A Detailed guideline: What Is Layaway Jewelry?

Layaway jewelry plans allow you to have jewels that you can buy by making payments that you can pay several times, not all at once. Many large jewelry stores or chain stores offer this installment plan to satisfy their customers and help everyone get expensive jewelry.

You can fix the existing discount rate by placing the jewelry you want to buy in installments. In this way, you can prevent your product from being sold. 

So, What Is Layaway Jewelry? 

Layaway is a payment system that is very useful and beneficial for most jewelry lovers. It is a system where the customer deposits a certain amount each time until they complete the full payment amount, and in this process, the seller keeps the product in the store. They usually made payments in installments.

Layaway Jewelry

 Jewelers can also increase their sales by offering such a payment option to their customers. It should not forget that besides the size of the advantages, it will cause a waste of time with some small paperwork.

While Layaway plans are usually offered one-on-one in-store, some stores also offer this service online. Until the payment plan of the product you want to buy is completed, the store keeps it for you and prevents it from being sold. When you finish paying the installments, you can wear your necklace, bracelet, earrings, or wedding ring as you wish.

You may not always have that much money with you at once for the jewelry you want to buy. In such cases, layaway plans will be your biggest supporter. Until you have a sufficient budget or your payment plan is completed, your jewelry will be protected on your behalf in the store and will not be sold. Layaway plans will also greatly benefit stores. Because it will enable them to create a loyal customer portfolio. They offer a flexible payment plan to their loyal customers.

How Does Jewelry Layaway Work?

  • First, decide which jewelry you want to buy.
  • Pay a small amount of money as a down payment.
  • Pay at regular intervals and in fixed amounts until you pay the full sale price.
  • Stick to the jeweler’s or store’s layaway plan.
  • You can decide how payments are split, or the store may have a fixed payment plan.
  • The jewelry you choose will remain in the store until your payment is completed and will not be sold.
  • This form of payment allows you to fix the discount on the product or not be affected by the price increase.
  • If you are a person who has trouble saving money, it will be the perfect payment plan for you.
  • Once the Layaway plan is complete, you can take your beautiful jewelry from the store.

Your Layaway Jewelry Policy

If you do decide to offer your customers a layaway option, be sure to determine your terms, policies, and payment schedule carefully–and write them out clearly and simply. Consider such issues as:

  • Whether you’ll refund any of the payments already made if the customer decides not to finish buying the item.
  • How much of an initial deposit do you require.
  • Whether you’ll add on a service charge for handling the installment payments.
  • Which purchases are eligible for layaway.
  • How frequently the customer makes payments, and how strict you’ll be about delinquent payments.
  • How long of a total layaway period you’re willing to offer.
  • Also, you’ll need to find a good place to store the layaway jewelry items. They’ll need to be kept separate from the rest of your inventory so you can locate them when they’re paid in full–and you don’t want to accidentally sell them to someone else in the meantime!

Layaway Jewelry with Less Hassle

Layaway Jewelry

Lots of unexpected issues can come up if you offer a layaway plan. Here are some tips for heading off problems before they start:

  • Get several types of contact info from the customer – work and home phone numbers, email, and mailing address. Communication is one of the keys to success in this type of transaction.
  • Fill out a two-part receipt for the initial deposit and for each payment received thereafter; be sure both parties get a receipt of each transaction.
  • Have the customer sign and date a pickup receipt when they pay off and retrieve the layaway item.
  • Clearly spell out the amount of the customer’s required payment installments, and when they are due. Contact them immediately when an installment is missed.
  • Make sure the customer understands your refund (or no refund) policy.
  • Name and describe the layaway jewelry item(s) and price very clearly on the layaway form so there can’t be a dispute later.
  • Have an attorney look over your policy and form to be sure they follow regulations set by the Federal Trade Commission and your particular state. Also, ensure that your layaway agreement legally protects your interests no matter what your customer does with his/her end of the bargain.

