Open to Buy Calculator
Estimate how much budget a buyer has left in their current window and the optimal time to pitch. OTB is the money a buyer has available to spend on new inventory. When it is gone, it is gone until the next buying cycle. Pitch at the right time and you get a PO. Pitch at the wrong time and you get "maybe next season."
What is open-to-buy?
Open-to-buy (OTB) is the budget a retail buyer has available to purchase new inventory in a given period. It is calculated as their planned purchases minus what they have already committed. A buyer with $50,000 OTB and $35,000 already committed has $15,000 left. That is the budget you are competing for. This tool estimates where a buyer is in their OTB cycle based on what you know about their operation, helping you time your pitch when money is actually available.
You will not know the exact numbers. Estimate based on store size, average order patterns, and what you know about their operation. The output is directional, not precise.
Typical starting values by retailer type
| Retailer type | Annual category budget | Windows | Avg vendor order | Vendors |
|---|---|---|---|---|
| Independent store (1-3 doors) | $20,000 | 4 | $800 | 6 |
| Small chain (4-20 doors) | $60,000 | 4 | $2,000 | 10 |
| Mid chain (20-100 doors) | $180,000 | 4 | $5,000 | 15 |
| Large chain / department store | $500,000 | 4 | $15,000 | 25 |
| Museum / specialty store | $35,000 | 4 | $1,500 | 8 |
How the estimate works
- Per-window budget = annual category budget / buying windows.
- OTB remaining = per-window budget - spend so far - established vendors' orders (average order x vendor count; not deducted if you are already a vendor).
- If you leave spend so far at 0, spend is estimated from time elapsed: 60% of the window budget spread evenly across the window.
- Pitch when OTB covers your target order and less than 70% of the window has passed. Past 80%, act quickly or wait for the next window, and reach out 2 to 3 weeks before it opens.
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