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  #11  
Old 01-31-2012, 05:34 AM
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JimLewis JimLewis is offline
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One other bit of advice - if you do pre-pays - don't let them pay by credit card. Credit card charges vary depending on the type of credit card the customer pays with (e.g. regular Visa vs. Rewards Visa). But on average it's around 3%. So if you are already giving 10% and then you take their payment by credit card, you might as well be giving them 13% off! Now you're really starting to give away your profits.

Explain to your customers that to qualify for the full pre-pay discount, it needs to be paid by check. They will do it. We do dozens of these each year. Once they realize they aren't going to get the full discount if they use credit card they always quickly come up with a check.
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Lewis Landscape Services - Oregon
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www.lewislandscape.com - Portland Oregon Landscaping Company

landscape design Portland Oregon
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  #12  
Old 01-31-2012, 09:07 AM
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lawnkingforever lawnkingforever is offline
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Old 01-31-2012, 09:25 AM
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lawnkingforever lawnkingforever is offline
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I agree with Jim. 10% is much too high of a discount. I was going to offer a prepayment discount for a few slow players this coming season. Even then the discount offered will only be 3%-5%. Eliminating the function of monthly billing for a small drop in revenue is not something I am willing to do. For others it may be helpful as to gain valuable income coming out of winter to help with expenses.
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Old 01-31-2012, 09:50 AM
hudsonhawk hudsonhawk is offline
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Thanks for all the input, guys. I think I will drop the discount to 5%. To answer some of the questions. I always charge for extra work. It is not included in the prepay. If I go OVER the amount of cuts named in the contract then I charge regular price for those.
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