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pre pay customers

Discussion in 'Business Operations' started by MudslinginFX4, Apr 2, 2004.

  1. MudslinginFX4

    MudslinginFX4 LawnSite Bronze Member
    Messages: 1,170

    How many of you guys (and gals) have your normal maintenance customers on the pre pay plan. I have never had them pre pay before but was wondering about others. I have several customers who do pre pay me but they are not required. This question was brought about when a customer I was talking to today asked me why I don't have everyone pre paying. I basically told him that I didn't think all the customers would agree with that type of plan. And the other thing, the good customers are the ones that don't mind paying early (and I'm not worried about them anyways), it's the others that are always hard to decide about.
     
  2. coyoteman

    coyoteman LawnSite Member
    Messages: 89

    We offer a 10% discount to pre paying customers. It helps with start up costs and less collections that need to be made. I find many people like to pay up front when they have the extra money, especially at income tax refund time.
     
  3. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    no discount here, about half on pre pay. all new customers prepay.
     
  4. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,139

    It is an option for me. Not everyone is interested, but I do offer it for those who are.

    :D
     
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    It is written into my estimate sheet that they have to prepay. I find it easier that way, rather than having to explain it to them. And almost no one disputes it. maybe 1 out of 20, and that is a high guess. Everyone prepays for me, except for some commercials that wont no matter what, but with them i have a contract anyway. And no, no discount for it either.
     
  6. dcondon

    dcondon LawnSite Silver Member
    Messages: 2,246

    we have one that prepays for the year......... If we don't use up the total amount it carries over to the next year. works out great!
     
  7. qualitylandscaping

    qualitylandscaping LawnSite Bronze Member
    Messages: 1,581

    Three different options for me..

    1) Pay per cut.. Billed monthly

    2) 3-payment plan.. 1st payment due at signature of contract. 2nd due June 31, 3rd due August 31.. 5% discount for that..

    3) 100% down.. Entire season paid upfront.. 10% discount..


    Percentages that use each are:

    1) 68%
    2) 24%
    3) 8%
     
  8. WeatherMan

    WeatherMan LawnSite Senior Member
    Messages: 692

    All residental: Prepay or no cut
    Commercial: Bill monthly
     
  9. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    we dont offer a prepay program but our sub fert company gives a 6% prepay discount
     
  10. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Messages: 1,405

    I have certain residential customers that prepay a few weeks in advance and some who don't. At minimum I require pay per cut due within 10 days.
     

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