How the Prepay Discount Calculator works
The prepaid amount is the season's full price minus your discount.
Without prepaying, some customers stop partway through. We assume they leave about halfway on average, so you lose half their season. Some pay late or not at all, and every visit has a small card or invoicing cost.
Prepay leaves you ahead if the prepaid amount is more than what you'd likely collect otherwise. The most discount that still pays is the point where the two are equal.
These are estimates from your own percentages. Your records from last season are the best guide.
Tips from the trade
- Offer prepay before the season starts, when customers are planning and you need cash for supplies.
- Keep the discount simple, like 5%, and make it clear what happens if they move or cancel.
- Put the prepay terms in writing. Our Service Agreement Template is a good place to start.
A worked example
Here's the example that's already filled in above, so you can see how the Prepay Discount Calculator works before you enter your own numbers.
- Price per visit$45
- Visits in the season30
- Prepay discount you're thinking of5%
- Customers who usually stop mid-season10%
- Customers who usually pay late or not at all3%
- Card or invoicing cost per visit$1
- Your business name (for the offer)Green Street Lawn Care
The result: prepaid amount $1,283; what you'd likely collect otherwise $1,214; prepay leaves you Ahead $68; most discount that still pays 10.1%.
A 5% prepay discount leaves you about $68 ahead per customer, plus the cash up front. You could offer up to about 10.1%.
Related free tools
- Slow Season Planner: how much to save each busy month so slow months don't hurt.
- Service Agreement Template: a plain-language recurring service agreement covering price, payment, skipped visits and ending it.
- Customer Lifetime Value Calculator: what one regular customer is really worth over the years, and what it's fair to spend to win one.
When you need more than the free Prepay Discount Calculator
This tool writes one document. Running a business means doing it on every job, with your own rates saved and a quote you can send.
Prepay Discount Calculator questions
Should I offer a discount for prepaying?
Often, yes. Prepaying brings cash up front, removes late payments and keeps customers for the whole season. This calculator shows how big a discount still leaves you ahead.
What's a typical prepay discount?
Many service businesses offer 3% to 10%. The right amount depends on how many customers usually drop out or pay late.
What if a prepaid customer cancels?
Decide your policy up front, such as refunding unused visits minus the discount, and put it in writing.
Does this include the value of having cash early?
Not directly. Cash up front is a bonus on top of the numbers here, especially at the start of a season.