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Thread: To laybuy or not to laybuy

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    To laybuy or not to laybuy

    Hey everyone, some advice please to settle a friendly argument.

    Another business owner, also in retail, has suggested to me offering a lay-buy option to my clients. Now for her, it works well as she keeps stock and I don't. My stock is on demand from my supplier as and when we receive an order as we do not have, what I consider to be, the necessary infrastructure to keep stock yet.

    My argument is that my suppliers prices change regularly so I my pricing must remain flexible. So I cant offer lay buy since that guarantees the customer will pay the same price in 3 months, which I cant guarantee, right?

    So in any case, I have been thinking that it would attract many more customers to buy from me but racking my brain on finding a solution. We do not operate on credit with our supplier either.

    Any suggestions? Think we could make it work?

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    Moderator IanF's Avatar
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    I would recommend get a credit card machine and then sell the goods on budget. You get the money upfront and the bank worries about collecting the money.
    Only stress when you can change the outcome!

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    DaniDaemuse (19-Sep-14), Dave A (08-Sep-14), Vanash Naick (08-Sep-14)

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    Email problem Phil Cooper's Avatar
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    I thought with laybye you (literally) put the item aside when the "deposit" is paid - so you know the price?

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    Will also depend on your margin. If for instance you could ask for most of the cost price as a deposit - I would say go for it. You also, of course, need to factor in the fact that some do not come and collect their goods - will they be easy to sell or can you return them to your supplier. BTW I always asked for a 30% deposit with 3 months to pay. I would say around one in twenty did not finish paying.

    and guys that laybuy generally do not have credit cards.

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    I have the same experience as Pap_sak: people very rarely finalise laybuy-agreements. Not sure why, but I have the figures to prove it.

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    Hi Everyone. Thank you so much for you input. I'd say that's certainly given me a fresher perspective!

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