PDA

View Full Version : Layaway



hrgiger
07-26-2003, 05:35 PM
Here's one that's not really related to the development of Lightwave but is still relevant.

While I feel that $495 is a perfectly reasonable price to pay for a major upgrade, I don't always have $500 laying around that I don't know what to do with. How about some sort of layaway or payment plan to pay for an upgrade over the course of a few to several months?

Just a thought I was having since I'm not scheming on how I'm going to pay for my upgrade this fall.

Psyhke
07-26-2003, 05:48 PM
Credit card. ;)

robewil
07-26-2003, 07:20 PM
Ask yourself "Would I perform the same service to my customers?"

From my experiences, this would open a whole can of worms for Newtek. This is because, inevitably, a certain percentage of customers won't pay the remaining balance. Newtek would then be forced to use resources to obtain their money. This would not be good for anybody.

TyVole
07-26-2003, 07:55 PM
Actually, in a true layaway plan, you don't get the product until it's fully paid. So, if someone doesn't pay the balance, it's just money in Newtek's pocket.

I think it's a good idea.

robewil
07-26-2003, 08:06 PM
You're right, but I don't think that's what hrgiger meant.

takkun
07-26-2003, 11:17 PM
Credit card, dude. Problem solved. :)

hrgiger
07-27-2003, 12:45 AM
Um, credit cards suck. I've had enough of those.

But I do actually think a layaway plan would be nice meaning you don't get the software until it's paid for, it just gives you an opportunity to pay it over time instead of all at once.

cgolchert
07-27-2003, 04:29 AM
Isn't that what a bank is for? Put your money in one of those and when you have enough buy the software. This way NewTek or any other company wouldn't have to open themselves up to problems that layaway would cause.

It isn't like Lightwave is a shirt or a lawnmover that someone else will buy the last one.

hrgiger
07-27-2003, 10:20 AM
By saying that 'isn't that what a bank is for' would indicate that nobody should have a layaway plan. Some stores offer it to provide another facet to their customer service department. It's easier to start paying for an item when you don't have the money sitting around to use for something else. It's not about it being the last item or saving it so nobody else buys it. If the software wasn't paid for fully, it wouldn't be shipped. I don't see in that way how it would cause problems for Newtek other then their accounting department is probably not currently setup to take those kinds of orders.

It was just a thought.

cgolchert
07-27-2003, 11:37 AM
Originally posted by hrgiger
By saying that 'isn't that what a bank is for' would indicate that nobody should have a layaway plan.

That is why I posted the "It isn't like Lightwave is a shirt or a lawnmover that someone else will buy the last one."


It's not about it being the last item or saving it so nobody else buys it. If the software wasn't paid for fully, it wouldn't be shipped.

And why would you need to pay a company a little bit for software that you can't have yet. I'm not seeing the point of that with software. Don't read into this that I'm calling you stupid for suggesting it. I just don't see the point.


I don't see in that way how it would cause problems for Newtek other then their accounting department is probably not currently setup to take those kinds of orders.

Besides the fact that you are haing them hold your money without really giving you anything in return. Look at all the flak the LW8/DFX+ offer got from people. They where mobbing the forums because they were buying an upgrade that was 4-6 months away. The compositing package was a "freebie." Say you did some layaway with company X. Heaven forbid they took a monster hit and went under, had finantial problems and had to user your layaway money, whatever. Then you decide to get your money back and buy Maya, Poser or XSI instead. I just see way too many potential problems and liability for a software company to offer layaway.

hrgiger
07-27-2003, 02:18 PM
Probably true and not trying to argue with you cgolgchert.

Liability though doesn't stop other companies from offering financing of different sorts. To each his own.

cgolchert
07-27-2003, 03:17 PM
not trying to argue with you

Here either. Just wanted to play the other side as to why it isn't offered as much as stores do.

takkun
07-27-2003, 03:57 PM
Um, credit cards suck. I've had enough of those. Using credit card's correctly builds good credit, you need good credit to buy a car or a house.

No offense but the only company I know that offers layaway is Kmart.

cgolchert
07-27-2003, 06:46 PM
A lot of department stores do.

