EdgeChem introduces layaway plan for Xmas
Tameka Gordon, Business Reporter
Local automotive and decorative paint manufacturer, EdgeChem Jamaica Limited, is hoping its newly launched Christmas layaway plan will lead to a major spike in its revenue for the traditional high shopping period.
The company will begin offering its layaway option to customers on October 1, with a further five per cent discount on all purchases made through the programme.
"Sometimes, because of what they want, it is not affordable to do it one time, so we decided to offer them the layaway so they could pay in instalments," said EdgeChem Marketing Manager Lisa Andrade-Thompson.
Layaway on all products
It's the first time that the company is testing this sales technique.
The layaway plan covers all products offered by the company, said Andrade-Thompson.
"It would have encouraged them to actually do the purchase and then they would still be able to enjoy the Christmas," she said.
Customers will be required to make a minimum deposit of $1,000 on their purchases, then follow through with regular payments, but will collect the goods only after the final instalment is paid.
The layaway service will only be offered through EdgeChem's three warehouse locations, its advertisement states.
"Pretty much because of how the economy is set up right now, it being a challenge just to purchase things that you need, people may forfeit making certain purchases because of higher priorities like food (and) light bill," said Andrade-Thompson.
The layaway plan is therefore designed to tap the cash-strapped and budget-conscious consumer.
"The thing with Christmas is that people overextend themselves. Even though some companies may offer a bonus to their employees, not everybody gets that. But what will happen is that even though they get a bonus, they overextend and then by January they don't have anything left," she said.
Weekly wage earners will have more instalment windows than persons who are paid monthly.
EdgeChem expects "a major spike in revenue" from the layaway plan "mainly because of how the economy is set up now," Andrade-Thompson said.
"Since putting the advertisement out, we have received a lot of queries from customers wanting to sign up, so we know it's going to create a great impact," she said.