OpenToBuy.co APP HOW TO'S + FAQ'S
Here are some specific details for you once you dig into setting up your first sheet. The questions below compliment our in-app instructions as well as our FAQ page.
HOW DO I SET UP MY OpenToBuy.co SHEET?
First, make sure you're using a Chrome, Edge or Firefox browser on your laptop or desktop (phones + tablets are not compatible), sorry "Safari" DOES NOT work at this time. When you log in for the first time, simply tap/click instructions and you'll have step-by-step instructions to follow, while you can also follow along on the video below as creator, Larry Hebert walks you through each step and gives a bit of background.
HOW DO I SET UP MY OpenToBuy.co SHEET?
First, make sure you're using a Chrome, Edge or Firefox browser on your laptop or desktop (phones + tablets are not compatible), sorry "Safari" DOES NOT work at this time. When you log in for the first time, simply tap/click instructions and you'll have step-by-step instructions to follow, while you can also follow along on the video below as creator, Larry Hebert walks you through each step and gives a bit of background.
IMPORTANT NOTE
Be sure to use the "SAVE" button atop your sheet. But when you do click it, just wait until you see the "Saved Successfully" window appear at the top. If it doesn't appear within 15 seconds, go ahead and click again. Occasionally with wifi & network connection issues, it may just take a second click.
Be sure to use the "SAVE" button atop your sheet. But when you do click it, just wait until you see the "Saved Successfully" window appear at the top. If it doesn't appear within 15 seconds, go ahead and click again. Occasionally with wifi & network connection issues, it may just take a second click.
all set up?
here's the cheat sheet
If you're all set up and ready to go, be sure to download our "Cheat Sheet" so you know what to do each month, everytime you purchase inventory as well as how to keep your "Sheet" optimized. Download and keep it somewhere handy.
| Cheat Sheet for OpenToBuy.co |
step-by-step videos to help you
(We recommend watching at full size | Click settings icon to select highest quality)
WHAT IS AN OPEN TO BUY?
An “open to buy” is a financial plan and strategy for retailers to purchase goods to sell based on actual and forecasted sales, cost of goods sold, a base inventory and annual inventory turns. These work in tandem to provide the buyer with a plan of how much to purchase in alignment with product categories to maximize the invested dollars and eliminate over or under purchasing which leads to cash flow and profitability issues.
HOW CAN OTB.CO SAVE RETAILERS MONEY?
OTB.co will save retailers money by ensuring the business has ample inventory to sell its customers and in the proper categories. Having excessive inventory lowers annual inventory rates and ties up cash in goods and forces “sales” at lower prices to eliminate inventory. Having too little inventory causes too rapid a turnover of goods and missed sales from a lack of adequate inventory levels on-hand. And not having product categories aligned with historical sales in each will cause categories to have too much, or too little inventory causing missed sales or stagnant product that does not sell. This will cause cash flow issues and loss of profits.
WHAT IS COGS DIFFERENTIAL?
The COGS Differential is the difference in the amount of product sold vs what is forecasted for the month. This is tied directly to the base inventory and what needs to be purchased to ensure ample product is available to meet sales forecasts.
WHAT IS ACTUAL + PROJECTED COGS?
When the initial OTB.co sheet is setup forecasted sales are entered my month for the year to create the purchasing needs of the company. Actual sales may differ from projections the COGS will vary, thus when inputted into the sheet at the end of a month the inventory needs will adjusted to reflect the changes. The actual + projected COGS for the year what are has been sold + what is anticipated to be sold as each month of sales is entered.
WHAT IS CATEGORY OTB & OTB REMAINING?
HOW IS IT CALCULATED?
The Category OTB is the amount of product that needs to be purchased in a specific Product Category to maximize the retailer’s investment. OTB Remaining is the difference of what is allocated for the category less what has been purchased to date. The Category OTB is calculated as a % of the overall sales based on historical data from the store’s POS system or other tracking methods.
WHAT DO I ENTER AS MY FIRST MONTH?
The OTB.co is developed to allow a user to select any month they want to begin and establish their 12-month purchasing schedule. The month started has no impact on the OTB or purchasing as it’s a 12-month annual plan.
HOW DO I DETERMINE THE PRODUCT CATEGORY %? WHERE DO I GET THE INFO?
POS systems used in today’s retail environment collate merchandise sold and place in product categories. Many categories will have related products that can be added together to streamline the process. Once all related products are included and sales numbers are apparent, what % of the overall sales does the Product Category represent? That will determine the OTB for each Product Category. The “rule of thumb” is how many categories represent 85%-90% of the business? Typically, 6-8 categories represent 85%-90% of all sales. These would be the key Product Categories to follow with all remaining categories being Miscellaneous.
HOW DO I DETERMINE THE PRODUCT CATEGORY %? WHERE DO I GET THE INFO?
POS systems used in today’s retail environment collate
CAN I CHANGE THE PRODUCT CATEGORY %?
HOW DO I DETERMINE THE CHANGE?
Yes, Product Category % can be changed at any time. Keep in mind that the total for all Product Categories must equal 100%. So, if one category is adjusted, one or more other categories must be changed to ensure the total Product Category % is 100%. It is recommended the POS system be checked every 2-3 months to determine if Product Categories have changed from the initial forecast. This would signify a behavioral change in the customers’ buying patterns and needs to be accounted for.
WHAT IF I HAVE MORE CATEGORIES THAN WHAT'S PROVIDED?
This is part of our SECRET SAUCE that any of our rock star retailers will tell you is the magic of OpenToBuy.co. The fact that your money should be invested in the categories that make you 80-85% of your income is vital. That's why there are 9 categories to work with. The miscellaneous items that make up 10-15% of your income shouldn't be your focus. Unfortunately, we find a lot of retailers have spending that doesn't match up with the % of income they make in each primary category, they're underbuying in primary categories and overbuying in the lesser categories...many first time users upon setting up their "Sheet" see immediately that they are spending up to 5-figures over in what's making them 5-10% of their annual income, and that money should be spent acquiring inventory in the categories that make them 80% of their income.
If you have any questions on this, be sure to message Larry and he will hop on zoom to personally help you, just visit our Contact Us page.
HOW DO I KNOW HOW MUCH I HAVE TO PURCHASE EACH MONTH?
END OF THE YEAR?
At the bottom of the OTB.com sheet is “OTB Remaining”. This is a calculation of how much is available to purchase for the month, or how much a buyer has overspent for the month and is cumulative for each subsequent month. This is derived from the beginning inventory for the month + purchases made for the month less the COGS for each month.
HOW DO I START THE NEXT YEAR WITHOUT NEEDING TO PURCHASE A NEW SHEET?
Deleting the information in Sales revenue, Product Category purchases, Category %, Annual Turns and Beginning Inventory areas will provide the user with a “new” sheet and not have to eliminate any vendor names. This is very easily done and will take 5-10 minutes.
A detailed explanation is coming soon!
