Layaway as a Selling Option in Hard Times
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MetzyMom
Feb 11, 2009, 12:20:36 PM2/11/09
to OLA OnlineAuction Discussion
LayAway For eCommerce In A Depressed Economy?
While many sellers are selling regularly, many are not. Let's set
aside some reasons that only a seller would be responsible for (for
not getting regular sales):
1. Priced too high for today's economy. Face it folks... your item is
only worth what someone is either willing to pay for it or can afford
to pay for it. When given a choice between that Prada Handbag you've
been jonesing for or groceries, most people are picking groceries
right now... unless they have the teeth and digestive track that would
make eating the purse possible...
2. Shipping. We all know shipping prices suck. There. I've said it.
Now don't get your sensibilities all out of whack because I used a
semi-cuss word. I'm just saying what everyone, even the most
conservative person, is thinking. That said, I've looked at a pretty
nice amount of listings, and I hate to say it, but the shipping prices
here are, in too many listings, is no better than what the gougers are
charging elsewhere because they're paying fees to list and/or sell.
When gas prices went up, so did peoples shipping... but when gas
prices came down, did you lower your s/h accordingly? Of course not!!!
When you tack on your 'handling' fee, is it more than a few cents
(cents... not dollars... cents)? In your listing, do you describe what
your 'handling fee' covers? When you add 'packaging' to that
'handling' fee, are you charging the customer for your time or just
the cost of packaging? Are you taking advantage of free supplies from
the post office (which most buyers know about)? Are you printing your
own postage so that you get the Delivery Confirmation number and
service for free (most buyers know about this too)? Or are you
charging your customer for new packaging but sending used boxes,
recycled peanuts, second hand bubble envelopes, etc.? I'm all for
recycling... but I don't charge for what I didn't have to pay for in
the first place... do you?
3. SEO/RSS. Not even eBay is providing the same Google exposure they
were a year ago. All successful sellers, regardless of where they
sell, will tell you that they do some of their own feeding, whether it
be feeding listings directly themselves (putting their listings
directly into Google, or Oodle, or Ask, etc.), or using web submission
sites (like websubmission.com, hotfrog.com, etc.), blogs (like
wordpress, blogspot, or other sites where blogging is acceptable and
encouraged, like SellersArena, or even participating in chats here and/
or at whatever venue you sell at). The days of listing it being the
sole thing you do for sales is over. It's just the way it is...
OK. So let's say you're doing everything right and still aren't
selling. It's probably because even at a lower than value price, it's
still too expensive right now. Let's use OLA Seller LFWoodworking for
an example (I hope you don't mind Rick!!!). Rick makes and sells
beautiful wood art. Stunning stuff. An average piece SHOULD be
selling, in a normal economy, for about $75 a piece plus shipping.
LFWoodworking has those pieces currently priced at an average of $25
each plus $9.25 Priority shipping. His product is priced very low for
what it is and should be selling... but again, when given the choice
of how to spend $35, most people are buying groceries not pretties, no
matter how well priced (ok Rick, I'm done... lol...).
I got to thinking... and we know how 'outside the box' I can be... and
here is my idea of a solution for items that folks would love to have
if it weren't that they've got to come up with a lump sum (no matter
that it's only $20 or $30... it's still a pretty large lump to many
right now).
LAYAWAY!!!
It wouldn't actually be that difficult to do or to incorporate into
your listings, whether Fixed Price or Classic Auctions. Sure, you'd
need to keep some sort of record (both Buyer AND Seller), but it
wouldn't take more than a few minutes a week, even if you do it by
hand.
Here is an example:
OK. Let's say I have a ring for sale for a fixed price of $200.00. Not
many could afford it right now, right? BUT let's say I add to my
auction a payment plan... say a 60 day payment plan, which works out
to be 4 payments of $50... or 8 payments of $25... however you'd want
to work it out with your customer. Shoot, add 2 or 3 payment plans!
I hate to do it Rick, but I'm going to use you again... lol... OK...
let's say someone wants one of your Man's Best Friend wood plaques...
let's use this one:
http://www.onlineauction.com/index.php?page=auction:view_item&auction_id=940567&title=Wolf_Silohette_Solid_Oak_Hand_scroll_sawn_Wall_Art_Plaque
. OK, it's $27.00 plus $9.25 Priority Mail shipping. The price for the
plaque is way low for what this item is worth. The shipping cost is
more than fair, probably lower than the actual postage will actually
run. BUT where $40 at one time might be too much for someone to
handle, $10 a week would probably be do-able!!!
