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Pre pay Discounts

Discussion in 'Lawn Care Business Management' started by splatabowl, Feb 5, 2019.

  1. splatabowl

    splatabowl LawnSite Member
    Messages: 2

    Does anybody offer prepay discounts to their customers on their lawn treatment programs? If so, what percentage discount do you offer? We offer 7% off if its paid in cash and 3% if you pay with credit card for full upfront payment on programs. I was thinking of lowering it. Any thoughts?
     
  2. BigJlittleC

    BigJlittleC LawnSite Platinum Member
    from Chicago
    Messages: 4,453

    I offer 5% off for full payment preseason. Get a handful of clients to take it. Nice cash flow booster to kick the season off.
     
  3. tdoeizreal

    tdoeizreal LawnSite Senior Member
    Messages: 574

    Really pushing prepays for the first time this year. I also offer 5% off.
     
  4. grass4gas

    grass4gas LawnSite Senior Member
    Messages: 759

    I used to for the same reasons stated above. I stopped about 8-10 years ago except for a handful of clients who have been with me forever.

    I started at 10% when I first got into the business for the first 4-5 years, then 7% for 4-5 years, then 5% upto the time I stopped giving a discount as I was getting anywhere from 20-25% of my clients paying in full...alot of money left on the table.

    My advise is to accept them until such time that you are able to sock away enough cash to hold you over the winter, then reduce or stop altogether accepting them as you see fit. That is what I have been able to do for awhile.
     
    Puttinggreens and Tara Ann like this.
  5. BMWNJ

    BMWNJ LawnSite Member
    Messages: 115

    No discounts here. I only pre-pay 2 cuts at a time. No contracts with the customers but I do send out a description of the mowing service and what is expected to be performed and what is expected from the customer regarding pets, lawn obstacles, etc. I always leave myself an out in case I have to deal with crazies.

    I dropped a client last year over her dogs (not cleaning up crap and the last straw was letting them out while i was push mowing the backyard and they were bitting my pant leg and going after the mower. Small dogs are the worse lol) and just being a pita in general with unrelated expectations (wanted free bed edging, free cleanups, etc). If I were to have charged a full year in advance that would of been a nice chunk of change to have to return in the middle of the season.

    I inject cash at the beginning of the season by scheduling and performing mulch installations and cleanups. It's a 50% deposit to get on my spring schedule and the balance is due upon completion. That fronts the mulch money and shows me that the person wanting the service done is serious and won't cancel on me at the last minute.
     
    CJ's Mowing Service likes this.
  6. zlandman

    zlandman LawnSite Senior Member
    from Ohio
    Messages: 278

    Treatment program 5% prepay discount for whole year cash or check. Would offer same for mowing based on average number of cuts but haven't advertised that as of yet.
     
  7. kemco

    kemco LawnSite Bronze Member
    Messages: 1,811

    Same here 5% on prepay for 7 applications.
     

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