At first glance, layaway might remind you of credit cards. However, layaway is a different option for customers who want to pay for items on the retailer’s website with minimal hassle. The concept of layaway is easy to understand; in essence, it enables you to pay for goods over time without adding additional costs.
There are numerous reasons why stores offer layaway and often, it is preferred over other methods of payment.
Layaway is more affordable
A lot of retail stores prefer laybuy or layaway because it is more affordable, making it enticing to customers to purchase. The upfront cost can be spread out over 6 weeks making it more economical, especially if the items being sold are considered a necessity.
More and more customers are opting to shop at stores with layaway options since the payment is easier and will not cause any financial burdens. Shops have seen a decrease in customers abandoning their carts at checkout after they have started offering layaway options.
Layaway is more cost-effective for merchants as well
Stores still need to pay a fee for credit card transactions for every purchase. So, offering a layaway payment option is not only more affordable for clients, but also more cost-effective for stores that are looking to cut operation costs. Not only does this payment method help to pay customers to save money, but it also helps the merchants. It’s a win-win situation, thus more and more stores have started to offer layaway options.
Layaway opens doors for a new demographic of customers
Customers or clients who are not yet financially ready to purchase a product are suddenly able to, thanks to layaway. This opens doors for a new demographic of customers. This is the reason why stores are offering this payment option because it provides them with another target market that they were not able to aim for before.
Layaway is a marketing campaign in itself
Layaway is a marketing campaign in itself (and an effective one at that) because offering a payment option, for example, that is of no interest, layaway is encouraging more shops to draw in more customers. Even if there are some fees or charges involved, the high sales will cover the layaway costs.
This is the reason why more and more stores are seeing the benefits of offering this payment option because there is no way that the store will come up short even if they started offering a no-interest payment option. However, layaway might not always be the best option and it’s better that you are informed about how layaway works.
To understand the benefits of layaway, consider the following: First, paying in monthly installments makes sense if the item costs more than one monthly payment. Plus, paying upfront will often cost less than paying overtime. That’s because credit card companies charge extra for making purchases over time. That’s why retailers offer layaway to maximize their profits. However, note that some companies allow you to make partial payments without incurring extra costs. Hence, it’s worth looking up your options before making a purchase.