So figure you do 7 layaways, that would be $70 a week coming in...
which would would be the same as selling about 2 a week...
As far as lisings goi, you could simply add "Ask Me About Layaway
Plans" to your listings... Me, I'd actually put 1 or 2 plans in the
listing, maybe something like:
LAYAWAY PLANS
Option 1: $10 a weekOption 2: $20 a PaydayLayaway Plans are for your
convenience. All sales are final, which means once you purchase this
item, you will be expected to make the agreed upon payments. My
regular refund policy will be in effect for the item, but no refunds
will be given for the layaway. For example: If you decide you no
longer want to pay for the item, regardless of reason, any monies
placed towards the Layaway would be considered non-refundable. If you
pay off the item, and it is damaged when it arrives, the regular
refund policy would take effect.
I know there are other things to consider before you would impliment
this idea (what if someone misses a payment, etc.), but that is
something you'd work out for yourself, with your own policy. I'm just
putting the IDEA out there.
What do you think?
While many sellers are selling regularly, many are not. Let's set
aside some reasons that only a seller would be responsible for (for
not getting regular sales):
1. Priced too high for today's economy. Face it folks... your item is
only worth what someone is either willing to pay for it or can afford
to pay for it. When given a choice between that Prada Handbag you've
been jonesing for or groceries, most people are picking groceries
right now... unless they have the teeth and digestive track that would
make eating the purse possible...
2. Shipping. We all know shipping prices suck. There. I've said it.
Now don't get your sensibilities all out of whack because I used a
semi-cuss word. I'm just saying what everyone, even the most
conservative person, is thinking. That said, I've looked at a pretty
nice amount of listings, and I hate to say it, but the shipping prices
here are, in too many listings, is no better than what the gougers are
charging elsewhere because they're paying fees to list and/or sell.
When gas prices went up, so did peoples shipping... but when gas
prices came down, did you lower your s/h accordingly? Of course not!!!
When you tack on your 'handling' fee, is it more than a few cents
(cents... not dollars... cents)? In your listing, do you describe what
your 'handling fee' covers? When you add 'packaging' to that
'handling' fee, are you charging the customer for your time or just
the cost of packaging? Are you taking advantage of free supplies from
the post office (which most buyers know about)? Are you printing your
own postage so that you get the Delivery Confirmation number and
service for free (most buyers know about this too)? Or are you
charging your customer for new packaging but sending used boxes,
recycled peanuts, second hand bubble envelopes, etc.? I'm all for
recycling... but I don't charge for what I didn't have to pay for in
the first place... do you?
3. SEO/RSS. Not even eBay is providing the same Google exposure they
were a year ago. All successful sellers, regardless of where they
sell, will tell you that they do some of their own feeding, whether it
be feeding listings directly themselves (putting their listings
directly into Google, or Oodle, or Ask, etc.), or using web submission
sites (like websubmission.com, hotfrog.com, etc.), blogs (like
wordpress, blogspot, or other sites where blogging is acceptable and
encouraged, like SellersArena, or even participating in chats here and/
or at whatever venue you sell at). The days of listing it being the
sole thing you do for sales is over. It's just the way it is...
OK. So let's say you're doing everything right and still aren't
selling. It's probably because even at a lower than value price, it's
still too expensive right now. Let's use OLA Seller LFWoodworking for
an example (I hope you don't mind Rick!!!). Rick makes and sells
beautiful wood art. Stunning stuff. An average piece SHOULD be
selling, in a normal economy, for about $75 a piece plus shipping.
LFWoodworking has those pieces currently priced at an average of $25
each plus $9.25 Priority shipping. His product is priced very low for
what it is and should be selling... but again, when given the choice
of how to spend $35, most people are buying groceries not pretties, no
matter how well priced (ok Rick, I'm done... lol...).
I got to thinking... and we know how 'outside the box' I can be... and
here is my idea of a solution for items that folks would love to have
if it weren't that they've got to come up with a lump sum (no matter
that it's only $20 or $30... it's still a pretty large lump to many
right now).
LAYAWAY!!!
It wouldn't actually be that difficult to do or to incorporate into
your listings, whether Fixed Price or Classic Auctions. Sure, you'd
need to keep some sort of record (both Buyer AND Seller), but it
wouldn't take more than a few minutes a week, even if you do it by
hand.
Here is an example:
OK. Let's say I have a ring for sale for a fixed price of $200.00. Not
many could afford it right now, right? BUT let's say I add to my
auction a payment plan... say a 60 day payment plan, which works out
to be 4 payments of $50... or 8 payments of $25... however you'd want
to work it out with your customer. Shoot, add 2 or 3 payment plans!
