I just found out Saturday that Hick is allowing LAY-A-WAY service at his SUS2 (Storage Unit Store 2). He mentioned how a lady came in, and he asked if she was there to make a payment, and she said no, that she was there to tell him she couldn't make the payment.
"Wait! You have LAY-A-WAY?"
"Yeah. They can make payments, and get their item when it's paid off."
"So what if they don't make the payments? You give their money back?"
"No. I keep it."
"That doesn't seem fair! They can't afford to make the payment, which means they don't have enough money. So they obviously need the money they have paid you."
"Not my fault. They have 90 days to pay it off. If they don't, they know they forfeit the money they have paid in."
"I don't like that. I mean, I know you are holding their item, which prevents you from selling it to a buyer who has the money right there. But if they don't pay, you still have your item. And they need their money. I'd give it back."
"They know when they put it on lay-a-way that they have 90 days to pay it off. Or they forfeit the money they have paid on it."
I guess that's how lay-a-way works. I've never used it. But it seems like taking advantage of people with a limited income. I'm kind of disappointed in Hick for using this tactic. I guess that's how business works. You can't let feelings get in the way of profits.
I don't think I ever used Lay-a-Way but I remember it being an option at a K-Mart I shopped at when I was much younger:) I always thought it was neat to be able to pay for an item ahead of time if you were shopping for Christmas gifts. I never thought about what happened if you couldn't finish paying for the item.
ReplyDeleteI remember as a kid, seeing the lay-a-way window at the back of Walmart. The old Walmart, before SuperCenters were even an idea. I don't know if they kept the money or how it worked. I didn't know anyone who used lay-a-way. It does make sense to have an item saved for you, and make payments ahead of time, rather than on credit afterwards, accruing interest.
DeleteLay-a-Way works differently according to the store. Perhaps Hick could charge a "re-stock fee" and keep a percentage of the money to compensate him for not being able to offer the item for sale. I feel like you do. If they never show up to get a refund, then I would say Hick keeps the money, it shouldn't be up to him to follow up. I feel very wise right now .... I am old, I know stuff. At least my grandson says so!
ReplyDeleteI agree. If they never show up, they forfeit their money. But if they come and say they can't pay, then they should get their money back, less a specified percentage. Otherwise, I think it's taking advantage of people who are having hard times. Maybe Hick hasn't thought of this option. I will suggest it.
DeleteHick is right, that is how business works. I used lay away many times when the kids were little, it's called lay-by here and I would use the system for school clothes and Christmas and Birthday gifts. I originally began just laying away cash in the house, but hubby would find it and buy beer, so I switched to the store system.
ReplyDeleteThat was a smart move to outsmart him! I still think keeping all the paid-in money is unfair.
DeleteI agree with Kathy, if the person never shows uo, they forfeit, but if they can't pay perhaps an extension of time could be allowed. A store would do that if the person agreed to make smaller payments for a longer time (well they used to) and Hick could make that arrangement too.
DeleteThat's another good idea that I will mention to Hick.
DeleteHe should return the money less his 50 cent profit.
ReplyDeleteYes. Because Hick can still make ANOTHER 50-cent profit!
Delete