Since Target shut down it's Lay-a-way program several years ago, and Wal-Mart just recently followed, the only retail store giant (or semi-giant) that offers lay-away now is K-mart. The idea that I've cultivated is to build a business based around lay away items.

I would contract with Wal-mart/Target Stores...My company would receive the lay away orders (via scanning system like the baby/bridal shower scanning), store them in a storage/warehouse type facility, maintain customer records/payments and distribute the lay away items when customers came to pick them up locally. The stores would profit from being able to sell their products by other means, customers would benefit from being able to put items they wouldn't necessarily be able to purchase right away, on layaway, and my company would profit from the lay away fees,(non refundable)and the contract with each store. If lay away items are not purchased, customers debit/credit cards would be automatically charged a restocking fee that would go to the retailer (Walmart/Target). My company would be the sole contact regarding the merchandise. Retailer would not be involved other than providing merchandise.

Eventually this business would grow to offer the same services nationwide via online/catalog ordering.

I've just started my research on other companies that might already provide this service however I've not come across one as of yet.

I would like to find out how this idea fares and if it's even worth dilligently pursuing. I've done a great deal of research. Business owners, Venture Capitalist's and others welcome to post your suggestions/opionions. Thank you.

I think the reason behind them doing away with the layaways is because most people use credit cards now a days, so if they want it they buy it and get instant gratification of their need and then they pay for it later. Which in fact is similar to lay way, except you don't have to wait for the merchandise, you can have it now and still pay later. I don't know how well this idea will work in today's credit card age. I do a lot more research on this one. We are a society who loves to buy now and pay later!

Big ticket items, like furniture or electronics, maybe, but again most furniture stores have a lay a way of sorts,and electronic stores do offer credit cards for these reasons, so again, I would research this one a lot more.

Hmmm, very interesting concept but in theory you may have difficulty with the logistics and legalities that would be involved in the set up. Do you know why stores such as Target and WalMart have done away with there lay-away systems? How could your service be marketed to attract the likes of large corporations like these? What benefits will you be able to offer to businesses who contract with you? How will you set up operating systems and administation?

There are still many consumers that for whatever reason do not use credit cards and would prefer to use lay-away for multiple purchases and expensive one off items. Xmas season, birthday, etc are the types of lay-aways that could find use in your business idea. Many parents I know choose to lay away these items purely to keep away from prying fingers.

Start putting together a business plan that outlines all aspects of setting up a business like this and see what information you can garner by meeting with a senior manager that can give you some answers.

Good luck and i'd be interested in learning how things go.

Regards,



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