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Pre-Pay Discount?

Discussion in 'Business Operations' started by nherweck, Jan 23, 2006.

  1. nherweck

    nherweck LawnSite Senior Member
    Posts: 321

    I've been looking for ways to gaurantee X number of customers this year, and I'm thinking of offering a discount to anyone that pre-pays the entire season for the basics plus any other services they know they want that year. What would be a fair percentage and how should I go about advertising this to past customers? I'm thinking a letter...but I'm unsure of how to word it. Thanks again.:waving:
  2. Prolawnservice

    Prolawnservice LawnSite Senior Member
    Posts: 612

    We have every customer on a self renewing contract, every year they get a letter in the spring. The letter just says if we are offering anything new and suggest they sign up for other services we offer. We also offer a pre pay discount for any mantenence account of 5% I'd say we get about 15 to 20 percent of multi year customers, very few first year pre pay.payup
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Around me, they offer between 5 and 20 percent...20 to me seems way to high. IMO, 10% sounds reasonable.
  4. yardmanlee

    yardmanlee LawnSite Senior Member
    Posts: 898

    I started to sent out a newsletter that will go out quartely and will offer a
    10% discount on all prepaid accounts by march 15 also offered level billing
    just sent out last week, heard from 3 wanting to know about some new services I will be providing this yr. hoping to get some prepaids
  5. garydale

    garydale LawnSite Senior Member
    Posts: 813

    About 30% of our customer base are prepay.
    We offer asliding scale discount 10% Jan., 7% Feb. and 5% March.
    Great for cash flow and preseason purhasing of materials..
    Senior citizens really go for discounts.
    Make sure your pricing will support the discounts.

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