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  1. #1
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    Default Would lay-away work in the DR?

    We were thinking of offering Christmas Layaway for some of our items. Would this be something that would attract buyers?

    How would lay-away be implemented for Dominicans?

    Thanks.

  2. #2
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    Quote Originally Posted by vmhatup View Post
    We were thinking of offering Christmas Layaway for some of our items. Would this be something that would attract buyers?

    How would lay-away be implemented for Dominicans?

    Thanks.
    Actually I think it would. I remember years ago that sales people would go house to house with this catalog (a la sears) and sell stuff to people in a sort of layaway form, whereas people would pay a certain amount of money until the item would be all paid up at which point they would get their item.

  3. #3
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    The "Dominican way" is to charge the price of the item, the real price, not the sales price, and the allow the buyer to pay off the item on a monthly basis. Every payment after the down payment is pure profit in the till.

    If you charged a major percentage of your cost up front, you won't be left with a lot of semi-paid-for items later on....

    Just so's you know.

    Cordially,

    HB
    Moderator DR1.com

  4. #4
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    Layaway was invented in the US during the Great Depression because very few people had any money or reliable jobs for decent cashflow. That sounds very much like the Dominican Republic so you might have a very good idea. But like Hillbilly suggested, get your cost of goods out of the first payment so everything that follows is profit. That way even if you have to resell the item (due to non-payment) you have already paid for it from your inventory.

  5. #5
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    Thanks for your replies.

    Quote Originally Posted by Hillbilly View Post
    The "Dominican way" is to charge the price of the item, the real price, not the sales price, and the allow the buyer to pay off the item on a monthly basis. Every payment after the down payment is pure profit in the till.
    Let's say the item costs me (the seller) $30, and I sell it for $70. Are you saying I should charge the buyer $30 as a down-payment and then have the buyer make monthly payments of the remaining $40?

    The reason I let go of that idea is that I have no way of following up on the buyer after the down payment is made. Let's say he doesn't pay the $10 due in December. What am I going to do then?

    That's one of the reasons I'm inclined in doing layaway.

  6. #6
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    Quote Originally Posted by Castellamonte View Post
    Layaway was invented in the US during the Great Depression because very few people had any money or reliable jobs for decent cashflow. That sounds very much like the Dominican Republic so you might have a very good idea. But like Hillbilly suggested, get your cost of goods out of the first payment so everything that follows is profit. That way even if you have to resell the item (due to non-payment) you have already paid for it from your inventory.
    If I'm not mistaken, Hillbilly is suggesting that I deliver the item after the down payment. After the down-payment, the buyer would own the item.

  7. #7
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    Quote Originally Posted by vmhatup View Post
    Thanks for your replies.


    Let's say the item costs me (the seller) $30, and I sell it for $70. Are you saying I should charge the buyer $30 as a down-payment and then have the buyer make monthly payments of the remaining $40?

    The reason I let go of that idea is that I have no way of following up on the buyer after the down payment is made. Let's say he doesn't pay the $10 due in December. What am I going to do then?

    That's one of the reasons I'm inclined in doing layaway.
    I read: You buy (wholesale) the item for $30. You sell the item (retail) for $70 with a down payment of $30 and maybe $5 per week/month in payments. Your cost is paid. Every payment of $5 which you receive is profit on that item (overhead notwithstanding). Upon receipt of the final payment (#9) the buyer recieves their merchandise.

    I would add that if three consecutive payments are missed, the item returns to inventory and the buyer forfeits the merchandise.

  8. #8
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    ~I think what HB was stating is that you collect your cost upfront with the deposit FIRST....then you "Lay the merchandise AWAY-in your store or storage"....the client comes in Weekly or Monthly and makes payments against the balance due until the product is paid in Full....

    Full payment received= release of Product to client....

    I would also charge a fee for the Layaway plan as they do in the US....

  9. #9
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    Quote Originally Posted by vmhatup View Post
    If I'm not mistaken, Hillbilly is suggesting that I deliver the item after the down payment. After the down-payment, the buyer would own the item.
    Oh, I hope you are mistaken because you shouldn't deliver until all funds have been paid. Otherwise you'll never see the rest of the money.

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  11. #10
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    Yeah... I know. It seemed to me that HB was suggesting something else. I also don't understand what he means by charging "the price of the item, the real price, not the sales price, and the allow the buyer to pay off the item on a monthly basis". I'm not sure if 'real price' is the price I pay as a seller.

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