To laybuy or not to laybuy

[DaniDaemuse]

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?

[IanF]

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.

[Phil Cooper]

I thought with laybye you (literally) put the item aside when the "deposit" is paid - so you know the price?

[Pap_sak]

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.

[dellatjie]

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.

[DaniDaemuse]

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