Breaking Down Goals & Creating an Open to Buy (Ep 93)Sep 27, 2022
Today we're talking about how to take your numerical sales goal and break it down so it makes sense for you and your boutique business.
I don't want you to just set goals - I want you to accomplish goals.
1. Determine your current average ticket.
Become really familiar with this number. At any point in time, I want you to know this number off the top of your head.
Your average ticket, or average transaction is the amount someone typically spends with you.
To determine your average ticket, take your overall sales number from a period of time and divide it by how many transactions you had during that same time period.
2. Add a percent of increase to your current average ticket.
Decide how much you want to grow.
Adding this percentage of increase to your current average ticket will give you your new average ticket sales goal.
3. Take a piece of paper and breakdown your next 6 months.
Write down the next 6 months and create three columns.
In the first column list each month's total goal.
In the second column, divide each month's total goal by your current average ticket.
In the third column, divide each month's total goal by your new average ticket sales goal.
Now you can see how many transactions you need for the old goal and how many you need for the new goal.
4. Decide how you're going to breakdown your transaction number into weekly goals.
Once you know your weekly transaction goal, you'll be able to see how many transactions you need to have each day.
5. Think about your Open To Buy (OTB).
Once you breakdown your average ticket sales goal, open to buy won't feel overwhelming.
Open to buy is a fancy way to talk about a buying budget. An OTB is essential to your business, especially if you have inventory.
Here are the three numbers involved in the open to buy formula:
1. Your sales goal! This is what we've just created.
2. Your ending inventory. This is how much inventory you always want to keep on hand. What inventory amount will keep your store full?
3. Your beginning inventory. This is how much inventory you're starting with today. This is why it's so important to enter your costs into your point of sales system.
Here's the Open To Buy Formula:
(monthly sales goal + ending inventory) - beginning inventory = your available OTB
In my mastermind coaching group, we work on goal setting for the year ahead. Interested in learning more about the Profitory Mastermind? Book a call with me and will discuss the best fit for you and your business!
Please always also feel free to get in touch by emailing me at [email protected].
Here's a glance at the episode:
[1:30] Ciara explains how to find your average ticket or average transaction.
[6:30] Ciara walks through Open To Buy.
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