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The Return of Layaway

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Layaway Has Returned to Retail and It's Available Online, Too!

If you had asked me two years ago if I would have a layaway program in my store, I would have told you a definite "no." We had a layaway program in our store, and for an entire holiday shopping season, only had 6 customers take advantage of the program. Two of them never picked up their merchandise.

Layaway was a paperwork nightmare, and a big hassle to run, as well as bringing in very little income. Layaway did not pay for itself.

But in the current economic situation, with people out of work, or worrying about their jobs, it makes a lot of sense to reconsider having a layaway plan for customers in order to allow them to buy items that they might not otherwise, and to offer it as another form of customer service to let them know we understand. After all, we are all in the economic boat together.

So, my little gallery Lake Erie Artists Gallery now has a layaway plan.

What is Your Experience with Layaway?

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How Does Layaway Work?

In the traditional retail world, layaway usually works something like this. (Laws vary from state to state)

  1. The retail store has a layaway plan that requires a certain percentage payment of the total price as a down payment.

  2. Most stores have a processing fee of at least $5.00 because of the added paperwork and storage.

  3. The customer is required to pay at least a certain percentage on each payment date until paid in full.

  4. The store has a time limit as to when the item must be paid in full.

  5. The store may or may not retain a portion of the paid amount if the customer does not pay in full.


At Lake Erie Artists Gallery, here is how we are handling it.

We are allowing layaway on items $100 or more. (We have the leeway to allow it on lower priced items if the situation warrants it.)
Customers must put down 25% of the entire purchase price including tax. Then the merchandise must be paid in full within 60 days. We are charging $5.00 processing fee, but it is being waived for regular customers.

Which of These Items Would You Be Willing to Buy on Layaway?

Do you know that on some items Amazon will allow you to make payments? Not quite layaway, but almost the same.

1

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Dell Inspiron Mini IM12-2868 12.1-Inch Obsidian Black Netbook

Dell Inspiron Mini IM12-2868 12.1-Inch Obsidian Black Netbook

The Inspiron Mini 12 allows you to stay connected to your world virtually wherever you go. Inspiron Mini 12's small, incredibly light design lets you travel light while keeping up with your blog, video chat, instant messenger and email so that you never lose touch with your family and friends. The Dell Inspiron Mini 12 was developed from the ground up to be the perfect companion, keeping you connected while on-the-go. The Inspiron Mini 12 allows you to find, use and share your digital world...0 points

2

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Nikon D90 DX 12.3MP Digital SLR Camera with 18-105mm f/3.5-5.6G ED AF-S VR DX Nikkor Zoom Lens

Nikon D90 DX 12.3MP Digital SLR Camera with 18-105mm f/3.5-5.6G ED AF-S VR DX Nikkor Zoom Lens

Fusing 12.3-megapixel image quality inherited from the award-winning D300 with groundbreaking features, the D90s breathtaking, low-noise image quality is further advanced with EXPEED image processing. Split-second shutter response and continuous shooting at up to 4.5 frames-per-second provide the power to capture fast action and precise moments perfectly, while Nikons exclusive Scene Recognition System contributes to faster 11-area autofocus performance, finer white balance detection and more. T...0 points

3

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Contemporary Style Mocha Brown Fabric Sofa Couch Chair

Contemporary Style Mocha Brown Fabric Sofa Couch Chair

Contemporary Style Mocha Brown Fabric Sofa Couch Chair This exciting and stylish fabric sofa is designed on a wood base, and covered with mocha brown fabric. Enjoy easy cleaning and lasting durability with the high grade cotton fabric. This sofa is a perfect center piece to any contemporary or modern living room decor, and is designed to match other living room pieces or similar colors and shades. Matching loveseat is sold separately. Dimensions Measure: Sofa: 86" 35" 36"H0 points

4

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LG Panorama : LMX25981ST 24.7 cu. ft. French Door Refrigerator

LG Panorama : LMX25981ST 24.7 cu. ft. French Door Refrigerator

LG LMX25981ST 24.7 Cu. Ft. Capacity Stainless Steel French Door Refrigerator - LMX25981SS. Double Freezer Drawers. Tall Ice & Water Dispensing Center. Sophisticated Design, Inside & Out. 4 Compartment Crisper System. LoDecibel Quiet Operation. Contour Doors With Hidden Hinges. Premium LED Interior Light. Stainless Steel Finish0 points

5

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0.90 Ct Princess Cut IJ I1 Diamond Stud Earrings 14 Karat White Gold !! Jewerly At Manufacturer's Price !!

0.90 Ct Princess Cut IJ I1 Diamond Stud Earrings 14 Karat White Gold !! Jewerly At Manufacturer's Price !!

This perfectly set, Princess cut diamonds of quality IJ - I1 in 14 Karat Solid White Gold makes this Stud Diamond Earrings an excellent piece of elegance.

Surprise her with these beautifully crafted Stud Diamond Earrings. The sparkle in her eyes will only be out shined by the sparkle in her ears. Don't miss out on this wonderful opportunity...Buy now! The estimated retail value of the same is $6705.

This real diamond jewelry can be yours at an unbelievable price!!

