Q: Do you offer layaways?
“Yes! Layaway is a wonderful way to begin closing a sale. Often times the client is set on something and just doesn’t have the funds for it at the moment. Offering the option of layaway really helps tie them to the piece emotionally and financially, rather than just leaving and potentially forgetting about it, or settling for a more affordable piece elsewhere. Not only are they tied to the piece because they’ve put down a deposit, but now the client feels he/she has accomplished something, like they are half way there. This is also a fantastic option for clients that do not get approved for financing and cannot pay a lump sum at once. It is so easy for them to think of it like ‘free financing,’ especially if it is for an engagement. They don’t need the ring until it’s time to propose anyway. I always ask if the proposal date is far off. If it is, my clients tend to really like this option. Twenty percent down, and one payment per month is my layaway agreement. They decide the amount of the payment, as long as it is made each month. This flexibility helps ease your clients and they tend to trust you in that you are there to help them through this. I would absolutely recommend offering layaway options to any jeweler that has not done it before. I have only had positive experiences and higher close rates as a result.”
Florencia de la Torre, owner
Flawless Diamonds
League City, TX
“These days you have to do whatever it takes to make the sale. For me, what works best in terms of layaways is taking post-dated checks. Customers provide three post-dated checks, dividing the cost into three equal amounts, in 30-, 60- and 90-day payments. The first check works like a down payment while the other two checks are deposited on the post-dated dates. This works well for me as the store owner because the payments are in hand and the transaction is completed in three months while the customer has the product in hand. I’ve done this for a number of customers, most recently for a US Marine from Ohio who did a custom designed ring with me.”
Eric Coleman, owner
Hillcrest Designer Jewelry
Little Rock, AR
“We’ve been doing layaways since we opened our store 10 years ago. There are a lot of jewelry-buying occasions where layaways are the best way for customers to make the purchase and for us to make a sale. Fourth quarter sales for us begin in August, September and October when husbands and boyfriends see a little something they want to buy for their loved ones. About 20 percent is put down on the purchase and they make a payment every two weeks. We ask that they come in to the store or mail us a check. We don’t take credit cards by phone because the rate is too high. We don’t offer financing through a bank or finance company, so layaways work well for us, especially with bridal customers. When young couples come in to purchase their engagement ring, the wedding bands are an add-on that we do by layaway. Weddings are usually one year to 18 months away from the engagement ring purchase, which gives them plenty of time to pay off the wedding bands. And, they’ve got the prices and styles they want locked in early in the wedding planning stage. Lastly, we think layaways help customers, again young bridal customers, live within their means. We don’t want people going into debt and having regrets over a purchase made with us.”
Rosanne Kroen, owner
Rosanne’s Diamonds & Gold
South Bend, IN
“I’m a 40-year veteran in this industry and layaways have always been an important part of making sales. We opened this location in 2004 and we actively promote layaways, on our marquee outside the store, in-store and in-case signage, as well as social media and radio. Layaways aren’t the only message in most of these promotional platforms, but it is always mentioned. When special orders and custom projects are factored in, layaways account for about 10 to 15 percent of my business each year. Our layaway policy is 20 percent down, and equal remaining payments made within six months. We do offer some flexible terms in special cases, but for the most part, this policy works well for everyone.”
Joe Bacher, owner
J. Bacher Fine Jewelry
St. Harrisburg, IL
“The misconception of layaways is that this payment option is utilized mostly by people that are in a financial pinch. Yes, it can be helpful for those on a tight budget, but at our store people with stellar credit, those that use American Express Black cards, routinely put items on layaway. I have about a dozen or so clients that routinely put one or multiple pieces of jewelry on layaway. It’s typically a want item instead of a need item. I have one client who is retired and doesn’t have as many occasions or places to wear her fine jewelry. Making layaway purchases with us makes her feel special. At any given time this client has one or even up to three pieces on layaway, for herself, her daughter or her granddaughter. And, the checks come in like clockwork. We’re surrounded by chain stores that don’t offer layaways so it’s a market differentiator for us. And, if we didn’t offer layaway, people wouldn’t buy at certain price points with certain frequencies, which would really hurt overall sales. Also, we’ve been down that road with credit applications from big banks and financial institutions and don’t like their aggressive approach. We’re a small store and layaways work great for us. In the slower summer months if a few layaway payments come in, and some good repairs happen on that slow summer day, that could be your day – which is better than nothing.”
Karin Benado, owner
Diamonds R Forever
Kennesaw, GA
