Layaway Policies

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maureen

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exton, pa
What is your shops layaway policy on framed art.
We offer layaway on original art (with the consent of the artist) depending on the price of the framed art the terms vary. I had a customer put a deposit on an original watercolor, but months later after many calls she has not come back to pay the balance and pick up her item. I am returning her deposit via credting her Amex. Do any of you charge a fee for someone defaulting on their agreement. I am mad because I could have sold the painting several times. I just recently sold it so nothing is lost, but what is wrong with people that they can find the time aren't we as busy as they are.
 
We have a pretty loose layaway policy. We try to work with a customers time frame, depending on the cost of the piece and how well we know the client. However, we have written up contracts in the past and are in the process of coming up with a standard layaway contract in case we come across the problem you mentioned. Basically, layaway is free if the item is paid by the terms agreed upon (generally 1-4 months). However, 10% of the total price will be non-refundable should a customer change their minds or miss too many payments. The big question I have right now is, how many payments should a customer be allowed to miss (without making contact with the gallery) before we refund their $$, minus the 10%?
 
I have to say that some of the most loyal customers in terms of paying off a layaway in a timely manner are the single working mothers who bring in a 16x20 portrait of their baby son/daughter for framing and simply can't afford to pay off their bill in one fell swoop. I guess this doesn't technically qualify as a "layaway" but the payments are the same and the responsibility is the same to take care of one's obligations. These ladies will stop in every Friday and put $20.00 or $30.00 on their bill until it is paid in full and they can pick up their framed photo of the most cherished little human being in their lives. I would NEVER restrict any of these mothers from having framing done on their terms of payment as long as it was a reasonable term of time.

The very WORST are the most affluent, not because they can't afford the work, but they don't have the time to drop in on their way to the country club to pick up their work and pay the balance owed. I have had customers who I see drive past my gallery every day and wait for 2 months to come in and pick up framing.

I have had 3 customers lay away prints and afterwards decided to not have them framed or purchase them. In every case I refunded their money in full and kept them as a customer. I can't afford to lose customers for the sake of some little petty inconvenience in the way I feel my business should flow along.

Framerguy
 
Our layaway policy is 3 months to pay it off. 1/3 down..1/3 next month...1/3 the last month. We dont have many layaways..but when we do, the customer has always been good about paying it off. We dont really enforce the 3 payments. We tend to be pretty lax about it. As long as they are making the effort to make monthly payments..we're easy. So far, so good.
Kirsty
 
Our policy is 1/3 down and the balance has to be paid within 60 days after that. Most people will call or stop by if they are going to have a problem with making a payment and we work with them.

As for items that people do not pick up or items that people decide they no longer want, the payments are non-refundable, but can be used as store credit if they request their money back.

Have not had a problem with this policy and most people who decide they don't want the product usually never come back anyway.
 
Layaway, we call it Layby.
This policy extends to all the products we carry in store.
Deposit of 10% (minimum $10)
Period of 8 weeks from initial deposit, non-specific payment dates. After 8 weeks we have a two week "grace" period, after this the Layby is cancelled.
Cancellation fee of 5% of total sale (minimum $10)
As with any policy this needs to be followed and enforced well, software is the best solution for tracking such information.

Lance
 
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