prepayment discounts

Discussion in 'Pesticide & Herbicide Application' started by envi lawn, Jan 29, 2004.

  1. envi lawn

    envi lawn LawnSite Member
    Posts: 12

    How many lawn care companies offer a pre-pay discount? I just mailed out all my 2004 proposals, and offer all my lawn clients a 10% discount on any service they prepay for.
    My question, is 10% too much?
     
  2. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    WOW,,,,,thats way to much! unless your already hammering them on price?

    2 or 3% maybe and you should make it by the quarter or half year prepayment at the minimum!
     
  3. James Cormier

    James Cormier LawnSite Bronze Member
    from Ma
    Posts: 1,218

    5-10% is normal in this business,(fertin &squirtin) we offer 8% and around 70% of our customers pre pay,

    Right from day one when I started this company I budgeted for this so its not too big of a deal.

    If you collect alot of prepay you better be good at mananging your money
     
  4. envi lawn

    envi lawn LawnSite Member
    Posts: 12

    My residential lawns, 6,000-8,000 s.f. average $65-$80 per app.
    I add 50% for grub application (mandatory). 5 - 7 apps/yr.

    One competitor offered 10%, but lowered it this year to 8%.

    80% of my accounts are within 3 miles of my shop. One truck stop services 2-9 lawns, typically.
     
  5. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    those are good numbers envi,,,,i would think you can take the 10% hit without any problem!

    in florida the numbers are more like $8.00 to $9.00 per thousand so a 10% hit hurts!
     
  6. James Cormier

    James Cormier LawnSite Bronze Member
    from Ma
    Posts: 1,218

    BTW...isnt it too late to be asking if 10% was too much after you sent out your renewals?
     
  7. tennissippi

    tennissippi LawnSite Member
    from zone 7b
    Posts: 77

    I only offer 5% if the customer prepays. I give discounts to customers that provide referrals as well.
     
  8. ipm

    ipm LawnSite Senior Member
    Posts: 264

    :blush:
     
  9. envi lawn

    envi lawn LawnSite Member
    Posts: 12

    I use my pre-pay money to purchase most products up front. My insurance is also due in Feb., so its nice to get the bigger expenses behind me early in the season. I show my appreciation to my customers with the 10%.
    As my prices to the consumer go up, They offset them by pre-paying.
     
  10. James Cormier

    James Cormier LawnSite Bronze Member
    from Ma
    Posts: 1,218

    Envi- I checked out your website and I have a couple of questions for you if you got a minute?

    1. all the pic are not there, just a white box with a red x in them Ive noticed this on just a few sites. why is that?

    2. As soon as I loaded your site I was bombarded with pop ups, so I left,checked out a few different sites and then came back to yours and I was bombard again. Do you know this happens? I never took the time to really see you site cause I hate pop ups(like most people). Just thought you should know.

    3. Where in central mass are you?
     

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