The Return of Layaway

Layaway sales are making a comeback after years where widespread credit card and gift card use caused many retailers to discontinue the practice. With the recession retailers are looking for ways to increase sales to customers who do not have credit, do not want to max out their credit, or just do not want to pay interest on credit card purchases. Layaway plans have benefits for both the retailer and the consumer.

The retailer benefits from increased sales to consumers who can not afford to pay for larger purchases all at once and the risk of loss is minimal since the merchandise does not leave the store until the purchase is paid for in full. It also saves the retailer from paying fees to payment processors.

The customer benefits from gaining the ability to make large purchase without using credit cards or loans. He or she also benefits from paying less in layaway fees that are less than interest on the loan or credit card.

A good layaway system needs to do a lot of things to make managing layaway sales practical.

• Process the layaway from entering the new layaway to taking payments and the final pickup.
• Track items on layaway
• Track layaways by salesperson
• Report layaway history
• Report delinquent layaway payments
• Reprint payment schedules for customers

Your sales clerks need to be able to enter the layaway easily and have the minimum down payment show as determined by your policy whether it be a dollar amount, percentage of the layaway, greater or lesser of the two. It should also calculate the payment schedule and print that schedule on the invoice. You should be able to take payments on the layaway at any store, pickup up a layaway that was entered at the back desk at the POS register up front. Canceling a Layaway should also be just as easy. You need to be able to control who can do the various layaway transactions.
When you put an item on layaway the software needs to show it as on layaway and you need to have reports that show you what and how much is on layaway. You need to be able to easily view payment history on a layaway, and see which customers are late on their payments.

Cougar Mountain Software‘s DENALI Layaway was designed with these features in mind. It enables you to quickly and easily set up a layaway contract within the constraints of store policy, take the payments at any register in any store and pick up the layaway when final payment is received. It also gives you the reports you need to manage the layaway accounts and track inventory that is on layaway.