Lay away unreasonable??

[RonFrank]

I'm just curios if anyone else has done something similar?? Or what any dive shop owners think?? Thanks for the responses keep em coming.

Does it matter what other business owners think?

Yes, some diveshops allow layaway. However what you are asking for is a no interest loan, and from a business perspective there maybe no advantages to providing that service.

I can not think how additional responses will help your situation unless they come from the owner you want to do business with. Rather then sitting around online waiting for people to respond, why not just go down to the dive shop, and work this out. As you sit at the computer reading our speculation, others maybe purchasing the gear you want right now. It's not going to matter much if your LDS does layaway or not if the gear he is closing out is gone by the time you decided to approach them.

 

[oly5050user]

As an ex business owner.....I wouldnt do it. Tried to be a nice guy...not once but twice...and got bit in the butt...and I dont mean in the nice way.

absolutely agree with you... had the same experience as you..What is wrong with the customer using a credit card and paying the card off as a lay a way?? LDS is not the bank of NY..especially with the deal written about ,the lds owner may be trying to get some capital to pay his rent and layaway does not pay the rent..you are getting a deal with the condition of here it is -pay for it in full now-other wise its the standard price....Agai, if you cannot afford an activity make changes so that you can ,or choose a less expensive activity..

 

[Mike Nelson]

I'm a bit curious - how is committing to a layaway agreement much different than getting a "90 days, same as cash" or similar deal? You're still buying equipment, you're still making regular payments as part of a contract you've entered into.

The only difference is that you have to wait until it's paid off to receive the equipment, and the vendor isn't getting his money right away (which he would be if the deal was being financed.) I'm all for staying out of debt - my debt load is higher than I'd like it to be, too. But if I can't pay cash, I just don't buy. There's always another deal around the corner.

Layaway kind of hearkens back to the day when credit was much harder to come by, and wasn't generally available for consumer goods - just cars and homes, with the occasional Penneys or Sears charge card.

 

[jasonX5]

At one point in my life I had a lot of debt then I got out from underneath it. I will never go into debt again for any reason. If for some reason I couldn't pay him the rest within 3 months then I would let him keep 25% as a restocking fee. Hey, it may sound like an old fashioned idea but at age 22 and no debt, I feel good about where I'm heading financially.

Good for you about the no debt thing .. stick with it! That being said in the bigger scheam of things $1,000 bucks is not a lot.. and as a 22 year old who was once under a lot of debt you should find out what your credit rating is and what you need to do to totally rehabilitate it .. that may include taking on debt (and paying it off regularily). It is quite common for people to be both debt free and a bad credit risk..
It can affect such odd things as your health/life/home/auto insurance and whether or not you get a certain job.. not to mention any future mortgage applications.

AS to the Layaway thing ... all you can do is ask .. if I was selling something that had already been discounted I would not accept layaway.. it is on sale because it needs to move NOW.

I don't want to turn this into the debt theme hour but I've changed my life drastically due to a guy named Dave Ramsey. His philoshopy is to never go into debt and pay as you go. Well I just finished paying off all my debt so within the next 6 months I'll have close to $8,000 in cash since I have no payments. I don't believe in building a credit history as it's not necessary.

 

[jasonX5]

To all others: You're correct the LDS is not Bank of America however, I'm not receiving the product yet either!!!! It's a win win situation, he makes the sale and I get the merchandise. What risk is there to the LDS???? If I don't pay the scheduled payments then he keeps the money, if I do he makes a sale and keeps the money.

This should be a lesson to all LDS owners. You're in the business to create a service, online has you beat on prices so at least create a service to benefit the customer. If layaway is so evil and non benfeical to stores then why does Wal-Mart still practice this...??? hint hint... it's a service and makes sales for the store.

I use to have the typical I want it now American attitude but I had to grow up. I'm going to contact the LDS today and see what he has to say if it works then it does if not that's okay too. "Ron Frank" You seem really rude I came on here to get some different ideas on how to approach the LDS with different types of law away options i.e. make a payment every month, restocking fee in case he's nervous I won't pay it off etc... Thanks for the welcome!!!!

 

[Mike Nelson]

Jason, it's not "win-win." Layaway primarily benefits the customer. He's making no interest payments over a period of time, while the vendor is trying to get the gear out of inventory (which costs him money) and get cash flow going now. If you default, he's still stuck with the gear, which is now older yet and harder to sell. He's much better off with cash in hand, and space in his shop to get new merchandise in.

You're right in that layaway is a "service." Walmart probably practices it because I have a feeling that a not insignificant percentage of their target customer base doesn't qualify for credit.

Ron wasn't being rude - he was being realistic. Don't worry about what we think, just head on down to the shop and ask. While you're fretting, your gear may be getting loaded into somebody's car.

BTW - if you plan to always pay cash for everything: car, house, etc. then a credit history/rating may not be needed. But these days even renting an apartment or getting a job will typically involve a credit check. My parents, who always paid cash for everything, had no outstanding debts, had never defaulted on anything, had quite the surprise when they went to get a Sears card to facilitate phone ordering. They had a hard time getting one, because they had no recent credit history!

It's great that you've pulled yourself into and out of a credit hole at a very young age, now you just need to adjust your attitude a bit and you'll be on your way to great things.

