WHAT PERCENTAGE OF MY OTB SHOULD I LEAVE OPEN FOR IN-SEASON PURCHASES?
Q: In the past, you have suggested leaving a percentage of your OTB available for in-season purchases. Has your opinion on this subject changed, and if so, what percentage are you now recommending?
Steve Pruitt: Yes, here at Blacks we still suggest leaving a portion of your OTB open for in-season purchases. The type of store you have will determine the percentage of OTB you need to hold back. For example: If your store is conventional, you should be able to buy most categories in-season, so hold open 20-30% of your OTB for those purchases. If your store is fashion-forward, cut the percentage down to 15% because the type of merchandise you sell is not as easily available once you are in season. The most difficult type of store to hold OTB open for is a designer store. This product is typically not available in season, and thus requires buying almost all of it upfront, perhaps as much as 95%. Each store is different, but these basic rules can help you navigate the best way to operate your business. Thanks for the question.
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