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View Full Version : Pre Pays done!!!!


RABBITMAN11
12-27-2010, 08:51 PM
Pre pays done going out tomorrow. Increased some 2% and some 3%. Im not going to be caught with my pants down. Fert is going up so Im passing it on..

a plus bob
12-27-2010, 08:56 PM
Pre pays done going out tomorrow. Increased some 2% and some 3%. Im not going to be caught with my pants down. Fert is going up so Im passing it on..

Mine go out this week at 3% across the board.

lawntennis
12-27-2010, 09:55 PM
doing mine as I type. $1 up to 50, $2 to 50-100, $3 and up over 100. I added there would be a fuel surcharge if gas is over $4.00 but they would have to worry about that if they prepaid.

LawnTamer
12-27-2010, 10:04 PM
Just out of curiosity, what have ya'll set as the due date for prepays? I want mine in ASAP, so I can use the #s to gauge my renewal rate, and to buy fert, fix equipment, make my Feb house payment etc. But I always worry about having the due date too close after Christmas. I usually set it somewhere in mid to late Feb.

lawntennis
12-27-2010, 10:26 PM
MIne is Feb 20th. It is tough getting it out when everybody is paying bills from Christmas.

fireman gus
12-27-2010, 11:04 PM
Would someone please explain to me how prepay works and do you send them out to every client?

RABBITMAN11
12-27-2010, 11:15 PM
Would someone please explain to me how prepay works and do you send them out to every client?

Pre pays are out to all my customers except a handful. We give a 8% discount for prepaying. Are prepays are due Mar 1st....

LawnTamer
12-28-2010, 01:14 AM
We do a 6% discount, plus we always add some kind of coupon, like $20 a foundation bug spray if they prepay by the due date. Part of me thinks we should just eliminate the pay-as-you-go clients, and be strictly a prepay only, package deal kind of service. It sure is nice only having to send out that invoice once/year. We offer a fall and a spring prepay deal, the fall deal is always a little sweeter, both get the 6% off, but the people who prepay in the fall get a slightly better coupon. By doing this, we are able to get between 67-71% of our clients to prepay. There may be some lost profit there, because of the discount, but they are locked in, they never cancel, they never pay late requiring us to send out multiple invoices or add unpopular late fees.

If I could, I would gladly have every one of my clients prepay... heck, I have a couple grand that I end up writing off every year, people who run up a bill, and declare bankruptcy, or move etc, that coupled with my collection time and expenses for the late payers would make up for the 6%. Not to mention the fact that my prepayers usually buy more add on services, like bug sprays, fungus control, shrub, tree and foundation sprays etc.

lawntennis
12-28-2010, 11:32 AM
Lawn Tamer 70% is impressive. We get around 30%. We onlly offer a 5% discount. Maybe a coupon would make a difference.

greenbaylawns
12-28-2010, 02:56 PM
We have a 5% discount and pre pays due by March 15. We try to start between April 1st through the 15th.

mikesturf
12-28-2010, 03:17 PM
I give no pre pay discounts. I require half the years payment before I start, then the final payment in the fall. I send out contracts in mid January. I receive everyones check and signed contracts by the end of Feb. Much less paperwork than billing at the end of each treatment.

Turfdoctor1
12-28-2010, 04:25 PM
To those of you that send prepay letters before year's end...What year do you report the income?

We wait until Jan 1 to send our prepay letters, because I don't want to claim the income for the following year on this year's taxes. that doesn't make sense to me.

Plus, we send Christmas cards with family pictures in mid December. helps them remember they are working with real people. That seems to help with prepay response a couple weeks later.

fl-landscapes
12-28-2010, 04:34 PM
To those of you that send prepay letters before year's end...What year do you report the income?

We wait until Jan 1 to send our prepay letters, because I don't want to claim the income for the following year on this year's taxes. that doesn't make sense to me.

Plus, we send Christmas cards with family pictures in mid December. helps them remember they are working with real people. That seems to help with prepay response a couple weeks later.

depends on how you are set up with the irs, its either "cash" or "acrual" or something like that. Basically one way you get taxed when you create an invoice the other your taxed when the invoice is paid.

Turfdoctor1
12-28-2010, 04:44 PM
either way, if you take payment for 2011 before the end of 2010, you pay tax in 2010. right? If you send letters, and they pay, you would have to have an invoice for that. So, that would be both invoiced and payment received in prior year.

that just doesn't work for me.

fl-landscapes
12-28-2010, 05:09 PM
either way, if you take payment for 2011 before the end of 2010, you pay tax in 2010. right? If you send letters, and they pay, you would have to have an invoice for that. So, that would be both invoiced and payment received in prior year.

that just doesn't work for me.



hold the checks and record / deposit them after the first of the year. Companies do it all the time.

americanlawn
12-28-2010, 07:12 PM
Exact same here RABIITMAN11. We mailed ours out this afternoon. 8% discount for 5 apps. 4% discount for 4 apps. Prepayment deadline = March 1st. 3 apps or less = no discount, but some of those prepay just to get it out of the way. (we used to offer 10%/5% discounts, but not any more)

Anybody notice to cost of fuel rising lately??? cuz that's our main concern rscvp, thanx

Pre pays are out to all my customers except a handful. We give a 8% discount for prepaying. Are prepays are due Mar 1st....

DA Quality Lawn & YS
12-29-2010, 02:48 PM
I do 5% discount for prepays. I only do for 4 or 5 Step programs, not the single app type people. I will send out early February. I just cannot imagine sending out prepays now, I would just not get any response so close to the holidays.

ted putnam
12-29-2010, 03:45 PM
I do 5% discount for prepays. I only do for 4 or 5 Step programs, not the single app type people. I will send out early February. I just cannot imagine sending out prepays now, I would just not get any response so close to the holidays.

I thought the same. I normally time mine to hit mailboxes on Jan 1. This year I sent them out last Monday because I wanted to do some Deer hunting right after Christmas. I really didn't expect anything until after the 1st. I got the first "wave" today, about $1500. I give them until Jan 31 to pay and receive the discount but I actually will give it to folks who for whatever reason miss the deadline. I start my first app toward the end of Jan so I start sooner than you but I really don't think the holidays are going to make that big of a difference to some who plan to prepay anyway. JMO...I may do it this way from now on :)

Turfdoctor, I "sandbag" payments just like fl-landscapes suggested. There's no law that says you have to deposit them the day you get them, at least not that I know of.

Lefet
12-29-2010, 04:29 PM
Would anyone care to share how they word their cover letter for their prepays?

n-green
12-30-2010, 10:13 AM
It's a prepaid liability, no tax until it is earned. That's my story and i'm stickin to it!

kevin16856
12-30-2010, 10:25 AM
These pre-pays are done on your Fertilization Programs, and not your total service?

grassguy_
12-31-2010, 11:43 PM
our first prepay letters go out in mid to late November and a number of customers will prepay as a christmas gift to the spouse. we'll mail another in early January with any adjustments for price increases. this usually gets the poeple to hurry and mail the first letter back seeing that their prices may have gone up with material prices. returns over the holidays have never been to slow for prepayments. it may be due to the fact alot of poeple get year end bonuses or extra cash from the holidays they didnt spend on gifts.