Monthly maintenance prepay 5% discount or Credit Card auto billing and get dinged fee

Discussion in 'Business Operations' started by Exact Rototilling, Feb 1, 2013.

  1. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,359

    To me for client's billed same amount every month why not have them trained to prepay monthly and give them a 5% discount vs using SAP and process at the end of the month and get dinged a fee by the CC processing Co.....?
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  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Why not just bump everyone up 5%? Then take the hit.
     
  3. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,359

    Yeah I see your point but I rather a avoid the entire CC thing and train my clients on a monthly prepay... To get 5% off vs letting the CC Co. Force me through hoops then loosing 2-5% anyhow....?

    The other factor is people are so miserly here and always looking for an intro special or bargain deal. The older fixed income ones tend to be worse.

    Perception is everything or close to it.
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  4. cps

    cps LawnSite Member
    Posts: 109

    We offer a 10% discount for customers that pay in full for the season.
     
  5. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,359

    I'm seriously considering doing that for a few accounts.

    Do you bundle services such as fert, weed control and other extras beyond mowing...? PM if you prefer.

    :waving:
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  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,737

    If they would prepay with cash I might give a little discount, 5% can add up. 2 % would be a lot better.
     
  7. cps

    cps LawnSite Member
    Posts: 109

    We offer a customized service plan for each property. Most only include Spring/Fall Cleanups and weekly or biweekly mowing. Any additional services are just billed out monthly.
     
  8. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Posts: 5,359

    Regardless of how it's sliced or diced. I'm looking to reduce my time spent billing since I'm expanding operations here a solid 40%+.

    So what exactly is the credit card fee these days...? I may still sign up for smartphone card reader but I'd rather give.the discount of 5% to the client.
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  9. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,184

    When it is all said in done, giving up 5% to the banks or the client is tough to cover and be competitive. People want to use CC for miles, points or convenience.

    I have been told the high rates are because of the reward programs. Banks advertise low rates but if they pay via quickbooks or some other on-line system it is keyed in = bump in rate and if a reward card = bump in rate.

    I am still trying to find a way to work around this so let me know.

    I am liking the Intuit Payment Network (IPN) as it is only 50 cents per transaction. Thinking long and hard about dropping the CC all together.
     
  10. cps

    cps LawnSite Member
    Posts: 109

    We use Gopayments as it links with my Quickbooks I believe the rate is 1.7%
     

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