Payment plans and plummeting prices...

How does a breeder/dealer handle payment plans on morphs that have a considerable price drop? Maybe this hasn't been a problem in the past, but it seems like it might be now. Say someone put 10% down on a Lesser a year ago with a price of $35K. A year later he notices the market price has dropped quite a bit.

Do most dealers renegotiate, or try to stick to the agreed price? On one hand, the buyer might end up saving money by breaking the contract, losing his deposit and any money paid, and buying it elsewhere for the current market price. On the other hand, the dealer might have received the full amount if he didn't accept a payment plan and held out for someone that could buy it outright. :confused:

Well, if you take your example, the person should have been paying off that snake for a full year, so would have a LOT more invested in it than 10%....and that snake would also be a year older at that point, making it that much more valuable than a baby.

A year long payment plan or more seems kind of long. If they put 10% down and have been paying for a year on a 35k snake, how much is left to pay?


Judy beat me to it.

3.5k + 1k a month? Thats 15.5k , only 19.5k left to buy a snake that is 1+year old, or 10-15k from a lesser known source? Assuming you could find another lesser from an equivalent source for 15k.... you are only paying 4.5k more for an older snake.

Is there a money tree somewhere???

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Originally Posted by pythonweb

Is there a money tree somewhere???

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I'll race you to it if someone knows.

I'd definitely agree with Judy on this one. By the time you've finished paying off your snake, it'll be worth more as the year plus goes by. A year, knowing that the breeder's giving the utmost care, would leave you with approximately two left before your male/female is ready for breeding season. And what does that equate to? MORE MONEY! Woohoo. I'll stop ranting.

I think that most breeders who even offer payment plans are giving you the opportunity to obtain an animal that you otherwise would not be able to, and thus shouldn't be obligated to give you an even bigger break by dropping the price dramatically on an animal they've kept, cleaned, and fed for a year, regardless of what the market is doing. Just my .02

Good points! I guess I've been seeing a lot of breeders advertise "flexible payment plans", and I didn't think of all the details. As a breeder, you probably wouldn't want to make it too flexible, either.

It shouldn't matter what has happened to the morph price in the 3, 6 or 12 months since you entered into the payment plan. The price at inception is the price you pay. Payment plans come with a premium price like credit cards come with an interest rate

I would think to that the people buying $10K+ animals are one of a couple things; people who've very carefully thought about their purchase and have planned for the expenditure who either are going to pay for the snake in full or very quickly because they made the decision to buy the animal and they want it now. A breeder selling a 10, 20, 50 thousand dollar snake isn't gonna sell it to someone they feel isn't going to pay for it or who want a "five-year" plan to pay it off.

I would think breeders would experience difficulty with lower priced sales, 5000 and under...but what do I know? =)

Me, I'd put the lesser on my AMEX and watch AMEX go nuts, hehe...("you spent HOW MUCH for a snake?!")

I know it wouldn't be any different than if you had bought it outright a year ago and raised it yourself. I was just wondering if breeders have to deal buyers trying to renegotiate or if it's just a non-issue? I know payment plans can be used as an effective marketing tool, but I wanted to know how many problems come up because of it.

I would bet you that it happens. People try to get out of payment plans all the time or try to renegotiate (this is speculation on my part). I'd like to hear from some people who have had it happen to them

Another key point here, is that people willing and able to spend $10k plus on a snake don't NEED payment plans. Us bottom feeders looking to scrounge up $2k for an albino probably utilize payment plans much more often.

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Originally Posted by elevatethis

Another key point here, is that people willing and able to spend $10k plus on a snake don't NEED payment plans. Us bottom feeders looking to scrounge up $2k for an albino probably utilize payment plans much more often.

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Bahah..I never thought of myself as a bottom feeder but I'm sure some would disagree! :)

Hey, everyone needs a reality check every now and then!

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Originally Posted by elevatethis

Another key point here, is that people willing and able to spend $10k plus on a snake don't NEED payment plans.

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Heeeey...I said that! =) But yeah, I agree...if you're gonna really spend that much, you probably have it, either already in cash or as a part of a business loan from your bank, whatever...