Jewelry Stores that Offer Layaway Plans

Layaway Jewelry

There are different stores and chain markets that offer layaway plans to their customers. You can choose the one that fits you more. There are different payment plans, discounts, prices, and even more to decide.

Sears

It is possible to get your jewelry with layaway both in-store and online. The only difference is that you cannot get everything you want online layaway sales because only selected items. In terms of down payment, there is no need if you buy from the store directly, however, you need to pay 0.01 if it is online. The store fixes the payment plan. It needs to be completed within 8 weeks (online layaway) or 12 weeks (in-sore layaway) and you need to pay every 2 weeks. In terms of cancellation, it depends on how you purchase your jewelry, whether it is online or in-store.

Day’s Jewelry

It is possible to get your jewelry with layaway both in-store and online. As a down payment, you need to pay 10% of the price. The payment plan is completely up to you. You can decide how to pay and you can choose the number of payments. The only thing you need to keep in mind is that you need to pay at least 10% of the price for each payment. In terms of cancellation, if it has happened after 30 days, the store keeps 20% of the deposit.

Kay Jewelers

It is possible to get your jewelry only from the store, there is no online offer. Down payment is depending on the purchase amount. You can decide how to pay and you can decide the number of payments. The only thing you need to keep in mind is that you should pay at least once a month and each month. It has to be completed in 6 months. In terms of cancellation, there are different terms accepted by different stores.

Jared the Galleria of Jewelry

It is possible to get your jewelry only from the store, there is no online offer. Down payment is depending on the purchase amount. You can decide how to pay and you can choose the number of payments. The only thing you need to keep in mind is that you should pay at least once a month and each month. In terms of cancellation, there are different terms accepted by different stores.

The Jewelry Exchange

It is possible to get your jewelry with layaway both in-store and online. Down payment is 25% of the purchase amount. You can decide how to pay and you can choose the number of payments. However, it is an important point that you should pay the first payment within 90 days in order to show that you are not going to cancel. In terms of cancellation, there is none. On the other hand, in terms of refund, the store gives you a credit.

Reeds Jewelers

It is possible to get your jewelry only from the store, there is no online offer. Down payment is 10% or 25% of the purchase amount depending on the jewelry itself. The payment plan should complete within 6 months. Each payment should be over $25. Depending on the location of the store you buy your jewelry, cancellation terms change.

Helzberg Diamonds

It is possible to get your jewelry only from the store, there is no online offer. Down payment is 10% of the purchase amount. The only thing you need to keep in mind is that you should pay at least once a month and each month. It has to be completed within 10 months. In terms of cancellation fees, there is none.

Kmart

It is possible to get your jewelry with layaway both in-store and online. The only difference is that you cannot get everything you want online layaway sales because only selected items. Down payment is 10% of the purchase amount. If you are a member of Kmart Shop Your Way, you get a $1 discount more. 

Payments should complete within 8 weeks (online layaway) or 12 weeks (in-store layaway). Payments have to be done every 2 weeks. Cancellation fees vary. For online layaway, you need to pay $5 as a service fee and there is a $10 cancellation fee. For in-store layaway, you need to pay $10 as a service fee and there is a $20 cancellation fee.

Alternative Method of Accepting Installment Payments

Personally, I prefer not to handle all these record-keeping and installment-payment details. I’d rather accept credit cards than set up and manage a layaway plan.

Many customers can pay their credit card company in installments if they choose. And the jewelry goes from my possession to the customer’s immediately, instead of having to be set aside on hold till receiving full layaway payment at a future date.

This way, they don’t have to keep records of customers’ deposits and payments. For monitoring their payment deadlines and calling when a payment is overdue, arrange for a time and place to get their jewelry to them or find a safe place to store their jewelry till they finish buying it.

However, depending on your particular jewelry business and customers, offering layaway may be a very good option for you to consider particularly if it encourages more high-dollar sales. Just be sure to protect your own interests, make your policies clear, and have an attorney look over your layaway plan.

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