TyVole
07-27-2003, 06:58 PM
Credit cards bad -- credit cards hurt you.

Paying for something with a credit card when you can't pay it off immediately does not help build your credit rating -- it hurts it. If you don't believe me, ask one of the three credit reporting agencies.

hrgiger
07-27-2003, 10:15 PM
Well, I'm not sure about that. My credit cards seemed to have raised my credit rating to phenomonal heights (good) but have gotten me in trouble as far as debt to income ratio (bad).

Kohl's offers layaway as well as Lazurus. I'm sure there are many others. Besides, I don't see anything wrong with doing something Kmart does unless of course it involves Martha Stewart.

takkun
07-28-2003, 01:04 AM
TyVole, I have two credit cards and I charge everything to them, I hardly ever pay in full but I always pay on time and I have very good credit, I even just applied for a car loan and was approved which is amazing considering how young I am. I've read everything there is on improving or establishing credit and I've never read that you must pay off your balance each grace period to improve your credit. I did a quick search on google and here's a quote from CreditIQ.com (http://www.creditiq.com/establishcredit.asp):
You should always pay at least the minimum amount due every month. It is even better for your credit history to pay monthly payments due rather than paying off the entire balance monthly. This shows the creditor that you can handle your responsibilities and are willing to repay your debt. The worst thing you can do is not pay your bills, this will damage your credit rating in a very short time. I'm sure I could find many more examples but that would be a waste of time.

Hrgiger, maybe you should email Safe Harbor, they're the #1 reseller of Lightwave and might consider adding a lawaway option (but that all depends on what sort of POS software they use and how customizable it is)

TyVole
07-28-2003, 05:45 AM
takkun, almost anyone can get a car loan in this economy, even a college graduate with no credit history.

The Web site you quoted from is run by a company offering credit products, hardly an objective source.

hrgiger
07-28-2003, 10:05 AM
Tyvole, yes a lot of people in this current economy can qualify for a car loan but if your credit is bad, you won't qualify to receive a good interest rate on your loan.

And it is true it is better for your credit rating to carry a balance unfortunately on your cards. Payment history helps your credit score, not paying off your balances. If you don't have anything on your credit cards or other accounts, there's nothing there to report to credit agencies.

Dangerman
07-30-2003, 03:41 PM
The current upgrade offer works much like layawy, you pay your money in advance for a product that won't ship for months. This puts revenue into NT's pockets during the low revenue period.

A layaway plan would help NT in two ways:
1) Revenue during low revenue periods.
2) Impulse buying from people who wouldn't or couldn't buy otherwise.

Typical layaway plans have two features to help the provider.
1) No (or limited) money back if you change your mind later.
2) A time period over which you pay in full, or lose your money.

I can see this as a boon to sales with just a little accounting setup as the expense.

I bought my first Commodore this way, and it changed my life!

prospector
07-30-2003, 09:34 PM
The three greatest markiting ploys ever devised
are..

Layaway
Creditcards
Insurance
and my tip of the hat goes to those who devised it.

layaway was developed so you DON'T put your money in the banks where you could change your mind about buying somethig and end up not getting it, and give the money to the store where it collects no intrest for you, and makes millions for them from all the layaways around the country, but ties it up with them so you decide not to get it back but buy the product.

excellent idea

Credit Cards. if you pay early or pay late your credit is actually hurt because the financial institution dosn't make as much money, but pay your monthly bill as put in contract, you get really good credit, the banks make huge sums of money, but you end up paying 3 or more times the original cost. Check the total price paid for a car or house bought over time counting all charges for full term.

great scaming idea..love it

insurance..probably the best ploy of all time
this one is just about a perfect money maker

when you buy insurance you are in essence betting the insurance company that you will die before the policy is up and they are betting you don't. Or you are betting you get into a car accident before the 6 month or 1 year policy is up. They bet you don't.

why ??

because the only way to collect is if you win
either die, car accident, house fire, flood, for home insurance

And if you DON'T win..then ya make another bet when the current policy is up.

this is just magnificent

wish I could think of something like them..