Bottom feeder has a really negative connotation. People serious about their purchase of a $2k albino but just a little short of available cash, a couple month payment plan sounds a great opportunity to start building your breeding collection.

Some schmuck "wants cool snakes" but disappears after the sale is final and the deposit...that's a bottom feeder. Problem buyer. =)

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Bottom feeder has a really negative connotation.

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I was just bustin' everyones nuts...including my own...

elevatethis=champion :groinkick

Seems like payment plans are best made with a lending institution. They have it all figured out.

I pay cash. If I don't have the money I don't spend it. This means no brand new cars, fancy watches or black eyed lucys in my future ;)

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Originally Posted by elevatethis

Another key point here, is that people willing and able to spend $10k plus on a snake don't NEED payment plans. Us bottom feeders looking to scrounge up $2k for an albino probably utilize payment plans much more often.

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So it logically follows that people pay cash for BMW's, and need loans for 86 Chryslers? :D. Most people DON'T have the funds to purchase a $30,000 snake outright, and some don't have the funds to purchase a $2500 snake outright.

But to answer the OP, payment plans are a method of payment. It's no different then putting it all on a credit card and expecting a refund a year later when the price drops.

This is gonna sound stupid since im new here, but damn, 35k for a snake?! wow. I guess im an underground feeder than, cause im struggling to get a set up done intime for my 40 dollar female hatchling... i hope someone gets a laugh outa this!
Anyways, i'll love her just as much as anyone.

If the payment plan is more than 6-12 months, couldnt you just wait next year for the same breeder to have a similar snake for sale (at a lower price?) and put money in savings to save up for it?

Longer payment plans dont make sense for sellers if the price on the product is going up, or for buyers if the price is going down significantly

Do people utilize payment plans mostly because they see a snake they want, and to secure it they start a payment plan and receive the snake after they've paid it off?

If someone just wanted a "male albino" and they knew 20 people who had them for sale, would they be more likely to save up for one, and get it when they can afford it, or try to start a payment plan instead?

ah the addiction is strong... very strong.

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Originally Posted by white_gorilla_x

This is gonna sound stupid since im new here, but damn, 35k for a snake?! wow. I guess im an underground feeder than, cause im struggling to get a set up done intime for my 40 dollar female hatchling... i hope someone gets a laugh outa this!
Anyways, i'll love her just as much as anyone.

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Nobody should laugh at you. Your $40.00 female is just as precious to you I'm sure as any $35K bp morph. Normal or morph they are all wonderful, exciting creatures to interact with. In the end, be it a snake you got for under $100 bucks or spent your life savings on, you'll still be cleaning up snake poop anyways LOL (not like the big buck snakes drop gold nuggets or nuthin' LOL).

As far as the question of payment plans. Just our experience with Adam at 8Ball to make comment on. We wanted a pastel and started a payment plan for one we liked. Life changed, finances changed...the purchase would have been difficult but never would we have thought to ask Adam to change his pricing once we entered into an agreed upon price. If you want a "deal" you haggle for it upfront...not after you've agreed to it and then want to change the deal. That's unfair, unrealistic and unbusinesslike. In our situation, Adam graciously helped us choose another snake that both fit our current financial situation and would also further our breeding goals.

Now that folks is the mark of a good business transaction with a good breeder, a gentleman and a smart businessman who knows how to both make his customer happy but still mind his shop so he can continue to be in business 10 years or 20 years down the road. :)

When you start a payment plan you are entering into a legally binding contract. Even if it isn't in writing, you satisfy the major components of an oral contract, agreement on price and consideration (down payment). If the market price drops before you pay it off, and you decide you don't want to pay the original price anymore and stop paying you are in breach of contract. The seller is well within his rights to not only keep your deposit and any payments made thus far, but he is also entitled to seek compensation for the full value that was agreed upon. This also protects the buyer as well. Suppose you start a payment plan on a Mojave at $5200, then someone discovers that crossing a mojave to granite produces some crazy new morph and the market price of Mojaves jumps up to $25K. The seller is still legally bound to selling you the snake according to the terms of the original contract, despite the fact that the market price is now nearly 5 times what it was at the time of the original agreement.

