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Offering a discount for a pre-paid season???

Discussion in 'Lawn Mowing' started by Phaneuf, Mar 20, 2008.

  1. Phaneuf

    Phaneuf LawnSite Member
    Posts: 30

    ...Say, %10 off for paying for entire season up front.

    Any thoughts on that???
  2. RickR1818

    RickR1818 LawnSite Senior Member
    Posts: 342

    I have read on here that 10% is pretty average. I myself started advertising 2 free mows instead of the 10%. I figure at $30 cut X 28 = $840 - 10% = $756 ($84 discount) Thats almost 3 free cuts which is like cutting for free an entire month. I try to get the customers to focus on # of free mows ($60) and keep a little more to cover gas and other exp. for the free mows.
  3. ffemtmcd

    ffemtmcd LawnSite Senior Member
    Posts: 532

    I offer a 10% prepay discount - I figure it's worth it to know that acct. is paid for. I like the 2 free mow thing though, might have to consider that.
  4. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    I wouldn't use a percentage. Use an actual dollar amount. You can say, $100 off. In most cases that amount wouldn't be 10%, but it sounds like a large amount.
  5. theguynextdoor

    theguynextdoor LawnSite Senior Member
    Posts: 265

    I'm going to offer that with my contracts. It will be nice to get some money up front to pay for things. But I also want some monthly contracts also so I have a steady income. I'm trying to decide whether or not to have people pay montly or 4 equal payments for the season.
  6. mag360

    mag360 LawnSite Silver Member
    Posts: 2,446

    We will be forcing notoriously slow payers to pay the entire season up front this year. They'll get a 6% discount (if they chose to continue to use us) and they can get a loan and make late payments on that as far as I'm concerned.
  7. grasswhacker

    grasswhacker LawnSite Gold Member
    Posts: 3,873

    I have 1 customer that I still do that for. However make sure you don't under estimate how many services you do, and even add 1 or 2 more mowings to be sure you cover you bases.
    Last year during the drought I made out pretty good, but most of the time it comes out very close to what I estimate.
  8. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Posts: 1,945

    I do 10% discount for prepay, people seem to like it and I don't have to worry about being paid.
  9. lawns Etc

    lawns Etc LawnSite Silver Member
    Posts: 2,272

    I offered that this year 10% and the usual great payers are the only ones to take benefit on this and the laggers all got a $5 increase but I am still waiting for a lot of contracts to come in as I only guaranteed pricing until April 1st on the contracted price so Ill see soon
  10. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,896

    I have offered seasonal prepay but it seems to be blown off around here. People can't afford $700-$1000 up front. As long as they are good monthly pays, I bill em that way and have abandoned the prepay offer.

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