View Full Version : Pre-Paid
01-05-2007, 02:34 PM
Anyone have experience with prepays and how decent they are as a marketing campaign? I am toying with the idea and wondering how much of a discount to give, include spring and fall cleanups on the estimates, and how well this caters to either homeowners or commercial managment accounts? Anyone who has some advice on anything would be helpful as well as how many mows to estimate, etc or anything else I excluded. Also maybe include one pruning in the spring?
01-05-2007, 03:46 PM
This is just an opinion:
There is a very small market of people who are willing to write one big check to a lawn company before a single blade of grass has been cut. Some people will, but I think that as an advertising method, you'll be mass marketing a program that less than 1% of people will actually use, if you get a response, and if they buy your service. I think that an average mailing gets about a 2% response, and the number of those people who will be willing to give a complete stranger a large check will be small.
I think it may work on existing customers who know and trust your work. However, why offer discounts to someone who is already happy and pays their bills in full?
I only used pre-pay once for a customer who just "could not" get his bills paid on time. I would have to make phone calls, knock on his door, and even send nasty letters. I knew he was good for it, but I just didn't have the time to play collection agent. So, I told him he could pay up front one big check. Then, each month, instead of sending an invoice it would be a "statement of account" showing his:
amount paid in-current monthly charges=remaining blance. That way he could replenish his account (and pre-pay his services) in whatever increments he wanted. And, the agreement was that when your account reaches 0, I stop working until you replenish your account. The customer was very happy, and didn't have to send in monthly bills. I was happy becuase I was pre-paid. No discounts were given though, even though he asked for them. I made his life simpler, and guaranteed myself payment for my services.
01-05-2007, 06:04 PM
I use a pre pay for snow...but not for lawn
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