To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:
: The retail value of stock on hand at the start of the period.
: Forecasted revenue based on historical data and current trends. open to buy excel spreadsheet
Open-to-Buy=(Planned Sales+Planned Markdowns+Planned Ending Inventory)−Planned Beginning InventoryOpen-to-Buy equals open paren Planned Sales plus Planned Markdowns plus Planned Ending Inventory close paren minus Planned Beginning Inventory
: Anticipated discounts or promotions that will reduce the retail value of your inventory. To build your spreadsheet, you need to understand
Alternatively, some retailers include stock in the deduction to find the exact remaining budget:
At its core, OTB is an inventory budgeting system. It calculates the dollar amount or unit count of merchandise a retailer has available to purchase after accounting for current stock on hand and outstanding orders. The Core OTB Formula The Core OTB Formula Maximizing Retail Profit with
Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet