should you give payment options?

Discussion in 'Business Operations' started by bobbygedd, Oct 13, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    is giving options on payment terms a good idea? for example, you could give them a choice: 9 month payment plan. 10 month payment plan. 12 month payment plan. do you see any drawbacks to giving them an option? any benefits to you?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    The only benefit of a 12-month plan I see BG is you have $$$ coming in all year long even when you are idle in the Winter.
     
  3. skurkp

    skurkp LawnSite Member
    Posts: 248

    don't see any benefit on not getting paid 12 months. I don't know about you but if I don't get paid every month I get pretty hungry... LOL
     
  4. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Mine is set up with different options than your example. It has worked out great for me over the last couple of years. I believe the client likes having a choice.
     
  5. Precision

    Precision LawnSite Silver Member
    Posts: 2,995

    More choices leads to more confusion.

    The GP is a rather dumb animal. The best payment option is the one that works for you and let them adapt.

    Besides it makes bookkeeping so much more complicated having different systems.
     
  6. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    IMO,yes.
    Example: 36 week schedule @ $40 per week.("I can't afford $40 per week)
    "No problem,we can put you on the EZ Pay plan for $29.95/52 week pay schedule.One year service agreement,no cancellation clause."
    Do the math.Yes,it indeed costs more overall with the 52 week plan,but alot of people can afford lower monthly payments.Now,it's going to cost me more waiting for their money when I can get an 8% return on investing,plus have the same bills coming in monthly.
     

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