Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet
To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:
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
: Inventory that has been purchased but not yet received. 3 Reasons to Use an OTB Spreadsheet
: Forecasted revenue based on historical data and current trends.
Alternatively, some retailers include stock in the deduction to find the exact remaining budget:
Maximizing Retail Profit with an Open-to-Buy Excel Spreadsheet
To build your spreadsheet, you need to understand the fundamental calculation. The standard retail formula for OTB (expressed in retail dollars) is:
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
: Inventory that has been purchased but not yet received. 3 Reasons to Use an OTB Spreadsheet
: Forecasted revenue based on historical data and current trends.
Alternatively, some retailers include stock in the deduction to find the exact remaining budget: