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?
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 "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.
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.
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.
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.