Prepay discounts

Discussion in 'Lawn Mowing' started by Jenyss, Feb 21, 2012.

  1. Jenyss

    Jenyss LawnSite Member
    Messages: 22

    We usually offer a 10% discount for customers who prepay for the season but are unsure about what to do with the questionable gas prices. Any suggestions?
  2. lawnkingforever

    lawnkingforever LawnSite Bronze Member
    Messages: 1,280

    There was a good thread on this subject not too long ago. But I think 10% is far too high of a discount. I was thinking of offering a 3-5% discount for prepay of the entire season and I am not even sure if I want to do that. If slow payers or cashflow is an issue then I could see a reason do it.
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  3. Jenyss

    Jenyss LawnSite Member
    Messages: 22

    Thanks! I did go back and read the other posts. I htink we will reduce it to 5% this year - we do have cash flow issues at the beginning of the year and a few slow pay customers.
  4. scotts lawn care

    scotts lawn care LawnSite Senior Member
    Messages: 468

    I offer a 5% discount to my customers who prepay for the season. It's a tough sell in today's economy to get that much $ up front tho.
  5. bls47303

    bls47303 LawnSite Senior Member
    from Indiana
    Messages: 354

    Ive got 3 prepay customers only 2 of which get a 5% discount. Its nice having an extra 5k to start the year.
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,296

    I would say cut your prepay down to 3-5%. 10% is an awfully generous prepay unless you are top loading the price then taking out the discount.
  7. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,876

  8. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    Yeah I remember that one as well. What is the best way to handle an unknown total amount of mowings? Bill those out at the end of the season?

    There was another thread about monthly prepays or pay as you go. Payment due by the 1st just like rent. So why not for mowing? The incentive is no Billings sent out and less paperwork hassles?
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