Prepaid Season

[OnMyOwn]

I just made this an option for my clients this year. I sent out the letters on Jan. 06 and received one yesterday for payment in full. Granted I did offer a 10% discount for the prepayment, but now I have use of the client's $$$ until the end of November. Investing this $$$ wisely, should result in a greater than 10% return over the course of (11) months.

Do any of you other mowing companies offer up this option?

 

[SpudsM15]

We do offer prepayment for the season. But, I only give maybe 5%, depending on the contract also if this does happen I ask for cash...

 

[out4now]

So what are you planning on investing in? Index fund or something else? Just curious.

 

[jpp]

I give 5 percent off of 25 cuts prepay program. After the 25 are used up they start getting a bill again. Sometimes the 25 are used up by October sometimes not. We are out until the end of November here.

 

[Green-Pro]

I only offer 5% off here as well. I also offer split payment, first installment due by March 15th, second due November 15th.

 

[tiedeman]

Yes, I offer pre-payment to certain customers that ask about it. I really don't like it too much though. Nothing like feeling you are working on a property for free during the year

 

[mtdman]

I've been doing this since 2000. I love it, think it's a great option. I don't have to bill these people monthly, I save on time and $$ there. I get use of their money up front, and I have about 25% of my customers do it.

 

[tiedeman]

One thing that I do love doing it for Tom is fertilization

 

[Trinity Lawn Care LLC]

I know that this may sound like a silly question, but I have never tried pre-paid service. Lets say that a customer prepays for 25 cuts. If the customer cancels service after 15 cuts do you return the money for the other 10 cuts? How does this work? Chances are you have already spent that money.

 

[eruuska]

We do offer prepayment for the season. But, I only give maybe 5%, depending on the contract also if this does happen I ask for cash...

Do you mean cash as opposed to a check? Why would you do that? I can't think of any legitimate reason for it.