Layaway for Jewelry: 5 POS Features That Keep Customers Happy

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Layaway is a popular option for those who don’t want to pay for a high-ticket piece of jewelry upfront.

With a layaway, a customer makes a deposit and the item is set aside for them. They then make periodic payments until they’ve covered the full cost of the item and can take it home. Because some jewelry is too expensive for the average person to buy in a single payment, a layaway plan makes it possible for a wider audience to make these purchases.

As a business owner, layaway for jewelry helps you increase sales — but it also comes with a lot of logistical work. You need to keep track of what items are on layaway and how much each customer has paid towards their jewelry. Luckily, a modern jewelry store point of sale (POS) system has tools that make these tasks easier.

In this blog, we’ll discuss the benefits of offering layaway for jewelry — and explain how a POS system makes managing layaways easy. Let’s get started!

The Benefits of Offering Layaway for Jewelry Stores

Layaway may seem like a simple feature offered only for convenience, but if promoted and managed properly, it can have a significant impact on your bottom line. These are some of the biggest advantages of offering layaway for jewelry stores.

Sell More High-End Jewelry Pieces

Sometimes a customer sees a piece of jewelry they love and they want it immediately. But then they look at the price tag and think there’s no way they can afford it. They may not be able to pay for the item outright, but with layaway, they can do so over several weeks or months, making the purchase more realistic.

While jewelry is a luxury, some of these purchases are tied to memorable life moments — like engagement rings, for example. In these instances, buyers are motivated to spend more due to the significance of the jewelry. Offering layaway helps them celebrate significant milestones without the stress of how they’ll afford it— and this flexibility helps you sell more high-end pieces in the process.

Better Predict Your Cash Flow

Offering layaway also helps you create more accurate revenue forecasts. When you can easily check how many items you have on layaway, and when customers are scheduled to pay, you know what revenue to expect.

If a popular pair of earrings has been put on layaway several times, and the remaining are set to be paid off next month, you know you can expect that revenue to reorder several pairs so they stay in stock.

Layaway orders help you better manage your inventory. When you know you need to hold specific items for a certain purchase date, you can exclude them from your regular inventory count so you don’t run out of your most popular jewelry. This is especially useful during peak sales seasons, including holidays like Valentine’s Day and Christmas.

Offer an Alternative to Credit

Jewelry shoppers often make purchases with a credit card, which allows them to defer the actual payment of the amount until their next bill, or longer if they choose to pay less than the full balance. Layaway differs from credit in that the buyer doesn’t pay interest — and the seller can customize the length of the payment plan, making it a cheaper and more flexible option.

5 POS Features for Managing Jewelry Layaway

There are several considerations to make when setting up layaway for your jewelry store.

You need access to all of the customer’s information, a platform for setting up payment plans, and inventory tracking, to name a few. Let’s go over the top five features for managing jewelry layaway.

1. Digital Layaway Tracker

Look for a jewelry POS system that has a designated layaway tracker. This feature shows you a list of all items you have on layaway and records necessary customer information.

A layaway tracker should track these data points:

Customer name
Item on layaway
Amount paid
Amount remaining
Number of payments
Scheduled payment dates

Because all this information is stored in one place, you can easily plan for incoming inventory, identify which inventory to set aside, and communicate accurately with customers who have questions. Some software even supports multiple business locations so you can check layaway data for all of your stores from the same solution.

If a customer has an emerald necklace on layaway, but is confused about how much they still owe, you can quickly pull up the information and let them know what the remaining balance is. Clear communication builds trust with the customer, and if they’re aware the item is close to being paid off, they’re more likely to make early payments.

Sometimes a customer might even be upset, thinking they owed less than they did. Having a reliable digital system allows you to clearly show them a record of each of their payments and how much they still owe. To avoid these issues, draft an agreement before the first payment is made. Have the customer sign it and give them a copy they can refer back to.

2. Customized Payments

Automatically calculating payment schedules saves you time and reduces the chance of errors. A jewelry POS system with layaway features even allows you to modify these schedules if a customer pays extra or wants to extend the schedule. You can also set the amount for the deposit, and add optional service or cancellation fees.

The ability to adjust this information gives you the freedom to manage your layaways and your store’s policies the way you want.

3. Automated Email Statements

Some jewelry POS systems offer additional features for notifying customers about payments. You can set invoices to be emailed whenever a payment is due and allow a customer to pay online rather than coming into the store. This convenient option results in fewer missed payments and faster completion of layaway plans.

4. Inventory Accuracy

If you’re selling online, it can be a challenge to keep track of in-store stock, online orders, and items on layaway. But with a cloud-based POS system, you can keep all of this information consistent. Items on layaway are separated from the rest of inventory so you won’t sell out, and you’re better able to plan your future reorders.

5. Sales Commissions

Some jewelry stores incentivize individual salespeople to sell jewelry on layaway by giving them a commission on the sale. A jewelry-specific POS system allows you to track which salesperson sold each layaway and compensate them when the item is paid off by the customer. Using a digital system simplifies this process so you don’t pay the wrong employee or miscalculate the payout.

Launch Jewelry Layaway With Jewel360

Layaway is a great way for retail business owners to win over budget-conscious shoppers. This is especially true for a jewelry store, where luxury items carry a high price. To effectively offer layaway at your store, you need digital tools built for your business.

Jewel360 is a cloud-based POS solution built specifically for jewelry stores. Our software includes jewelry-specific capabilities like repair and custom work management and baked-in access to jewelry suppliers. The software also offers integrated payment processing, inventory management, and e-commerce to cover every aspect of your small business.

With Jewel360, you also have all of the layaway management functions mentioned here — including customer tracking, held inventory, and payment customization. To see what the software can do for your business, schedule a live demo today!

Layaway for Jewelry: 5 POS Features That Keep Customers Happy