Web Podcast - Episode 24: How to Boost Website Sales

Read the transcription of this podcast:

Hey guys, welcome to episode 24. Im speaking to you about Laybuy. I'm thinking you've heard of Laybuy's before, but its not the conventional Laybuy Im talking about here. It's a different format today. You've possibly used it, or know people that have.

What's the concept here. Im talking about Laybuy, in sense that its not the old way, where you pay dollars off here and there, or $100 there and then you get the item once its all paid off.

This one is beneficial to the person buying the product. I can get my television straight away, I can get my guitar straight away, I can get a new fridge straight away, I don't have to wait. I can just decide to buy it today and pay it off in chunks over time.

At the end of the day I can take the item and pay it off after time, rather than paying it off first before I get it. It makes me a happy buyer and influences me to buy straight away, rather than thinking I have to wait as I only have $500 if the item is $2,000. It's the other way round, I can get it even if I only have $500.

Usually these Laybuy things are split into set payments over four to six payments. Lets say its $1,000. You'll pay four lots of $250, that will be over a four month period, or three month period.

That's the benefit of it. I can buy it today, I've got $500 in my account, “I can buy it today and I have my first payments for the next two months.” I'm pretty sweet. Rather than, “I can put $500 down today, but I still have another 500 to pay off, that's gonna take a month, I can't be bothered.”

It's really beneficial to the merchant. He can get people buying the products now, they're getting paid still, they're going to get the products.

I've had people ask what happens if they don't pay the item, or doesn't pay the Laybuy fees. Most the Laybuy providers you've come across, will take on all risk and liability of those funds. If there's non-payment, if Joe Bloggs can't pay next month because he's forgotten his power bill, then youre not to blame, youre not to cough up the money. You don't have to pay it back as its all covered. Once you sell the item, you are paid, the customer gets the product. It's all done and dusted.

That's where this is a great way to go. I think every website with relatively high ticket items should be utilising it. When I say high ticket items, Im talking about $100 plus. If not less though. If you think about it, people will buy a few items. If you're a clothing store you may have shoes for $50, a dress for $150, you may have a suit for $500. If you're working in anything above $50 its a good way to do it. If your selling 5 cent lollies, if anybody needs Laybuy on a 5 cent lolly, they're in trouble. You shouldn't really have to worry about Laybuy in that sense.

Anything high ticket, high cost items, that people can't afford to pay upfront, then it's a great way to go.

The benefits are that it makes it easy for people to buy on your site. They can just buy it and the payments start coming out through the Laybuy provider, not you, you don't have to worry about it. You still get paid. It's just a great way to do it.

Compared to the original Laybuy method where you'd hold the items aside, you can get the item out the door, order a new one for the shelf so that if someone wants to pay cash for it, youll have stock to give away rather than having an item sat on the shelf that's only had $50 paid towards it and it's a $500 item. You won't be stuck wondering if you should sell it to this new person who has the cash. You don't have to worry about that because you're getting paid within the first 24-48 hours of that order going through. It's no risk to you.

There's lots of providers that offer the service. You'll need to shop around to see which one fits best. Thats why Im not recommending one specifically. I say most of them don't have any payment, you're not at liability for non-payment, but I may be wrong. Check, and make sure that they do what I've told you. Also, make sure they have good payment terms and that the interest rates aren't too high.

The only fee you're paying i a small percentage. People may think I'm saying people can buy what they want, and you’ll get paid straight away, yes, it's that easy for you to boost your sales. There is one trade off, its a percentage of the sale. Generally you're looking at the 2-4% mark.

If you sell a $1,000 television, you'll pay a $30 surcharge. You sell a $500 XBox, you'll pay a $25 surcharge.

There's a price to pay, but think about it, you can either sit there and pay a credit card fee of 3%, or I could have someone buy something on Laybuy and they can buy iy easily, they are more inclined to buy it as they don't have to pay upfront. You’re paying the same surcharge as a Mastercard or Visa transaction anyway.

That's the only cost, it's not a thing to worry about. It's well worth the expense.

If you guys look up big name companies around, like here in New Zealand, there's a lot of companies using this feature already. These are big companies with millions of dollars of sales. If they are doing it then you can pretty much be sure its a good way to go.

Look that up guys, have a search around. We've done it for a few clients already, its been successful and it's a great way to market your business. You can put it on your ads, “We do Laybuy, get your items today!”

That's Laybuy guys, it’s something I was excited to talk to you about. Consider it.

Like and subscribe guys, I hope you're enjoying the podcast. Stay tuned for more.

Cheers.