i can remember it as clearly as yesterday. it was a black Lycra long sleeved mini dress covered in hundreds of tiny satin bows. it was by Betsy Johnson and way, way out of my price range. after all, i was a college student living on $500 a month (and that included rent!). how could i possibly afford a $120 dress? all i can say is: Layaway. i had to have the dress and paying for it in small chunks helped me attain it (slowly, but surely).
now i know Layaway has been out of vogue for some time – given the availability and influx of credit cards – but let’s consider our current economic situation. credit card companies are charging interest up the ya-hoo and it’s becoming more difficult to obtain – especially for those who have hit hard times. Layaway can help those who can’t or don’t want to use credit cards obtain the items they want – without paying interest. sounds pretty good, right?
i used to offer Layaway at ooma – and though very few clients used it – there were a few who regularly (and very happily) used this plan. these were my clients who were tight on budgets, but long on indie style. they wanted the one-of-a-kind and limited-edition piece – but couldn’t always afford it. so Layaway was the perfect answer to ensure it wasn’t snatched up my some other credit or cash wielding gal.
You can create you own policy – there are no set rules – but i like the following and i think it’s a policy many are familiar with:
- at least 30% down
- the remainder paid off within 60 days
(the thought is they’ll pay a third the second month and make a final payment after the 2nd). but you could do a quickie 30-day policy too, if you prefer.
the other nice thing about Layaway – is that it’s easy for independent boutiques to implement (and market) right away. this will give you yet another advantage over large retailers.
one tipsy: make sure you have their phone number and email on file in case they forget (as people sometimes do). they’ll appreciate the reminder.
6 Comments
Great idea! Time to implement it!
yes! and if you have a POS system – it’s likely a feature you already have!
I haven’t had this come up yet, but worry about customers getting cold feet or “changing their mind”. What happens in that instance when you’ve held back merchandise, but have partial payment?
This is a great question. i’ve had one instance where someone just neglected to pick up or pay off (i could not reach her). after the contract was up – i just put it back on the floor. it gets tricky with seasonal items – especially when you know the new season’s merch is arriving soon. i think it’s best to state your policy – i’d say no refunds for any payments made if they change their mind (consider it a deposit to have it on extended hold) – but you can offer to attempt to sell the item without them having to fulfill the entire obligation. any other thoughts?
I have been doing lay a way in my social occassion boutique for about 2 yrs. although I don’t post it everywhere in my store we let customers who are serious about an item , or those who ask about us “holding” merchandise know about this option. We require 50% down, and 30 days. No refunds. It has worked well, and people like the option!
i think this is great. i’ve noticed quite q few etsy boutiques offering layaway or “payment plans” for pricier items. way to make the recession a little easier, ladies! and how nice that we have the opportunity to purchase something a weeeee bit out of the comfort range without killing our budgets. bravo!