROUND $0.00 $0.00 $89.00 $11.28 $9.00 $5.75 $5.64 $6.51 $5.94 $5.00 $54.00 $0.00 $8.13


56000 54000 53000 73500 94500 106500 114500 117500 116500 111500 106500 104500 90500 1199000


% TO TOTAL 0.7% 2.0% 3.6% 12.5% 14.7% 16.5% 15.2% 13.4% 8.5% 4.0% 2.2% 6.7% 100.00%


COS % 86.7% 84.4% 75.0% 64.3% 69.7% 64.9% 64.7% 66.7% 71.1% 72.2% 76.0% 70.0% 68.0%

ROUNDS PLAN 0 0 100 2500 3600 5800 5800 4300 3200 1600 100 0 27000

$ PER ROUND PLAN $0.00 $0.00 $80.00 $11.20 $9.17 $6.38 $5.86 $6.98 $5.94 $5.63 $50.00 $0.00 $8.30



TURNOVER LAST YEAR

155,500


COST OF SALES PLAN


TURNOVER GOAL

152,400

76,200

2.0

92,231

1.7

OPEN TO BUY

TOTAL SHOP OPEN TO BUY PLAN

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC OPEN TO BUY PLAN

1300 13800 28000 43000 36000 17000 2000 2000 6500 1500 800 500 152400

1300 2500 5000 7000 7000 3000 500 500 3000 1500 800 500 32600

PLANNED OPEN TO BUY

- RESERVES

0 11300 23000 36000 29000 14000 1500 1500 3500 0 0 0 119800

LAST YEAR THIS

ADJUSTED BUY PLAN

RETAIL SALES

% TO TOTAL

TOTAL SALES 219400 100.0% 100.0% DEPARTMENT OPEN TO BUY PLAN

LAST YEAR THIS YEAR

PLAN %

MEN'S 83372 38.0% 40.0% 0 4520 9200 14400 11600 5600 600 600 1400 0 0 0 47920

WOMEN'S 10970 5.0% 6.0% 0 678 1380 2160 1740 840 90 90 210 0 0 0 7188

HARDGOODS 74596 34.0% 34.0% 0 3842 7820 12240 9860 4760 510 510 1190 0 0 0 40732

EQUIPMENT 50462 23.0% 20.0% 0 2260 4600 7200 5800 2800 300 300 700 0 0 0 23960

D t t T t l Sh Y 2010


Department Total Shop Year: 2010


1300 3800 6000 18000 23000 24000 22000 20000 13500 6500 3800 10500

50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 50000

MONTH

Current Month's Planned Cost of Sales+ Next Month's Planned Inventory 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000 50000

50000 50000 60000 82000 107000 120000 113000 93000 75000 68000 63000 60000

1300 13800 28000 43000 36000 17000 2000 2000 6500 1500 800 500

0 13520 17761 36411 31343 9948 1830 0 0 0 0 0

1300 2500 5000 7000 7000 3000 500 500 3000 1500 800 500 Total0 -2220 5239 -411 -2343 4052 -330 1500 3500 0 0 0 8987

Ship Date

+ Next Month s Planned Inventory - Current Month's Planned (or Actual) Inventory



Vendorp





3/15 Red/Black 1250

Comments


3/15 Red/Black 1250





Documents

Unlocking the Open to Buy Vegas 2010 - PGA Sho Calculating Average Inventory Needs Planning Monthly Inventory Levels Developing an Open-to-Buy plan Managing an Open-to-Buy Plan …