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End of the Road for Layaways?
March 18, 2007
Does the type of jewelry you sell determine if you should offer layaway or not? Let’s say you sell mostly higher-end goods, some branded, mixed with non-branded but still comparable quality to your other goods…do you then not offer layaway? Or, because you sell to the middle-low income families, you offer layaway? If you offer layaway, does that mean most off your customer’s are of lower incomes? Do you only offer layaway on non-branded goods? Does, the word layaway even come up in your store?
Wal-Mart Stores ended layaway service last year because of falling demand and rising costs. Many of their customers were extremely upset and posted hundreds of forums such as one titled, “No More Wal-Mart Layaways.” Kim, a resident of Houston, TX, states, “This will be the dumbest thing that Wal-Mart could ever do. Because that is at least 50% of their sales, not only through the holidays but also throughout the year. I as well as others will find other places to shop that offer layaways. This is how the middle to lower class families buy for their children. It’s a HUGE mistake for Wal-Mart to no longer have Layaways.”
Another one of their outraged customers posted, “Layaway was just for the convenience of not having to pay all at once.”
Do higher income families buying your jewelry really believe in the pay now take home later theory?
I’m wondering, how many jewelry stores still do layaway? Personally, I think layaways are a pain, but many of my friends who sell high-end brands still offer layaway…the terms are just a little more strict. Customers have to put down at least 25% of the total purchase price of the item and the amount of time allowed for the layaway is 60days.
So, tell me…is layaway still prevalent amongst independent jewelry storeowners? If so, does the type of merchandise you sell determine if you were to have or not have a layaway program?
If you do have layaway or want to implement a layaway program, take a look at this article (scroll down to the bottom).
Posted by Shanu Singh Guliani on March 18, 2007 | Comments (1)
