Around the holidays, getting the money you need can be tough. If you’ve been saving all year or you have had to access online payday loans in a pinch, that’s fine; better than accessing costly credit cards.
Layaway programs are very popular for people that prefer put-on-hold-now/pay-later shopping option to stretch out their budget. Here are five reasons why layaway programs have made a comeback.
Instant: For customers, the decision is instant. If they want to put an item on layaway, they can. They have to submit a small down payment, make regular payments for the item(s) they wish to purchase, and once it’s paid in full, the item(s) is theirs.
Decide: Even for customers who are more judicious, layaway programs are a better avenue for shopping. If there are any items that are “sold out” but customers miss the payment deadlines for those items, retailers can decide which and how many items to reintroduce to the sales floor.
Increase Customers: Layaway actually increases hysteria over certain items. If a store can say to its customers that they are out of an item for the Holidays in the early fall, it will entice other customers to jump on that bandwagon and want the same item.
Layaway also increases customer comfort because they know they have time to evaluate their decision and purchase what they want later. This level of comfort and the ease can help increase sales and, as strange as it may sound, create a stronger consumer-retailer relationship.
Reduce Returns: Customers who may return items can get the store’s calendar year off to a really poor start. If they have the option of layaway and can decide what they really want to do about the purchase later, it makes more sense for the customer and fewer returns for the store.
Locked In: Layaway also locks customers in, in some cases. Because stores take a deposit for the items, if customers do not act then the store gets to keep both the deposit and inventory. This is where the ‘loan’ aspect becomes dangerous for customers because they could end up losing money and not get what they wanted to buy.