How does your ABC open-to-buy compare with last fall's market season? What can vendors offer that will make you more likely to purchase in this economy?

How does your ABC open-to-buy compare with last fall's market season?

-- Kids Today, 9/1/2009 12:00:00 AM

Phil Wrzesinski, Toy House and Baby Too

My open-to-buy for this ABC show is slightly lower than it was last year, partly due to our focus on tighter inventories, partly because of decisions we made earlier in the year to bring in new product lines. The ABC Spring Conference allowed us to make some decisions earlier than normal.

What can a vendor offer to make me more likely to purchase? Let me start by saying what doesn't work. Small discounts like 5% or less are not incentives to buy now vs. later. Yes, I like them, but I won't blow up my open-to-buy and inventory levels over a 5% discount. It often isn't worth it when you consider the benefits of flexibility in cash flow.

Free freight is nice when the items are large and bulky or the profit margins are small. But on high-profit, small-dollar, easy-shipping items, it won't tip the scales too much to get me to buy what I don't need.

The one incentive that does get my attention is extended dating. Cash is king. Getting longer dating terms will certainly open my eyes to trying something new. Extended dating extends my open-to-buy, and decreases some of the risks for launching new lines. If I were a vendor showing at ABC, I certainly would consider offering longer dating terms to my credit-worthy customers.

Mark Lazar, Lazar's Furniture

Our customers want bargains, so to give them bargains, we need to get bargains from the manufacturers.

Maxine Guerrera, Rattles and Rhymes

We always go to market with an open-to-buy based on projected sales. This year will be no different. The way we buy will be based on several factors:

1. Sales-to-stock ratio by department;

2. Basic fill-in orders (written prior to show) based on weeks of supply selling;

3. Purchase items based on quality, cost, minimums and shipping. We shop the entire show before placing new orders.

We will not over-buy simply because a discount is offered. Profitability = Turn! Vendors with a quality product, sharp price and low minimums will have the advantage. Wood manufacturers that offer a huge discount for floor samples will gain the space on the floor. Freight and terms will be key in negotiations.

Dave Laub, Room to Grow

I think anytime the economy gets tough we must do everything we can to manage our cash flow to the greatest possible extent. What does that mean? It means finding that magical balance between reducing inventory levels and other costs and expenses as much as possible while at the same time not restricting sales and business opportunities because you do not have the inventory you need to make 90%–95% of the sales you need/want to make. It means getting rid of the excess and non-moving inventory.

However, it does not mean that you crawl into your shell and neglect your sales floor and your product mix. You still must look at your items and move out the old and bring in the new. That is what this show is all about. But you cannot go to excess and maybe that is the answer to your question. Know what you need to replace and know how much you have to spend. Come to the show prepared.

Do your homework. Don't wait until you get to the show to decide the parameters of what you can afford to spend on new things.

You ask: "What can vendors offer that will make you more likely to purchase?"

This is simple. Every year I go to shows and hear 3% discount on this and 5% discount on that. Being the dollars-and-cents person I am, I convert this to dollars. For example a 5% discount on a $100 purchase is $5. That doesn't buy me half a lunch. Don't waste my time with 5%. Save the paper. If you want to get my attention, start with 25%. If you want to influence my decision-making process, talk 40% to 50%. Then, tell me it will ship next month, not next year.

The economy has changed my outlook regarding the purchasing of furniture floor samples at this year's show. Substantial discount offers will be seriously considered. Token offers will not.

Doug Tritton, Stork Land

Our open-to-buy will be pretty much the same as in prior years. The difference is that we will be very discriminating in where we spend it. Just like our customers, we will be looking for products that are innovative, exciting and have value. Merchandise we find at this venue must set us apart from our competition. Manufacturers wanting their share will have to "WOW" us. Showing us product that we know will sell with good margins goes a long way in getting an order.