Comments on: Open To Thrive – Retail Inventory Control Solution http://theretailersadvantage.net/open-to-thrive/ Your Source for YOUR Retail Success Thu, 27 May 2010 20:18:22 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Diane Lenihan http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-180 Diane Lenihan Tue, 03 Mar 2009 03:00:37 +0000 http://www.theretailersadvantage.net/?p=66#comment-180 Where do I downlaod Where do I downlaod

]]> By: Cindy Potts http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-17 Cindy Potts Mon, 08 Dec 2008 13:48:03 +0000 http://www.theretailersadvantage.net/?p=66#comment-17 If you can meet your expenses by allocating only 25% of sales, then yes, adjust the formula to 70/25/5 -- however, I would urge you to make SURE that you can meet all of your expenses with only 25% of sales. That percentage seems particularly low: are you including your rent/payroll/insurance/everything else and meeting all of that with only 25% of sales? If you can meet your expenses by allocating only 25% of sales, then yes, adjust the formula to 70/25/5 — however, I would urge you to make SURE that you can meet all of your expenses with only 25% of sales. That percentage seems particularly low: are you including your rent/payroll/insurance/everything else and meeting all of that with only 25% of sales?

]]> By: Brijesh Mehta http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-15 Brijesh Mehta Sat, 06 Dec 2008 06:44:11 +0000 http://www.theretailersadvantage.net/?p=66#comment-15 Cindy as my GM is 30 % than should i have to spare 40 % for the expenses.Isn't it much more?? And by spending 55 % on merchandise would i be under stock a the end of the year ?? Plz guide i am still confused. Cindy as my GM is 30 % than should i have to spare 40 % for the expenses.Isn’t it much more?? And by spending 55 % on merchandise would i be under stock a the end of the year ??
Plz guide i am still confused.

]]> By: Brijesh Mehta http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-14 Brijesh Mehta Sat, 06 Dec 2008 06:31:16 +0000 http://www.theretailersadvantage.net/?p=66#comment-14 Cindy thanks for the guidelines. But i would request you again to expalin more specificically. If my GM is 30 % should i make the formula to 70%-25%-5% for meeting for merchandise(70%)-Expenses(25%)- Cash Flow (5%) respectively. OR stick to 55-40-5 formula. Cindy thanks for the guidelines.
But i would request you again to expalin more specificically. If my GM is 30 % should i make the formula to 70%-25%-5% for meeting for merchandise(70%)-Expenses(25%)- Cash Flow (5%) respectively. OR stick to 55-40-5 formula.

]]> By: Cindy Potts http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-13 Cindy Potts Fri, 05 Dec 2008 14:28:12 +0000 http://www.theretailersadvantage.net/?p=66#comment-13 The formula may (and should!) vary by the type of store you have. However, you want to make sure you're allocating enough money to cover both new inventory purchases and meet your expenses. The 55% refers to 55% of your income from sales should be devoted to buying new inventory -- so if you're buying inventory that allows you a GM of 30%, you're able to purchase that amount of inventory in the ratio of 55% of sales. The danger many retailers get into is that they overbuy: you don't want to position yourself with so much money devoted to inventory that there's not enough to meet your expenses nor allow any profit. The formula may (and should!) vary by the type of store you have. However, you want to make sure you’re allocating enough money to cover both new inventory purchases and meet your expenses.

The 55% refers to 55% of your income from sales should be devoted to buying new inventory — so if you’re buying inventory that allows you a GM of 30%, you’re able to purchase that amount of inventory in the ratio of 55% of sales.

The danger many retailers get into is that they overbuy: you don’t want to position yourself with so much money devoted to inventory that there’s not enough to meet your expenses nor allow any profit.

]]> By: Brijesh Mehta http://theretailersadvantage.net/open-to-thrive/comment-page-1/#comment-9 Brijesh Mehta Thu, 04 Dec 2008 12:11:52 +0000 http://www.theretailersadvantage.net/?p=66#comment-9 The OTT you guides with the thumb rule of 55%-40%-5% for merchandise-expenses-cash flow respectively. Is this formula a constant for all stores ??. My lifestyle store has a gross margin of 30 % (mark down). Than the expense % would be the same @ 40 % ?? or the formula may vary ??? Plz guide me . The OTT you guides with the thumb rule of 55%-40%-5% for merchandise-expenses-cash flow respectively. Is this formula a constant for all stores ??.
My lifestyle store has a gross margin of 30 % (mark down).
Than the expense % would be the same @ 40 % ?? or the formula may vary ???

Plz guide me .

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