 

[jasonX5]

Jason, it's not "win-win." Layaway primarily benefits the customer. He's making no interest payments over a period of time, while the vendor is trying to get the gear out of inventory (which costs him money) and get cash flow going now. If you default, he's still stuck with the gear, which is now older yet and harder to sell. He's much better off with cash in hand, and space in his shop to get new merchandise in.

You're right in that layaway is a "service." Walmart probably practices it because I have a feeling that a not insignificant percentage of their target customer base doesn't qualify for credit.

Ron wasn't being rude - he was being realistic. Don't worry about what we think, just head on down to the shop and ask. While you're fretting, your gear may be getting loaded into somebody's car.

BTW - if you plan to always pay cash for everything: car, house, etc. then a credit history/rating may not be needed. But these days even renting an apartment or getting a job will typically involve a credit check. My parents, who always paid cash for everything, had no outstanding debts, had never defaulted on anything, had quite the surprise when they went to get a Sears card to facilitate phone ordering. They had a hard time getting one, because they had no recent credit history!

It's great that you've pulled yourself into and out of a credit hole at a very young age, now you just need to adjust your attitude a bit and you'll be on your way to great things.

Mike, I appreciate you taking the time to respond. However, I diagree with you, lay away does benefit the LDS in it keeps me loyal to his shop. Plus, the gear is not going to age too much in a couple of months. I think we see a lot of LDS shops going under because their prices can't match the nets but service is worth something. Working with people in my eyes is a service and can keep a customer loyal to your shop even if your price is a little higher than on the net. I just guess this is where we disagree.

Not to be rude, but I had $20,000 in debt due to a car and credit cards. I was never once late on any payments I just got sick of living check to check like other typical Americans. I "RAN" into the $20,000 worth of debt but "CRAWLED" out in 2 years. I don't mean to sound harsh when I say that nor am I trying to be arrogant. I've turned the corner and I'm never looking back. I've realized you can't obtain wealth or "Financial Peace" If you send all your money to banks on stuff you just are patient enough to wait on. I now have a $2,000 emergency fund and I'm working on making that $8K. I don't mean to give you my financial situation just trying to tell you where I'm coming from. If this deal with my LDS doesn't work out then that's okay there's always another deal to be had. Thanks and no hard feelings.

 

[Wayward Son]

See what he says. I'm on such terms with my main shop that I can take most anything within reason & they don't even worry about a down payment. I'll pay for it promptly & I'm a steady stream of cash for them. They also do layaway for people they don't know so well. Other shops don't know me so well, I'm not in them that much & it's a cash & carry deal.

If he's agreeable, fine, you both get what you want.

 

[jasonX5]

See what he says. I'm on such terms with my main shop that I can take most anything within reason & they don't even worry about a down payment. I'll pay for it promptly & I'm a steady stream of cash for them. They also do layaway for people they don't know so well. Other shops don't know me so well, I'm not in them that much & it's a cash & carry deal.

If he's agreeable, fine, you both get what you want.

Exactly, thanks Wayward!! He's not in right now so when ever he gets in I'll try to work something out with him.

 

[RonFrank]

To all others: You're correct the LDS is not Bank of America however, I'm not receiving the product yet either!!!! It's a win win situation, he makes the sale and I get the merchandise. What risk is there to the LDS???? If I don't pay the scheduled payments then he keeps the money, if I do he makes a sale and keeps the money.

As for Layaway being win...win.. generally not true which is why a lot of shops don't do it. The Retailer takes the risk that you will not come up with the rest of the funds, and they are unable to then sell the merchandise to someone who DOES have the $$$. It's a hassle for them, and they are basically extending you CREDIT with no interest.

This should be a lesson to all LDS owners. You're in the business to create a service, online has you beat on prices so at least create a service to benefit the customer. If layaway is so evil and non benfeical to stores then why does Wal-Mart still practice this...??? hint hint... it's a service and makes sales for the store.

Walmat's layaway policy is 10% down for 60 days, and does not apply to clearance or sale merchandise. I'm not 100% sure, but I think they keep the downpayment if the transaction is not completed.

Wallmart keeps a LOT more stock on hand then most retailers, so their layaway does not impact their ability to continue to sell merchandise. They have a large customer base that can not get credit, so this caters to that base without impacting their ability to move product.

Just because it's a good way for a Giant like wallmart to do business does NOT mean that it's a good way for a small retailer to operate.

I use to have the typical I want it now American attitude but I had to grow up.

Your delimma would be solved if you could get 90 days financing no interest, and then just pay it off. That would be good credit management.

I "Ron Frank" You seem really rude I came on here to get some different ideas on how to approach the LDS with different types of law away options i.e. make a payment every month, restocking fee in case he's nervous I won't pay it off etc... Thanks for the welcome!!!!

What did I say that was rude? I gave you good advice, and took the time to do so.

The *OPTIONS* are pointless unless the LDS is asking YOU to dictate THEIR terms. Most retail operations have policies, and they are going to stick with them.

If you disagree with this (and I was not the only one that suggest it), then say why, and how you find this rude.

Grow some skin guy, my advice was nothing personal regardless of how you choose to take it.