While buy now, pay later options have surged in popularity, layby is still a traditional form of credit retailers offer. Although it has been on a decline, particularly with BNPL, it is still in use and is a lifesaver for many people. So though layby may seem outdated to many in our instantly gratifying world, it remains a lifeline for budget-conscious consumers and can be a savvy tool for retailers looking to boost sales and build loyalty.
Why offer layby to your customers?
Some people want it, and no one wants to reject a customer.
- More customers: Layby helps you reach people who want to budget their spending, don't like credit cards, or can't get traditional loans.
- Bigger sales: Customers are far more likely to splurge on pricier items when they can break up the cost into manageable payments. Layby removes the sticker shock factor that deters many from bigger purchases.
- More loyalty: Unlike one-and-done transactions, layby creates an ongoing relationship with shoppers as they return to make their instalment payments,
- More traffic: As people using layby have to keep coming back to your shop to finish their payments, if so, they may buy more!
Setting up layby in your store
Here's the important stuff you must figure out:
- Play by the rules: The Australian Competition and Consumer Commission (ACCC) has some of the layby requirements on its website.
I would suggest that you cut and paste one of the majors' pages on their layby terms and conditions you like and then modify it for your shop on the grounds that they probably have had it checked out by lawyers and experts. Make sure you pick a major that talks about your state. I have known people to get in trouble with the state authorities.
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Now make your policy: This is important to make a policy for things like:
- How big the deposit has to be
- How often customers make payments (weekly, fortnightly, etc.)
- What happens if someone cancels (do they lose some money?)
- What happens if the layby is cancelled?
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Layby system: How are you going to keep track of everything?
- Small shops: Pen and paper might work just fine.
- Bigger shops: You'll want some special layby software like our POS system with layby built-in.
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Train your crew: Ensure your staff knows how layby works, the shop's rules, and how to use your system.
Tell people about your layby program.
There is no point in having it if your customers do not know you offer layby both in-store. It would be best if you told them. Get the word out there:
- Advertise special deals: Consider offering a layby with no fees during holidays!
Wrapping it up
Layby can help you reach more customers, help make more extensive sales and keep your regulars happy. Today it does let you stand out from the crowd.
Do you need help setting up laybys? Our POS software can make managing laybys much easier.
