Besides enabling great management features, a good POS system must enable you use of layaway. Today, we will talk about how layaway can work instead of discounting.
What is layaway?
Many retailers used this feature to attract customer instead of discount, and in many cases, it is indeed a great option. When a product is on a layaway, your customers can pay in smaller increments. These payments can go from 8-12 weeks and are a great way to get new customers and make them returning customers if you respect the layaway process.
How it can work better than discounting
First of all you wouldn’t use the revenue you usually give when discounting. Second of all, payments over few months are attractive to customers as they can get expensive products and are most likely to buy your products that are higher priced.
Additionally, if you have a good point of sale system, with layaway point of sale features included, it is much easier to manage these products and organize the layaway process. With a good POS system, they can be easily tracked and registered in your sales.
Customers satisfaction is also bigger because there isn’t any interest in layaway, like there is in their credit cards. So, in a way it is a two-way street, you benefit because you won’t lose money giving various discounts for your products, and customers can plan and spread their payments to fit their budget.
Layaway is a great option for businesses that sell products that cost more than $200 or $300, or simply products that require bigger portion of the family budgets. Instead of discounts, offering any type of product on layaway will increase the sales potential.
Another great option for using layaways instead of discounting is that it will spare you from many unpleasant situations that can create a bad image around your store. Often, retailers, are making desperate moves and giving false or extremely small discount just to get new customers. These attempts often are ending bad and many customers just start to have bad opinion about the business utilizing these types of bad discounts.
Maybe the best combination is using both discounting and layaway. Huge retailers like Wallmart and ToysRUs are already using layaways for a reason, they are seeing much more profit and revenue with the use of layaways.
Layaway point of sale
Although our POS software includes the layaway feature, not all POS systems have it. Usually, the layaway is included in the inventory settings of the POS systems. The layaway option is given after a product is purchased. When you manage the invoice of a certain product you’ve sold, there should be options that you can manage and one of them is layaway. When you select layaway, the product will be put in that category and you will be all set. POS System that includes layaway can give you great revenue and management option.