Pre Pays done!!!!

Discussion in 'Pesticide & Herbicide Application' started by RABBITMAN11, Dec 27, 2010.

  1. RABBITMAN11

    RABBITMAN11 LawnSite Bronze Member
    Posts: 1,373

    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..
     
  2. a plus bob

    a plus bob LawnSite Bronze Member
    from Indiana
    Posts: 1,160

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

    lawntennis LawnSite Senior Member
    Posts: 415

    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.
     
  4. LawnTamer

    LawnTamer LawnSite Gold Member
    Posts: 3,988

    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.
     
  5. lawntennis

    lawntennis LawnSite Senior Member
    Posts: 415

    MIne is Feb 20th. It is tough getting it out when everybody is paying bills from Christmas.
     
  6. fireman gus

    fireman gus LawnSite Senior Member
    Posts: 517

    Would someone please explain to me how prepay works and do you send them out to every client?
     
  7. RABBITMAN11

    RABBITMAN11 LawnSite Bronze Member
    Posts: 1,373

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

    LawnTamer LawnSite Gold Member
    Posts: 3,988

    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.
     
  9. lawntennis

    lawntennis LawnSite Senior Member
    Posts: 415

    Lawn Tamer 70% is impressive. We get around 30%. We onlly offer a 5% discount. Maybe a coupon would make a difference.
     
  10. greenbaylawns

    greenbaylawns LawnSite Senior Member
    Posts: 564

    We have a 5% discount and pre pays due by March 15. We try to start between April 1st through the 15th.
     

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