LayAway For eCommerce In A Depressed Economy?

OK. I'm going to ask for your forgiveness in advance for indulging me...

While many sellers are selling regularly, many are not. Let's set aside some reasons that only a seller would be responsible for (for not getting regular sales):

1. Priced too high for today's economy. Face it folks... your item is only worth what someone is either willing to pay for it or can afford to pay for it. When given a choice between that Prada Handbag you've been jonesing for or groceries, most people are picking groceries right now... unless they have the teeth and digestive track that would make eating the purse possible...

2. Shipping. We all know shipping prices suck. There. I've said it. Now don't get your sensibilities all out of whack because I used a semi-cuss word. I'm just saying what everyone, even the most conservative person, is thinking. That said, I've looked at a pretty nice amount of listings, and I hate to say it, but the shipping prices here are, in too many listings, is no better than what the gougers are charging elsewhere because they're paying fees to list and/or sell. When gas prices went up, so did peoples shipping... but when gas prices came down, did you lower your s/h accordingly? Of course not!!! When you tack on your 'handling' fee, is it more than a few cents (cents... not dollars... cents)? In your listing, do you describe what your 'handling fee' covers? When you add 'packaging' to that 'handling' fee, are you charging the customer for your time or just the cost of packaging? Are you taking advantage of free supplies from the post office (which most buyers know about)? Are you printing your own postage so that you get the Delivery Confirmation number and service for free (most buyers know about this too)? Or are you charging your customer for new packaging but sending used boxes, recycled peanuts, second hand bubble envelopes, etc.? I'm all for recycling... but I don't charge for what I didn't have to pay for in the first place... do you?

3. SEO/RSS. Not even eBay is providing the same Google exposure they were a year ago. All successful sellers, regardless of where they sell, will tell you that they do some of their own feeding, whether it be feeding listings directly themselves (putting their listings directly into Google, or Oodle, or Ask, etc.), or using web submission sites (like websubmission.com, hotfrog.com, etc.), blogs (like wordpress, blogspot, or other sites where blogging is acceptable and encouraged, like SellersArena, or even participating in chats here and/or at whatever venue you sell at). The days of listing it being the sole thing you do for sales is over. It's just the way it is...

OK. So let's say you're doing everything right and still aren't selling. It's probably because even at a lower than value price, it's still too expensive right now. Let's use OLA Seller LFWoodworking for an example (I hope you don't mind Rick!!!). Rick makes and sells beautiful wood art. Stunning stuff. An average piece SHOULD be selling, in a normal economy, for about $75 a piece plus shipping. LFWoodworking has those pieces currently priced at an average of $25 each plus $9.25 Priority shipping. His product is priced very low for what it is and should be selling... but again, when given the choice of how to spend $35, most people are buying groceries not pretties, no matter how well priced (ok Rick, I'm done... lol...).

I got to thinking... and we know how 'outside the box' I can be... and here is my idea of a solution for items that folks would love to have if it weren't that they've got to come up with a lump sum (no matter that it's only $20 or $30... it's still a pretty large lump to many right now).

LAYAWAY!!!

It wouldn't actually be that difficult to do or to incorporate into your listings, whether Fixed Price or Classic Auctions. Sure, you'd need to keep some sort of record (both Buyer AND Seller), but it wouldn't take more than a few minutes a week, even if you do it by hand.
Here is an example:
OK. Let's say I have a ring for sale for a fixed price of $200.00. Not many could afford it right now, right? BUT let's say I add to my auction a payment plan... say a 60 day payment plan, which works out to be 4 payments of $50... or 8 payments of $25... however you'd want to work it out with your customer. Shoot, add 2 or 3 payment plans!

I hate to do it Rick, but I'm going to use you again... lol... OK... let's say someone wants one of your Man's Best Friend wood plaques... let's use this one: http://www.onlineauction.com/index.php?page=auction:view_item&auction_id=940567&title=Wolf_Silohette_Solid_Oak_Hand_scroll_sawn_Wall_Art_Plaque . OK, it's $27.00 plus $9.25 Priority Mail shipping. The price for the plaque is way low for what this item is worth. The shipping cost is more than fair, probably lower than the actual postage will actually run. BUT where $40 at one time might be too much for someone to handle, $10 a week would probably be do-able!!!
So figure you do 7 layaways, that would be $70 a week coming in... which would would be the same as selling about 2 a week...

As far as lisings goi, you could simply add "Ask Me About Layaway Plans" to your listings... Me, I'd actually put 1 or 2 plans in the listing, maybe something like:

LAYAWAY PLANS
Option 1: $10 a weekOption 2: $20 a PaydayLayaway Plans are for your convenience. All sales are final, which means once you purchase this item, you will be expected to make the agreed upon payments. My regular refund policy will be in effect for the item, but no refunds will be given for the layaway. For example: If you decide you no longer want to pay for the item, regardless of reason, any monies placed towards the Layaway would be considered non-refundable. If you pay off the item, and it is damaged when it arrives, the regular refund policy would take effect.

I know there are other things to consider before you would impliment this idea (what if someone misses a payment, etc.), but that is something you'd work out for yourself, with your own policy. I'm just putting the IDEA out there.

What do you think?