These are real natural diamo...0 points

6

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Harley-Davidson® Men's Classic Cruiser Leather Jacket. 98118-08VM

Harley-Davidson® Men's Classic Cruiser Leather Jacket. 98118-08VM

AUTHENTIC HARLEY-DAVIDSON FROM ST. PAUL HARLEY-DAVIDSON! You can trust St. Paul Harley-Davidson, winner of Harley-Davidson's Gold Bar & Shield, the highest form of recognition offered by Harley-Davidson Motor Company. We excel in customer service, facilities, operations, and performance. This extends to you as an Amazon customer, as well.0 points

7

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Garnet Wenger Swiss Army Lucerne Lite 3-Piece Expandable Luggage Set

Garnet Wenger Swiss Army Lucerne Lite 3-Piece Expandable Luggage Set

Telescoping locking handle makes pushing or pulling the upright easy and effortless, Comfort grip handle makes lifting easier, Corner protrction prevents accidental damage during transit, Bottom handle grip, Add a bag system allows for easy attachment to other bags, Front pockets provide easy access to important travel documents and accessories, Interior shoe pockets, Adjustable compression straps, Zippered interior accessory pocket, Removable wetpack.0 points

8

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Hayward SP4015X20 NorthStar Max Rate Pump 2-Horse Power

Hayward SP4015X20 NorthStar Max Rate Pump 2-Horse Power

Exclusive CPVC Union Connections make installation and servicing fast and easy. Heat-resistant, highly durable ceramic carbon seal ensures reliable, long-lasting performance. One-piece housing molded of nylon for extra durability and longer life. Motor is engineered to provide a minimum of 35,000 hours or 10 years of extended life. Quad-Lock provides quick access to drive train and pump ports. No tools or clamps required. High profile base elevates pump for heavy rain environments.0 points

9

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Grand Slam Playstation

Grand Slam Playstation

Lumber not included. Approved for residential use only. Includes 3 design options Bronze, Silver, and Gold; additional accessories and lumber are required to complete each option. 16 to 22-hour estimated assembly time. 350-pound weight rating (using kit contents only); designed for children ages 2 and up. Contains commercial-grade weather-resistant accessories and hardware common to all 3 design options including: 2 swings, 1 gym ring pair, and 2 monkey ring sets, all with chains and fasteners; 3...0 points

10

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Enerpac Hydraulic Power Workholding Low Profile Swing Clamp No. ASC-30, Clamp force = 1,375 lbs.

Enerpac Hydraulic Power Workholding Low Profile Swing Clamp No. ASC-30, Clamp force = 1,375 lbs.

These low profile swing clamps are designed to swing 97degrees to position the arm over the work piece. A vertical plunger then exerts an upward thrust on the back end of the swing arm providing powerful downward pressure to clamp the work piece. Arm can swing right or left. Operating pressure is 1,200 to 2,500 psi.0 points

The purpose of life is not to be happy - but to matter, to be productive, to be useful, to have it make some difference that you have lived at all. ~Leo Rosten

or

Unless someone like you cares a whole awful lot, nothing is going to get better. It's not. ~Dr. Seuss

Using Layaway to Pay for Things Online

Layaway is still mostly an in-person process, but some companies are starting to accept layaway online. A new company, eLayaway has come online to offer their services to any merchant who does not want to collect the layaway payments themselves. If a customer wants to purchase on layaway, the payments are handled by eLayaway, then the merchandise is shipped directly from the company selling the products.

Several large retailers have signed on already, including Best Buy and Sears. It will be interesting to see how this program works for these retailers, and how successful eLayaway turns out to be as an alternative to credit cards.
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  • Reply
    Brookelorren Nov 8, 2009 @ 4:03 pm | delete
    I guess I think more along the lines of Ramkitten... if I can't afford to buy an item, I have to save up for it. I suppose some kids have to have some items that sell out. I don't think that I will ever use it. This year Christmas is tight, so I'm making gifts.
  • Reply
    naturegirl7 Oct 22, 2009 @ 8:01 pm | delete
    I had heard that layaway was back & we certainly need it in this economy. I hope it enables people who are short on cash to give their kids a happy holiday.
  • Reply
    QueSea Oct 21, 2009 @ 6:45 pm | delete
    Great topic! It looks like the season for Layaways, an idea from my childhood back in fashion again!
  • Reply
    BevsPaper Oct 18, 2009 @ 4:43 pm | delete
    Great article about the Layaway system. We offer this in our Antique Mall and it works great for many of our customers.
  • Reply
    Ramkitten Oct 18, 2009 @ 11:08 am | delete
    I've never purchased anything on layaway ... and, for a long time, I honestly didn't really understand why it was necessary. I just figured, why not put money aside as often as possible (in an envelope perhaps) until you'd have enough to purchase the item? But then it hit me that, by the time there was enough money, maybe the item would no longer be available or would be sold out. So I can see a customer doing it for that reason.
  • Reply
    Joan4 Oct 17, 2009 @ 7:46 pm | delete
    Layaway is a good solution during this tight economy. I remember teaching my teen daughter to do that, and how to handle it with her little part time job. I think it was a serious lesson in learning to deal in cash!
Show All

Current Layaway News

eLayaway Acquisition Sets Stage for Continued Growth and Expansion
In late 2011, the two companies joined forces to bring eLayaway's automated layaway payment solution to CSP's Exchange Shopping Program (CSPEX) in 2012. The CSPEX network is the leading marketplace solution for member-based organizations.
Walmart wins with a back-to-basics approach
BIG BOOST FROM LAYAWAYS Analysts, on average, expect Walmart US sales rose 1.8 percent in the fourth quarter ended in January, according to Thomson Reuters I/B/E/S. That would be their best performance in the last 10 quarters, which included nine ...
Villa del Palmar at The Islands of Loreto in Baja, Mexico Introduces Layaway ...
With the Layaway Vacation Plan, travelers go online to book their vacations, working with the resort's Activities Concierge to customize their package to fit their budgets. The resort offers a wide range of land and water activities for adults and ...
Police log, Feb. 15
Police said the man walked to the layaway area of the store and broke the machine that is used to pick up items that have been ordered from the store or online. After breaking the machine, police said, the man left the store and fled the area in a ...
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lakeerieartists



I am an artist, writer, and owner of Lake Erie Artists Gallery at Shaker Square in Cleveland, Ohio.

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