Layaway plans have made a resurgence after a hiatus in the mid-2000s and have been spearheaded by big-box retailers like Walmart, Toys R Us, and Kmart. A whopping 30% of consumers start their holiday shopping as early as October.
How can you take advantage of attracting these consumers to your store? Paladin Point of Sale makes it easy to create a layaway plan and accept deposits for each customer, as well as keeping track of all quantities of items being reserved.
Should you add fees and initial deposits to layaway items?
Large stores such as Walmart and Toys R Us have completely done away with special layaway fees thanks to an increase in competition for layaway shoppers. With lower or no fees, more shoppers are inclined to purchase a more expensive item that they otherwise would have left on the shelf.
Big box retailers usually have an initial deposit of anywhere from 10% to a set dollar amount and a minimum amount of purchase required for their layaway programs.
Deposits made into the Paladin system will be held in the accounts receivable system. Deposits will be shown as cash received and each subsequent payment will be stored in the system. Once the balance owed is paid in full, all payments made to the account will be applied to the invoice.
How do you handle a layaway purchase in Paladin Point of Sale?
With Paladin, multiple types of retail businesses can take advantage of the inventory on-hold feature that is accessible from the invoice system. Using this feature, any item on layaway will show as an on-hold quantity and is easily viewable so you can keep track of which items are being reserved and for whom. All stock on hand is reduced to only the amount of actual product that is available to make it easier to keep your inventory ready for the holiday season.
You can’t keep a good layaway plan down
In an ever-evolving retail economy, the ability to compete with large big-box stores is a necessity for small businesses. Why not offer a convenient plan to rival those of your competitors? Encourage your shoppers to get a head start on their holiday shopping with your Paladin layaway program.
For more information, call Paladin at 1-800-725-2346 today.
Written by Shayla Eaton.