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Multiple Payment options and discounts/upcharges for them?

1425 Views 7 Replies 4 Participants Last post by  Cooper Landscaping, 
C
For those of you who offer multiple payment options:
For "financing" (spreading the bill for 8 months of work over 12 so the customer has a set rate each month) do you charge and extra?

I ask this because I know a lot of the people who offer full season pre pay will give the customer a 10% discount.

From my point of view this discount is given because you have all of the money for the whole year available in the beginning of the year, more of convenience to you. Plus you don't have to send out bills to them after they pay the one time.

Using this point of view, financing is more of an annoyance as you are acting like a bank and essentially "loaning" them the money. Until the full amount is payed off for the year, you are out however much money they still owe. You have to send out more bills (12 a year instead of say 8 a year if you were billing monthly).

I'm just wondering if anyone charges and extra percentage for the financing option. I'm looking to expand next year and I'm curious as to how you guys do this.

Thanks
-Coop
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W
I recently introduced different packages, with payment options and discounts. I don't want to type all them out, but I will uplaod my new estimate sheet which has them included and explained. If anyones feels like giving my your opinion, go ahead. This is the first custom one I have came up with and I am sure I will alter it in the future and I learn more. There is no changing it now though, I have sent it off to the printers and they are making 3 sheet, carbonless copies.

MATT

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G
just cause any of us has broken down the payments to an equal fee for every month does not mean it is payable over 12 months.

My season is 9 months. If they want a budgeted payment, they have the option to pay it 9 months or 10. That is only full service customers. Easy for me, that is all we do.

Any additional work outside the description of work provided for full maintenance service is billed additionaly.
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AltaLawnCare
Matt,
Thanks for posting that estimate...looks very good. If you don't mind, I might modify it some and use it to replace mine.
Mine are very basic...just a list of services, on a sheet which I fill in at the job site...then If I get it, the contract is more detailed.

One thing I've figured out, is that you need a minimum for 12 month payments...a really small mow only acct. is better off billed out 100% monthly, then collected then.
Big accounts are nice coming in 12 months. ;)
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W
I don't mind. Mine was basic also and I need to come up with something to fill the rest of the sheet and things just started to come together.

Good luck
MATT
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C
Matt-
Thanks for that. Right now I'm in Japan and using a computer that doesn't have excel- I'll be home in less than a week so ill look at it then.

Originally posted by GLAN
just cause any of us has broken down the payments to an equal fee for every month does not mean it is payable over 12 months.

My season is 9 months. If they want a budgeted payment, they have the option to pay it 9 months or 10.
Click to expand...
Glan-
Thats a point I hadn't thought about. This question was more directed at the people like Etwman (I don't think hes around anymore) who split the payments over 12 months so they have income year round regardless of how much snow they got. I was just curious as to whether they charged extra for it. But thanks for your idea, that might work a little better!

Thanks for the replies, keep em coming!
-Coop
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G
Cooper


When your refering to snow and if they get paid extra if there was more. I am guessing you mean the snow contract? or the whole package
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C
Glan- When I said regardless of the amount of snow they got they have year round income I'm refering to the people who get paid per push. In my area most people wont sign an annual contract because it varies so much from year to year. For example: last winter- we had something like 13 plowable storms, as opposed to the year before when we only had one plowable storm. If the contract is spread out over the 12 months, we get paid year round, no matter how much it snows. If it snows a lot, well then you get more money (if you plow), in addition to the money you're already making off the contracts. Did that make sense?

-Coop
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