Open-to-Buy Budget Calculator

Works out how much money a boutique can still spend on new merchandise for one buying season, based on planned sales, planned markdowns, stock on hand, and orders already placed.

BoutiqueRetail✓ Checkedv1.0

Before and after

BEFORE · what the owner typed

ok its Margot Espinoza, I own Redbank Mercantile at 2157 Quarrybank St in Glenbank. Need my open to buy for fall, Sept 1 to Nov 30. Im planning to sell 84,000. Markdowns I plan around 9,500 at retail. I want to end November with about 31,000 of stock at retail. Right now I have 38,500 on the floor at retail. Already got orders in that havent come yet, 22,000 at retail. My markup is 55 percent of retail. Split it like this: women's apparel 45 percent, accessories 25 percent, home goods 20 percent, candles and gifts 10 percent. My buyer Martin Gallagher wants to see it by category. Call me at 206-555-0126 if the numbers look off.

AFTER · what the skill produced

Open-to-Buy for Redbank Mercantile, Fall (September 1 to November 30)
Prepared for Margot Espinoza. All figures rounded to the nearest dollar.

Figures you gave me

Planned sales: $84,000
Planned markdowns (retail): $9,500
Planned end-of-November stock (retail): $31,000
Stock on hand now (retail): $38,500
Orders already placed (retail): $22,000
Markup: 55 percent of retail

The math

Planned purchases at retail: $84,000 + $9,500 + $31,000 - $38,500 = $86,000
Open-to-buy at retail: $86,000 - $22,000 = $64,000
Open-to-buy at cost: $64,000 x (1 - 0.55) = $64,000 x 0.45 = $28,800

By category (shares add to 100 percent)

Women's apparel, 45 percent: $28,800 retail, $12,960 cost
Accessories, 25 percent: $16,000 retail, $7,200 cost
Home goods, 20 percent: $12,800 retail, $5,760 cost
Candles and gifts, 10 percent: $6,400 retail, $2,880 cost
Total: $64,000 retail, $28,800 cost

What this means
Based on your plan, you can still bring in $64,000 of merchandise at retail, which is $28,800 in cash spent with vendors. Martin Gallagher can use the cost column when placing orders. If any plan figure changes, such as sales or markdowns, send me the new number and I will redo the totals. We recommend checking this again once the orders already placed arrive.

What it does

Works out how much money a boutique can still spend on new merchandise for one buying season, based on planned sales, planned markdowns, stock on hand, and orders already placed. Shows the math so the owner can check every line.

Use it when: Use when a boutique owner needs to work out how much they can spend on new inventory for the coming buying season, such as "open to buy," "how much can I buy for fall," "figure out my buying budget," or "what's left to spend on inventory."