I hate to do it Rick, but I'm going to use you again... lol... OK...
let's say someone wants one of your Man's Best Friend wood plaques...
let's use this one:
http://www.onlineauction.com/index.php?page=auction:view_item&auction_id=940567&title=Wolf_Silohette_Solid_Oak_Hand_scroll_sawn_Wall_Art_Plaque
. OK, it's $27.00 plus $9.25 Priority Mail shipping. The price for the
plaque is way low for what this item is worth. The shipping cost is
more than fair, probably lower than the actual postage will actually
run. BUT where $40 at one time might be too much for someone to
handle, $10 a week would probably be do-able!!!
So figure you do 7 layaways, that would be $70 a week coming in...
which would would be the same as selling about 2 a week...
As far as lisings goi, you could simply add "Ask Me About Layaway
Plans" to your listings... Me, I'd actually put 1 or 2 plans in the
listing, maybe something like:
LAYAWAY PLANS
Option 1: $10 a weekOption 2: $20 a PaydayLayaway Plans are for your
convenience. All sales are final, which means once you purchase this
item, you will be expected to make the agreed upon payments. My
regular refund policy will be in effect for the item, but no refunds
will be given for the layaway. For example: If you decide you no
longer want to pay for the item, regardless of reason, any monies
placed towards the Layaway would be considered non-refundable. If you
pay off the item, and it is damaged when it arrives, the regular
refund policy would take effect.
I know there are other things to consider before you would impliment
this idea (what if someone misses a payment, etc.), but that is
something you'd work out for yourself, with your own policy. I'm just
putting the IDEA out there.
What do you think?
cvmso021
Feb 11, 2009, 1:54:46 PM2/11/09
to OLA OnlineAuction Discussion
Very good point Metzy! I've already integrated payment plans into my
website www.menomintreasures.net and have started putting it into my
OLA listings. I try to make items as cheap as possible. What I do is I
will have a set initial payment and then 30 days from the date
purchased, another amount will be taken out. Most items only have 2
payments, but the more expensive they are then the more monthly
payments they have. By purchasing on my website, the payments are
taken automatically through PayPal or Google Checkout only, because I
do ship worldwide and don't want to end up being taken. But on OLA,
I'm also doing payment plans that can be paid for monthly or whatever
works best for the customer, and can be paid electronically or be paid
through money order or even personal checks, I prefer money orders
though because there is no 10 day wait for clearance.
Some sellers that are doing layaway, wont ship until the product is
100% paid for, but not me. As soon as I get the first payment for the
order, I ship out right away. The only rule I have when purchasing via
layaway is that there will be no refunds and returns will only be made
on defective products. This rule doesn't apply to payments made up
front. Is this a bad rule to have or should I keep it fair for
everyone?
I'm also thinking of lowering the layaway cost on many items, but I
may not ship until after the 3rd or 4th payment is made. At this time
the layaway program only allows one plan, and I have it set up to be
monthly from date of purchase. This will probably change on the more
expensive items though and instead of being monthly, it will become
every 2 weeks because that's when most people get paid. Doing it that
way will also allow me to ship faster instead of waiting for 3-4
months to ship an item out. As it stands right now, all orders are
processed as soon as payment is made, and shipped within 2-3 days.
Taking more ideas on this subject is a great idea and to help build
insight as to what others are doing or think is better.
Mat
www.ola.com/store/cvmso021
www.menomintreasures.net
website www.menomintreasures.net and have started putting it into my
OLA listings. I try to make items as cheap as possible. What I do is I
will have a set initial payment and then 30 days from the date
purchased, another amount will be taken out. Most items only have 2
payments, but the more expensive they are then the more monthly
payments they have. By purchasing on my website, the payments are
taken automatically through PayPal or Google Checkout only, because I
do ship worldwide and don't want to end up being taken. But on OLA,
I'm also doing payment plans that can be paid for monthly or whatever
works best for the customer, and can be paid electronically or be paid
through money order or even personal checks, I prefer money orders
though because there is no 10 day wait for clearance.
Some sellers that are doing layaway, wont ship until the product is
100% paid for, but not me. As soon as I get the first payment for the
order, I ship out right away. The only rule I have when purchasing via
layaway is that there will be no refunds and returns will only be made
on defective products. This rule doesn't apply to payments made up
front. Is this a bad rule to have or should I keep it fair for
everyone?
