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Why Range Reviews Rarely Change the Buy

A range meeting changes the buy only when the pictures stay connected to quantities and money. Merchmix Core connects range options, budget assumptions and MFP/WSSI so the team can compare a commercial revision before approval. Record the quantities that changed and what they leave available to spend.

A young fashion buyer using cost sheets and a calculator during a range review.
Editorial illustration of the retail planning decision.

THE MERCHMIX DECISION / Core

The pictures changed. Did the quantities?

Make the range review produce a scoped quantity and cost decision.

Worked retail planning example. Quantities and financial amounts are independent assumptions; money is shown in US dollars. Proposals remain subject to review.

merchmix.Core / planning review
Establish the basisCurrent assumptions

The pictures changed. Did the quantities?

Coats80proposed units

$4,000 at cost

Knitwear120proposed units

$3,000 at cost

Trousers100proposed units

$3,000 at cost

Initial proposal / not approved
Stock cost against envelope$10,000

$1,000 above the $9,000 envelope.

Range stateUnitsStock cost
Original proposal300$10,000
Reviewed proposal260$8,300
Core / option and budget reviewConnect the board to the buy

The revised proposal is sixty coats, 140 knits and sixty trousers. No supplier order is raised or cancelled in this comparison.

Start with the proposed range

The initial 300 units cost $10,000 against a $9,000 envelope.

THE KEY IDEA

Make the range review produce a scoped quantity and cost decision.

An attractive board is not yet an authorised buy

A review can remove a picture, add a colour and leave the purchase quantities unchanged in another file. Everyone believes a decision happened, but the financial plan still contains the old commitment. The problem is the missing commercial consequence, not the quality of the images.

Core connects assortment and option planning with the budget discussion. Bring the proposed units, cost and remaining allowance into the room alongside the product role. A decision to favour knitwear should be visible as a revised quantity and value, not only a more prominent position on the board.

Planning and product referencesMerchmix Core: documented product scope

Give the review a financial boundary

Assume a $9,000 buying envelope. The starting proposal contains eighty coats at $50, 120 knits at $25 and a hundred trousers at $30. It totals 300 units and $10,000 at cost, which is $1,000 above the stated boundary.

That opening proposal is not an accepted order. Keep its status clear so a revised plan is not mistaken for a cancellation of goods already committed. If any quantities are already ordered, their amendment needs its own operational decision. The worked review concerns an uncommitted range proposal.

Make the new quantities explain the decision

The reviewed proposal becomes sixty coats, 140 knits and sixty trousers. Cost is $3,000 plus $3,500 plus $1,800: $8,300 for 260 units, leaving $700 in the envelope. The mix changes materially instead of scaling every line by the same percentage.

Assume comparable historical full-price selling shares of 40% for coats, 75% for knits and 55% for trousers. Those worked indicators help frame the discussion but do not prove future demand. Inspect availability, price and period before using a historical percentage to justify the larger knit quantity.

THE FIGURES BEHIND THE DECISION

The pictures changed. Did the quantities?; Make the range review produce a scoped quantity and cost decision.
OptionOriginal unitsReviewed unitsReviewed cost
Coats8060$3,000
Knitwear120140$3,500
Trousers10060$1,800
Total300260$8,300

Reviewed cost = 60 × $50 + 140 × $25 + 60 × $30 = $8,300. Remaining envelope = $9,000 − $8,300 = $700.

Compare margin assumptions without rewarding an overspend

At assumed selling prices of $90, $55 and $65, selling every revised unit at those prices would produce $17,000 revenue and $8,700 product gross profit before other expenses. Those figures depend on the quantities selling at the stated prices. They are not a forecast guarantee.

A higher theoretical gross profit on the original $10,000 proposal would not make it fit the $9,000 envelope. Core’s budget and scenario context lets the buyer compare affordability and commercial return together. Keep unit demand, price and cost assumptions visible rather than promote one attractive total.

THE PLANNING REFERENCERead the open-to-buy guide

Ask what the retained allowance is for

The $700 left after review can remain uncommitted while the team tests early trading, or support another approved option. It is not permission for every buyer to add a small extra line. The envelope and ownership remain part of the decision.

Preserving some allowance may be valuable if the season needs a response later, but this example does not calculate that value. Record the intended use and next review point. An available balance should be an explicit choice, not money that disappeared when somebody rounded the range plan.

Carry the revised range into the weekly plan

Core supports the connection between budgets, MFP/WSSI and range quantities. Compare the accepted range with the weekly sales and intake assumptions before sign-off. The new mix may need a different arrival pattern even though total cost is lower.

Retain the earlier proposal for hindsight and identify the version under review. Approval of a financial scenario is not proof that a supplier order has been raised or changed. The commercial hand-off should specify the retained options, sizes, quantities and dates, with operational action handled through the supported process.

SignalMerchmix workspaceDecision to review
The board changesCore / option planningRecord the revised quantities behind each product choice.
The proposal exceeds budgetCore / budgetsCompare a scoped revision with the approved envelope.
The mix is acceptedCore / MFP/WSSICheck weekly intake, sizes and the remaining allowance.

End the meeting with an inspectable change

For the example, the result is sixty coats, 140 knits and sixty trousers, costing $8,300 with $700 uncommitted. The reviewer can trace how the quantities reflect the intended mix and where the calculation fits the envelope. The images now have a financial consequence.

A useful range review does not need to reject more products to look decisive. It needs to change a justified part of the buy, retain the basis and make ownership clear. Merchmix Core keeps the product choice and the numbers close enough for that decision to be reviewed.

BEFORE THE NEXT DECISION

  • Buyer

    Explain the retained option roles and quantities.

  • Planner

    Reconcile the revised cost and dated intake.

  • Budget owner

    Approve the version and intended use of the allowance.

Common questions

Are any orders cancelled in this example?

No. The comparison concerns an uncommitted range proposal, not a completed supplier amendment.

Why is the original proposal unsuitable?

Its $10,000 stock cost exceeds the stated $9,000 envelope by $1,000.

What does the revised mix cost?

Sixty coats, 140 knits and sixty trousers total $8,300 at the stated unit costs.

Is $8,700 a guaranteed profit?

No. It assumes all revised units sell at the stated prices and excludes other expenses.

What happens to the $700 allowance?

It remains uncommitted until its owner approves another use or a later review changes the plan.

core

Record the revised quantities behind each product choice.

Explore

Continue reading: Option breadth and local size depth

Read the retail planning glossary

FROM THE ARTICLE TO YOUR OWN RETAIL PLAN

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