Pre paying for the season.

Discussion in 'Lawn Mowing' started by GSO LAWNEN4CER, Apr 5, 2018.

  1. Todd73

    Todd73 LawnSite Bronze Member
    Male, from Florida
    Messages: 1,834

    All my customers pay monthly.

    This January, I switched to auto draft only. My neighbor, who has been with me the longest, didn’t like that idea as he does nothing auto draft, so he payed six months in advance. He then pays for incidentals, like hedge trimming, as needed. So far it’s worked out fine.
     
  2. OneManMowing

    OneManMowing LawnSite Member
    Messages: 4

    I haven’t had too many cases that people wanted pay in advance, but I guess if I did I would start a bank account just for that and pay myself however I wanted. May not be that bad. As I rethink it, hell, it just might be better!
     
  3. Garrett1234

    Garrett1234 LawnSite Member
    Messages: 56

    Hello all. I’m on the consumer side of this discussion and someday soon hopefully in a very small way on the service side of this discussion also. I hope being a non professional doesn’t offend anyone by posting here. I have been moderately fortunate to have people that do routine service for my family and me. And very very few do I prepay. Those I do prepay, are those people or companies that have earned my trust, respect, and appreciation of performance. The ones i don’t offer the prepay to are the ones i question the above. I would think that anybody on this forum who receives an offer of prepay for service should feel proud to have earned the trust, respect, appreciation of performance from that said customer. I believe it’s an amazingly positive thing. Now, if i was to offer a prepay to Someone and they declined to accept it would not alter my opinion of them. I would hope to hear from them “I don’t feel comfortable being paid for services not rendered. I would prefer to continue to earn your business rather than make you feel obligated to use me because of your prepayment”. I don’t feel the customer needs to know the receiver of the prepay is poor at managing money, doesn’t understand that prepay can be invested to earn interest, increase credit lines if needed for borrowing, or a plethora of other positive reasons; it’s a positive thing. THERE IS NOTHING FISCALLY NEGATIVE ABOUT A PREPAY! That’s not an opinion it’s a fact. Emotional side I can not comment on. Remember that many wealthy will do year end prepaid (December) as it’s the end of the year and deductible on this years taxes even though services are being performed the following year. It would be a disservice to your customer to not receive the prepay in that case. Hope this sheds some light from the consumer side.
     
    hort101, Mitty87 and GSO LAWNEN4CER like this.
  4. That Guy Gary

    That Guy Gary LawnSite Senior Member
    Messages: 946

    Prepay can be invaluable if you have a lot of employees, same with installment contracts.

    As an example, the company I work for got murdered this Winter. Last year was horrible too but in a profitable way if you provide snow services. So horrible no one was really prepared for the snow load. Local supplies of things like cal-mag ran out and professionals were out applying rock salt on walkways. We had to actually rent a skid and haul snow off our larger multi residential props, it was a mess.

    This Winter we stocked up and also purchased some new equipment. We had a total of 3 pushes all season and the shiny new snowblowers are still shiny and new. Starting up in the Spring would have been very difficult if we didn't have our prepay and installment contracts.
     
    Mark Oomkes and hort101 like this.
  5. TDzacslawncare

    TDzacslawncare LawnSite Member
    Messages: 117

    I will always accept pre-payments. I do not discount for it. Same price. I can’t think of a single negative as it relates to my business.
     
  6. CITY PARK CONTRACTOR

    CITY PARK CONTRACTOR LawnSite Member
    Messages: 115


    I have one church that prepays for the year. I like it, obviously, I don't have to wait around for pay. What are the negatives? Don't see any...you never have to worry about late pay or "check in the mail" or collection hassles.
     
    hort101 likes this.
  7. Lawntkd

    Lawntkd LawnSite Member
    Messages: 214

    Prepays are nice but should always be a very small part of your business. You don't want to work for money you already spent too much.
     
    OneManMowing likes this.
  8. BigJlittleC

    BigJlittleC LawnSite Silver Member
    from Chicago
    Messages: 2,436

    If your money management is not good I agree. But if you know how to budget it shouldn't matter.
     
  9. Trees Too

    Trees Too LawnSite Platinum Member
    Messages: 4,283

    You mean getting all your money up front for the entire season?!?
    Hells yeah!!!
    Wish all customers were so generous to to this. payup
    No problems with slow payers, delinquent accounts, taking customer to Collections, Small Claims and the like!
     
    Mark Oomkes likes this.
  10. lawnworker

    lawnworker LawnSite Senior Member
    Messages: 900

    Pre payment would be great. No worries about billing or collecting. I don't understand the feeling of mowing for free. The amount of money is the same, either way. The thing I would caution you about is make sure you and the customer have a clear understanding of what services are or are not covered under the terms of your agreement.
     
    Mark Oomkes likes this.

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