Lay-By is vital to small business retailers, especially gift shops, jewellers, garden centres, toy shops and homewares shops. Tower systems offers structure support for managing Lay-Bys in its POS software. We help small business retailers meet their regulatory obligations, serving the needs of customers and their businesses with a best practice approach.
We offer written advice, video training, one on one training and more to help small business retailers run professional Lay-By services.
Here is a glimpse into some of the professional Lay-By advice provided to our small business retailer community:
Meeting regulatory requirements is vital. For example, if someone cancels a LayBy you must refund their payments less a termination fee. You can set this fee and advise as part of your terms and conditions.
Our advice guides you through key rules and steps to success with Lay-bys.
- WHAT TO LAY-BY. Set a minimum item and or purchase value. We’d suggest $80.00.
- 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.
- DEPOSIT. 20% of the total GST inclusive purchase price.
- AGE. Only Lay-by to people 18 and over.
- DURATION. Lay-bys should run for between eight and twelve weeks. You could run for longer pre Christmas to get early toy 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 LayBy termination policy you are comfortable with. We suggest a 20% termination fee. Alternatively, set a dollar amount to reflect the work. Also, consider setting the LayBy to auto terminate if it extends beyond a period of time you nominate. 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.
These rules and steps may feel complex. They are necessary for the small number of times something goes wrong and you need to rely on them to help you deal with a situation.