Art Acquisition Approach

[Janet L]

This has worked for us, and may work for you.

We wanted to become more consumer friendly and not intimidate customers that want original art in their homes but just can't manage to plop down the asking price. We decided to begin a 3 month payment plan. Didn't want to call it Lay-away as that sounded too WalMarty for us, so we call it the Art Acquisition Approach.

We began this about 6 weeks ago, and it has worked out wonderful! This week alone, we have sold 6 original pieces of art. Our customers are very appreciative that we are willing to work with them on a payment plan.

I'm doing the same thing with framing. If a customer loves the design, but is nervous about spending the bucks, I'll spread it over 3 months for them. Until I receive the second payment, I don't begin the work.

Being in a small town, word spreads. Having sold signs on artwork hanging on the walls is great. In smaller print under the "Sold" sign, it reads, "Ask us about our Art Acquisition Approach". (They don't really ask us, because we tell them as soon as we see a customer zoom in on a particular piece.)

[deaconsbench]

Very intelligent approach!

One other idea is to have the first payment non-refundable, and enough to fully cover materials cost - if the deal falls through, you're not out any cash flow.

[Val]

I started that in January. Works well. Haven't had a name for it though. Just "We'll accept 3 payments on that, if you'd like". I like your "Art Acquisition Approach", may I borrow (steal? copy?) that?

[DavidnNC]

What a Great idea. Being in a small NC town (other end of state) I am sure this will work. Thanks for the idea.

[Paul N]

Sounds really good.

But how do you track who did / didn't pay? And how do you handle late payments? Or non-payments??

[wpfay]

I've seen it used, and I've seen it abused...how you set it up and how you manage it is critical.
In a small town where everyone knows everyone (one degree of separation) a more casual approach probably works*.
In a more urban setting I would think that getting pre-authorization to put the payment on a charge card would be the way to go. You could even figure in a service fee for managing the account, or have your pricing set to include the inevitability with a small discount for single payment sales.

*I forgot how real small towns work until I visited my sister in Crawford, Ne. a couple weeks ago. The local grocery store accepted cash and checks only, though they did have accounts for regulars that they billed at the end of the month. You could also phone in your order and it would be waiting for you by the cashier. All bad checks were posted on a bulletin board at eye level next to the check out line. They had blank counter checks from the local banks, just in case you forgot to bring your check book.

[Richard Darling]

We do payment plans on originals as well (great name for it though). We keep the art until the payments are complete - so late payments are not a particular problem. I track it in my POS as an Invoice On Hold. That way it doesn't hit my books as a sale until the last payment is made.

[Janet L]

Glad ya'll seem to like the name. Feel free to help yourselves to it.

Richard, we handle it the same way you do. It doesn't leave our shop till it's pd. in full. We do keep the customer's credit card number on file (w/their permission) and they know that we will charge to their account if they are 10 days late in coming in w/their second payment. So far as the third payment goes, we haven't gotten there yet. Only been doing this for six weeks.