To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:
In the fast-paced world of retail, inventory is your greatest asset—but it can also be your biggest liability if not managed correctly. An plan is a strategic roadmap that helps you determine exactly how much inventory to purchase during a specific period to meet sales targets without overstocking. open to buy excel spreadsheet
While high-end retail management systems exist, an remains a solid, accessible tool for many small to medium-sized businesses to gain control over their cash flow and inventory levels. What is Open-to-Buy (OTB)? To build your spreadsheet, you need to understand
Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet While high-end retail management systems exist, an remains
A functional OTB spreadsheet should include columns for each month or week of the planning period (typically 6 to 12 months). Essential data rows include:
: Anticipated discounts or promotions that will reduce the retail value of your inventory.
OTB=Projected Sales+Planned Ending Inventory−Beginning Inventory−Already on OrderOTB equals Projected Sales plus Planned Ending Inventory minus Beginning Inventory minus Already on Order Key Components of an OTB Excel Template