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With over 25 years of frontline experience Tom Shay is America's leading small business management expert. He's a "Must Have" for your next event.

"Open to Buy" explanation and calculator from Profits Plus

During many of Tom Shay's presentations, the question about an "Open to Buy" is frequently asked. Because this is a topic unto itself, we have added two areas of information to assist you in understanding, creating, and utilizing an "Open to Buy". The first is an article about an Open to Buy. You can see and print this article by clicking on this Open to Buy.

The second item we have added is an Open to Buy template which has been created using Microsoft Excel. To fully utilize this FREE tool, you will need a spread sheet program (Excel, Lotus, or other similar program). The template you are going to download, does have example numbers to indicate how it works. Be sure to remove the example numbers before using the template. Click template to download the file. While we have created a unique business tool that we believe to be accurate, you should also utilize a calculator to verify the correctness of this information.

Click here, Open to buy, to see the PowerPoint, presentation notes, and free audio track for this important topic.

To complete the form, read this information and follow the instructions.

1. The template has been write protected so that the formulas are not destroyed.

2. The fourth column has an P or C in it. This letter refers to that particular row of information. The P indicates you should enter information and the C indicates that row is protected. The first column has an P/C which means you need to enter the number for the first month, but not for the following months.

3. The first information you should enter is the inventory on hand on the first day of business of the first month of your open to buy chart.

4. The next row of information you should complete is your anticipated sales for each of the months. This row is highlighted with yellow.

5. Your anticipated gross margin for each of the months should then be entered. This row is also highlighted with yellow.

6. The next row of information you will complete will be the "Desired Inventory - End of Month". Again you do this for each of the months.

7. A second reminder that you need to remove the amount of dollars listed as purchase orders. Each purchase order has a space where you can input your purchase order number and who the purchase order is written to. Then enter the amount of the purchase order in the appropriate row.

8. As you change your gross margin, and write purchase orders, you will find the bottom row will change to reflect your open to buy. And as you change the anticipated sales to actual sales, you will find the open to buy to change to reflect the actual sales.

Enjoy this free tool to assist you in operating your business, and get your profits plus!

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©1998-2026 Profits Plus Solutions, Inc.
Tom Shay
PO Box 128
Dardanelle, AR 72834
(727)823-7205

MARCH 2026
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Small Business

AdvisoriES


Every time I see the logo for Target stores, I think about small businesses and the need to know which people to target as their customers. Of course, of most importance is the person who has spent any money with your business.

 

I ask businesses if they know how much the average person spends with their business. Most offer a quick response with a dollar amount. That answer is incorrect as they are telling me what the average existing customer is spending. The average person in any community spends no money with that small business.

 

Looking for new customers without any plan of how to do so is just spending money. That is why every small business needs to know how to find and use information. Find ideas in the March Small Business Advisory.

Small Business

NewS

Top Story

Employee retention; is it important? Or is it easier to lose an employee and wait for the next applicant to walk in the door? The Small Business News for March shares some statistics of the expense you incur when you make the change instead of working to retain a current employee.

Article of the Month

It is baseball season and we use the sport as an explanation of the cost of growing your business. In Boston's Fenway Park, left field has a wall that is know as the green monster.

 

And that is what growing your business is - a monster! You can't successfully grow your business without a plan and knowing you will have the cash on hand to pay for the growth.


Book of the Month

Are you selling something or persuading the customer? With your employees are you repeatedly telling that employee or are you persuading them to excel?

 

Influence: The Psychology of Persuasion by Robert Ciaidini is our suggested book for March 2026. Most definitely an appropriate read.

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Every time I see the logo for Target stores, I think about small businesses and the need to know which people to target as their customers. Of course, of most importance is the person who has spent any money with your business.

 

I ask businesses if they know how much the average person spends with their business. Most offer a quick response with a dollar amount. That answer is incorrect as they are telling me what the average existing customer is spending. The average person in any community spends no money with that small business.

 

Looking for new customers without any plan of how to do so is just spending money. That is why every small business needs to know how to find and use information. Find ideas in the March Small Business Advisory.

Small Business

News

 

Top Story

Employee retention; is it important? Or is it easier to lose an employee and wait for the next applicant to walk in the door? The Small Business News for March shares some statistics of the expense you incur when you make the change instead of working to retain a current employee.


Article of the Month

It is baseball season and we use the sport as an explanation of the cost of growing your business. In Boston's Fenway Park, left field has a wall that is know as the green monster.

 

And that is what growing your business is - a monster! You can't successfully grow your business without a plan and knowing you will have the cash on hand to pay for the growth.


Book of the Month

Are you selling something or persuading the customer? With your employees are you repeatedly telling that employee or are you persuading them to excel?

 

Influence: The Psychology of Persuasion by Robert Ciaidini is our suggested book for March 2026. Most definitely an appropriate read.

 

All this plus the Internet Tool for Your Business and a staff incentive idea for your business.