Excellent points made Sam! Thanks for that post :)

That Sam is a smartie pants. ;)

I do all kinds of payment plans ... some have been for 12+ months ... some even longer. The price agreed to is the price agreed to regardless of what the "market" does.

In the end, a good breeder will make sure the customer walks away happy. ;)

-adam

When would be the time that you would start a payment plan instead just saving your money at a bank.

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Originally Posted by Adam_Wysocki

That Sam is a smartie pants. ;)

I do all kinds of payment plans ... some have been for 12+ months ... some even longer. The price agreed to is the price agreed to regardless of what the "market" does.

In the end, a good breeder will make sure the customer walks away happy. ;)

-adam

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Ya know, I think he is pretty smart. Weird... :)

I'd like a 5 year payment plan on a pair of lessers please. Also could you breed them for me and send me those pretty white snakes?

Hasn't anybody ever put anything in Layaway?
I would think same rules apply since that is what your doing.

If I go to Target and a patio table and chairs for 600.00 in layaway and don't get them out for a year and by then the price has gone down say 200.00 I still owe the 600.00 that was the price when I entered the layaway


Think of it as snakes on layaway :)

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Originally Posted by jotay

Think of it as snakes on layaway :)

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Snakes on Layaway? Is that the new sequel to Snakes on a Plane? :P

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Originally Posted by xdeus

Snakes on Layaway? Is that the new sequel to Snakes on a Plane? :P

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Haha. It's a good way to think about it though...

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Originally Posted by xdeus

Snakes on Layaway? Is that the new sequel to Snakes on a Plane? :P

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Layaway always conjures up thoughts of the Kmart blue light special. I dont know why. I dont think I have ever put anything on layaway (except snakes! :) )

KMart has got to be the king of the layaways :)

For all intents and purposes you are putting them on layaway.
A payment plan is usually used for things you buy on time but yet take home w/ you. Layaway is something you put a deposit on and they hold for you until you pay it off.

Guess layaway is sortof from a different generation and I yet again am showing my age :)

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Originally Posted by Adam_Wysocki

That Sam is a smartie pants. ;)
-adam

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I am MIGHTY!
http://sam.mounts.youaremighty.com/

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Originally Posted by Gecko Den

I am MIGHTY!
http://sam.mounts.youaremighty.com/

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Umm..There was one thing missing...

"You can steal away 2 minutes of my life that I can never get back!"

You ARE a superhero!

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Originally Posted by Gecko Den

I am MIGHTY!
http://sam.mounts.youaremighty.com/

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Too Funny!!!!!

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Originally Posted by Gecko Den

I am MIGHTY!
http://sam.mounts.youaremighty.com/

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LMFAO!!

you should ask Adam about this one.......

If I where a breeder selling offspring I would offer consideration for "cash" upfront transactions. This would allow the buyer to justify the interest associated with a tradition loan or credit card. This seems like it would be a way for the buyer to have the snake right away and avoid complication. This would allow the seller to collect the funds right away and free up space/time. That would be worth ~10% to me if I where a seller. Just some random thoughts.

ok Chris......when you finally get ivories, I'll give you $500, take the snake, and then move far away and and change my name.......he heh..:P :P :P
LOL!!! I would never do that to you....;) :hug: ...but there are some people who would......

Payment plans are a staple these days with snake prices being where they are at. Not everyone can drop $500-$1000 or $5000+ for a snake and not everyone can or wants to place it on a credit card and pay 8%-23% depending on their credit.

Sellers need to be flexible and understand their target buyers and their situations. Most payment plans that are used seem to be in a certain price range, breeders/buyers trying to take that next step within $1000-$10,000.

I assume most guys dropping $20,000-$30,000 on snakes, have it or have access to it one way or another. If they decide to get on a payment plan, it's because they have a plan for it tomorrow and want the 0% interest.

IMO..

Lol..when I finally produce Ivories(a bazzzilion years from now) you will have over paid at $500..haha!!

take that scammie mcscammerson :P