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Becca30251
02-11-2008, 01:56 PM
Ok, I'll ask one more question then leave you guys alone. We have heard that alot of companies in this area offer their customers a discount if they pay the entire season in full before the season starts. Is this a good idea? If so, do we offer it only to the residential customers or do we offer it to both residential and commercial. We have some customers that own the business that we cut, and we also do thier homes. So, we're kind of confused as to how to handle this. Please give us your opinion. And, if we do offer this option, I was planning on sending an invoice showing thier whole season amount, minus the 10% discount. Is this a good idea, of course it says right on the statement that if they choose not to take the option, to just disregard the invoice and we will bill them monthly. Thanks so much, you guys have been a big help so far.

Steve
02-11-2008, 10:24 PM
Quote[/b] ]Ok, I'll ask one more question then leave you guys alone. We have heard that alot of companies in this area offer their customers a discount if they pay the entire season in full before the season starts. Is this a good idea? If so, do we offer it only to the residential customers or do we offer it to both residential and commercial. We have some customers that own the business that we cut, and we also do thier homes. So, we're kind of confused as to how to handle this. Please give us your opinion. And, if we do offer this option, I was planning on sending an invoice showing thier whole season amount, minus the 10% discount. Is this a good idea, of course it says right on the statement that if they choose not to take the option, to just disregard the invoice and we will bill them monthly. Thanks so much, you guys have been a big help so far.

Becca, you are not bothering us. This is what the forum is all about. Asking questions and giving answers!

What you are asking here makes me think of the old phrase, 'a dollar today is worth more than a dollar tomorrow.'

If you can get paid in full for the year's worth of lawn care service, I would jump on it. I have seen some lawn care business owners offer 10% off for prepay. I have seen some that didn't offer anything.

But if you want to experiment with this and offer a discount for the year, yea do it! That would be great. Then you don't have to track people down for payment. You are also guaranteed that working capital for the year.

How best to approach it? I would say I would talk to them and let them know you are offering this service and the discount for pre-pay. Once they are used to it one season, they will most likely jump on and do it year after year.

What's your view on this?

makbootzy
02-12-2008, 12:21 AM
I like the prepay idea...you get your money and they get a deal. I am also gonna be offering this

Steve
02-12-2008, 11:17 AM
Rick,

What kind of inducement will you be offering your customer base to jump on board with this? Are you going with the 10% off or will you use something different?

Steve
02-12-2008, 11:24 AM
I also wanted to add some thoughts on prepayment from others as well.

Chestin suggested this idea for prepay from this post (http://www.gophergraphics.com/forum/cgi-bin/ikonboard.cgi?act=ST;f=8;t=3346;hl=prepay).

Quote[/b] ]give your customers the option to prepay for your services. For example, letís say you have someone thatís interested in signing a year long contract for services but instead of you sending them a monthly invoice, you give them the option of paying it all upfront in exchange for 2 months worth of services free.

Now, you obviously need to know your costs very well to know how much you can afford to give them, but by providing this type of incentive youíll get a number of customers that would be more than happy to avoid all the hassles associated with sending payment PLUS they get 2 months worth of services for free.

Richard suggested this idea. From this post (http://www.gophergraphics.com/forum/cgi-bin/ikonboard.cgi?act=ST;f=8;t=3346;hl=prepay).

Quote[/b] ]We offer a 5% discount on prepaid contracts. And about 30% of my clients prepay. Itís all about the savings, who doesn't love to save money. At a company point of view, it starts the revenue coming in a lot earlier.

Steve
02-12-2008, 04:45 PM
patphish123 suggested this idea for pre-payment

Quote[/b] ]We sent out it looked like an invoice but it listed all the services we have done for them in the past with the regular price then a prepay discount of %10 if they signed it and returned a check by a deadline date it was just a good way to bring money into the company earlier to cover the spring costs, it worked very well to big response on it