Next, you need a few simple numbers that tell you whether a buy is working while you still have time to adjust. Without targets, it is easy to fall back on taste, vendor hype, or a single good day on the sales floor.
Start with four targets you can track weekly, even in a spreadsheet. Keep them simple so you actually use them:
Planned sell-through: what percentage you want sold by a certain week (for example, by week 4)
Markdown threshold: the point where you would rather mark down than tie up cash (for example, if sell-through is under your target by a set margin)
Weeks of cover: how many weeks of stock you want on hand at your current weekly sales pace
Average unit retail (AUR): your average selling price per unit so you can sanity-check whether the assortment matches your customer’s budget
Here is the tradeoff: tight targets help you react fast, but they can make you under-buy new styles if you set them too aggressively. Loose targets feel safer, but they hide slow movers until they are old inventory.
If you do one thing, set a sell-through goal and a markdown threshold first. Those two numbers force clear decisions: keep full price, reorder, test again, or move it out.
So once targets are set, use open-to-buy (OTB) to choose what to reorder, what to test, and what to skip. OTB is simply the amount of money you can still spend in a period after you account for inventory on hand and orders already placed.
A practical way to apply it in a weekly buying meeting:
List your planned receipts for the next 4 to 8 weeks (what you expect to bring in)
Subtract what is already on order and what is sitting in back stock
With what is left, split your spend into three buckets:
Reorder winners that are on pace to hit sell-through and are under your weeks-of-cover target
Test a small quantity of new items (for example, 2 to 6 units per style) to learn quickly
Skip anything that would push you over weeks of cover or that would require instant markdowns to move
Here is the catch: buyers often treat OTB like permission to fill space. The fix is to treat OTB like a constraint that protects your cash.
If you are short on time, skip the extra categories and run OTB only on your top 10 SKUs and top 3 categories. You will still catch most of the cash drains, and you will build the habit before you expand it.