Use Layaway Promotions to Overcome Holiday Price Haggling
When the recession hit, large retailers began offering more layaway promotions. Customers had become more price-conscious, and layaway made large purchases more justifiable in people's minds.
We decided to capitalize on that awareness. Starting two years ago, we did a big coupon mailing in September and October, long before the holidays. The coupon could be used to layaway a product, as long as customers paid by Dec. 25.
The coupon made customers contractually obligated to buy the product and also gave them a larger percentage off their purchases, depending on how much they spent. We sweetened the deal by making the purchase interest-free.
We then stacked the purchases at a layaway section near the front counter. As the holidays approached, it turned into a mountain of products—a silent salesman that became a big talking point with in-store customers.
The promotion made it much easier to close deals. Again, there's a psychological aspect to layaway that makes it easier to justify a big purchase in people's minds. This resulted in significantly less price negotiating.
And, of course, we sold a lot more product because of the promotion.