Tower Systems has helped many retailers get into offering Lay-By services when installing our Point of Sale software. Over many years we have developed extensive experience in Lay-Bys and through this we have refined suggestions on how to make the most of the opportunity.
Here is a summary of more extensive Lay-By advice we provide to retailers, based on our years of experience.
- WHAT TO LAY-BY. Set a minimum item and or purchase value. We’d suggest $80.00 in a small retail business.
- DATA REQUIRED. Always ensure you are satisfied you know who your customer is. Require proof of ID from a driver’s licence or similar legal ID document.
- 20% of the total GST inclusive purchase price.
- Only Lay-by to people 18 and over.
- Lay-bys should run for between eight and twelve weeks. You could run for longer pre Christmas to get early sales.
- PAYMENT CYCLE. Require payments to be made weekly or fortnightly.
- PAYMENT METHOD. Accept any payment form you choose.
- Do not allow someone to take home a single item from a group of items on Lay-by together in one purchase. It’s all or nothing.
- Have a policy you are comfortable with. We suggest a 20% cancellation fee applies. Note that you could equally choose to have no cancellation given that Lay-by product may not be able to easily re-sold.
- Decide what you would consider a breach. This has to be something you stand by. We suggest two missed payments without reasonable excuse or rectification. On breach, cancel and charge the cancellation fee.
- We suggest a no-exchange policy.
- When a customer Lay-bys, print two dockets – one for them to take immediately and one to be placed with the goods. Have your customer sign both copies, accepting your terms and conditions.
- Set aside a clean and secure storage location for Lay-bys in your business where locations are coded for easy finding. Place Lay-by goods into a single clear plastic bag per transaction for clean and safekeeping. Staple to this a copy of the Lay-by docket. Let your customers see you do this so there is no doubt when it comes time to collect the products.
- Have one person responsible for Lay-bys to ensure product care, track payments and contact customers.
- TERMS AND CONDITIONS. Enter these into your software so they are included on every Lay-by docket. Points 2 through 11 above are a good example of what to include in your terms and conditions.
- COMPLETE PAPERWORK. To not over complicate things, rely on your software’s Lay-by docket as your complete paperwork / contract. Get that right and Lay-by management will be easier.
We are grateful to our retail partners who have worked with us on developing this experience and advice. Their help has enabled us to provide this help.