I'm also thinking of lowering the layaway cost on many items, but I
may not ship until after the 3rd or 4th payment is made. At this time
the layaway program only allows one plan, and I have it set up to be
monthly from date of purchase. This will probably change on the more
expensive items though and instead of being monthly, it will become
every 2 weeks because that's when most people get paid. Doing it that
way will also allow me to ship faster instead of waiting for 3-4
months to ship an item out. As it stands right now, all orders are
processed as soon as payment is made, and shipped within 2-3 days.
Taking more ideas on this subject is a great idea and to help build
insight as to what others are doing or think is better.
Mat
www.ola.com/store/cvmso021
www.menomintreasures.net
MetzyMom
Feb 11, 2009, 2:40:14 PM2/11/09
to OLA OnlineAuction Discussion
I think your policies are very liberal and I hope people see how hard
you are working for their business.
In response to your question, I think you can take it on a case-by-
case plan until you see how it plays out!
Well Done, Mat, Well Done.
On Feb 11, 11:54 am, cvmso021 <stamps_coins_m...@yahoo.com> wrote:
> Very good point Metzy! I've already integrated payment plans into my
> websitewww.menomintreasures.netand have started putting it into my
you are working for their business.
In response to your question, I think you can take it on a case-by-
case plan until you see how it plays out!
Well Done, Mat, Well Done.
On Feb 11, 11:54 am, cvmso021 <stamps_coins_m...@yahoo.com> wrote:
> Very good point Metzy! I've already integrated payment plans into my
cvmso021
Feb 12, 2009, 6:30:31 AM2/12/09
to OLA OnlineAuction Discussion
Thanks Metzy :D
To also help customers/buyers, I'm using Live Person as a tool to turn
98% of non-buying customers into buying customers. Talking to a real
person helps to seal the deal. I have been using Live Person for about
4 months now and I love their service. Customer service is always
friendly and ready to help at anytime. They are a little costly
though, at $99 per month, but their services are far better than I've
seen. There is a new website hosting company I've seen that actually
integrates live help like Live Person that I'm using now and is
cheaper to run. I'm not sure how well their services are though, and
haven't decided on opening a new store with them or not.
I know that's getting off topic, sorry.
Back to layaway...
I've been adding many new items to my website, and plan to launch the
newly listed products on Friday. I've been working more on my website
than OLA, but that will change as soon as I get my website finished.
With over 5 million products, it's hard to get everything listed in a
short amount of time. I'm also adding more items into the layaway
program which is not yet available to my wholesalers. Like you said
before, Metzy, a $100 item doesn't sell to well, but taking it down to
just $25 in 4 easy payments is quite easy to do and can land more
sales. I'm taking that fact into consideration as well and hopefully
sales will pick up even more. I may have to put in a disclaimer on
some products that they may not ship until a certain amount is
reached, but I hope my customers understand, and that I am looking out
for them in these tough times.
I'm also paying close attention to many competitors and keeping my
retail prices either the same or cheaper. On many brand new items
(I'll use movies on DVD as an example), I can sell for a lower cost
than what my competitors can. Or I can actually give my wholesalers a
better profit margin so they can make more money! I wont go into
further details because I don't want to give away my secrets for
free! :P
To also help customers/buyers, I'm using Live Person as a tool to turn
98% of non-buying customers into buying customers. Talking to a real
person helps to seal the deal. I have been using Live Person for about
4 months now and I love their service. Customer service is always
friendly and ready to help at anytime. They are a little costly
though, at $99 per month, but their services are far better than I've
seen. There is a new website hosting company I've seen that actually
integrates live help like Live Person that I'm using now and is
cheaper to run. I'm not sure how well their services are though, and
haven't decided on opening a new store with them or not.
I know that's getting off topic, sorry.
Back to layaway...
I've been adding many new items to my website, and plan to launch the
newly listed products on Friday. I've been working more on my website
than OLA, but that will change as soon as I get my website finished.
With over 5 million products, it's hard to get everything listed in a
short amount of time. I'm also adding more items into the layaway
program which is not yet available to my wholesalers. Like you said
before, Metzy, a $100 item doesn't sell to well, but taking it down to
just $25 in 4 easy payments is quite easy to do and can land more
sales. I'm taking that fact into consideration as well and hopefully
sales will pick up even more. I may have to put in a disclaimer on
some products that they may not ship until a certain amount is
reached, but I hope my customers understand, and that I am looking out
for them in these tough times.
I'm also paying close attention to many competitors and keeping my
retail prices either the same or cheaper. On many brand new items
(I'll use movies on DVD as an example), I can sell for a lower cost
than what my competitors can. Or I can actually give my wholesalers a
better profit margin so they can make more money! I wont go into
further details because I don't want to give away my secrets for
free! :P
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