Golf shop open-to-buy: plan what you can still commit

01

Start with a period and a consistent valuation basis

Choose a month or another clearly defined selling period. A seasonal budget gives the overall direction, while a period-by-period review exposes deliveries that arrive too early, too late, or all at once. Use the same boundaries for sales, starting stock, ending stock, and expected receipts.

Keep retail value and merchandise cost separate. A wholesale purchasing budget cannot be subtracted directly from inventory valued at selling price. The two examples below use independently stated inputs on their own valuation basis; one is not a conversion of the other.

02

Calculate planned receipts, then remaining open-to-buy

On a retail basis, planned receipts equal planned sales plus planned markdowns plus desired ending inventory, minus beginning inventory. Then subtract merchandise already on order for delivery during that period to find the remaining uncommitted open-to-buy.

Markdowns account for a reduction in the retail value of stock that is not a sale at the original ticket price. Include them once and use an internally consistent inventory valuation. Treat this as a general retail planning calculation, rather than a description of MERCHED’s recommendation algorithm.

Further reading: Shopify’s retail open-to-buy formula

03

Check commitments using cost values

For a simple cost-basis plan, start with the expected cost of goods sold, add the desired ending inventory at cost, and subtract beginning inventory at cost. That gives planned receipts at cost. Subtract outstanding orders due in the same period, also at cost, to find the remaining uncommitted amount.

Cost of goods sold is the inventory cost of the merchandise expected to sell, not the sales revenue. A retail markdown changes the selling price; do not add retail markdown dollars to this cost calculation. Account separately for write-downs, shrinkage, returns, or transfers when they apply.

• Expected cost of goods sold: $15,000.
• Desired ending inventory at cost: $20,000; beginning inventory at cost: $22,000.
• Planned receipts at cost: $15,000 + $20,000 − $22,000 = $13,000.
• Outstanding orders due in the period at cost: $5,000; remaining uncommitted capacity: $8,000.

04

Give each category and brand a share of the same budget

Set category allowances inside the approved total, then assign brand commitments within each category. A vendor minimum is a constraint to evaluate, not additional money. If meeting it would exceed the category allowance, revise another commitment or seek approval before increasing the buy.

Keep a deliberate amount uncommitted if the shop needs flexibility for later evidence or deliveries. There is no universal reserve percentage: choose it around your selling window, ability to reorder, and existing obligations.

• Label the total, category allowances, and brand commitments with the same period and cost or retail basis.
• Include already-confirmed orders once, with their expected receipt dates.
• State whether freight, logo charges, and other costs are included or separately reserved.
• Reconcile committed amounts plus the uncommitted allowance to the approved total.

05

Make the number useful for a golf shop

Review the remaining amount by category and delivery window. Capacity in headwear does not necessarily justify another rainwear order. A member-guest delivery also needs to be separated from regular shop stock if the event purchase has its own funding and demand.

Keep an up-to-date commitment record outside the calculation’s assumptions: what has been ordered, what is due, and what has changed. As receipts arrive, avoid counting the same merchandise as both stock on hand and an outstanding order. Revisit the forecast if weather, rounds, or an event cancellation changes the outlook.

Carry the available amount into your next vendor buying brief.

06

Use a negative balance as a review signal

A negative result means the stock and commitments in the calculation exceed the planned need. First check the dates, valuation basis, duplicate commitments, and forecast. If the inputs are sound, review future orders with vendors before making more commitments; do not assume that cancellations or returns are available.

A positive result is capacity, not an instruction to spend every dollar. Check category demand, margin expectations, presentation needs, and the shop’s actual cash budget. Keep the reason for any decision to spend, defer, or reduce a buy visible to the team.

Ground the sales assumption in comparable historical performance.

From process to practice

Where MERCHED fits

MERCHED supports seasonal merchandise planning with uploaded performance history, shop inputs, budget guardrails, and category and brand recommendations. Uploaded current inventory can provide planning context; it is a snapshot, not a live stock feed. Use the recommendation as a data-backed starting point and reconcile your current commitments before approving the final plan. MERCHED does not provide live inventory management, live POS integration, or automated vendor ordering.

Explore our merchandise planning software, see How It Works, or read Built for Golf for the shop-specific inputs behind the recommendation.

Questions from the shop

Frequently asked questions