These are the Terms 2/5/14 take 2% if paid with in 5 days otherwise the whole bill is due at the latest 14 days. I do resi comm is different I'm sure I don't use these but I'm sure these terms or a cash discount would be fine to help get customers to pay faster if Its an issue one is having. The other thing only give terms to old clients. New clients pay up front.
These are the Terms 2/5/14 take 2% if paid with in 5 days otherwise the whole bill is due at the latest 14 days. I do resi comm is different I'm sure I don't use these but I'm sure these terms or a cash discount would be fine to help get customers to pay faster if Its an issue one is having. The other thing only give terms to old clients. New clients pay up front.
So with a 25.00 driveway they get a .50 discount.
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Snow is a little like religion and a lot like sex,you never know when your going to get it next!
I don't think they are trying to pull something by asking for a cash discounts. Companies, offer a cash discount of 1-3% if you pay your bill before the 5th or at the completion of the job. It helps companies with their cash flow. It still goes on the books, you just don't have to wait a 30- 45 day turn time on your monies.
I offer a discount for prepay, or for seasonal contract. I have to say I don't offer one for method of payment. We have a 13% tax here in Ontario on services, "Paying Cash" is usually code for "I don't want to pay the tax." My answer is that I pay myself well, and my company needs money, it all goes through the books. Asking me to take cash and give you a 13% discount means that I now have to remit 13% on what I collected from you. Who gets screwed here to save the customer tax.
I price all of my business in anticipation of a customer paying with a credit card, and I figure it is a rewards card (anyone who does cards knows the tiering levels the companies will charge you), which typically equates to 2.8-3.5%. AmEx is higher.
I use Square for all my processing anymore, which is a fixed 2.5% rate.
If a customer (snow, property management, sweeping, auto repair, truck beds, etc) wants to pay right then with cash, they get a receipt and 5% off the top. I am getting paid right then, I do not have to worry about my bank putting a hold on the check for a few days to verify its funds, nor do I have to worry about potential returned checks, processing fees, etc.
It does not cost me any money, I am not losing any profit, the customer is saving money, and I have my money right then.
Those charging extra for processing credit card transactions need to look closely at their merchant agreement, almost every processing company has stipulations in their user agreements, plus most states have a law, that prohibit charging more than a cash paying customer.
They do not, however, prohibit alternate payment discounts.
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Sagebrush Property Management
Division of OFCD LLC
I offer a discount for prepay, or for seasonal contract. I have to say I don't offer one for method of payment. We have a 13% tax here in Ontario on services, "Paying Cash" is usually code for "I don't want to pay the tax." My answer is that I pay myself well, and my company needs money, it all goes through the books. Asking me to take cash and give you a 13% discount means that I now have to remit 13% on what I collected from you. Who gets screwed here to save the customer tax.
Was thinking it comes off the amount you charge for the service, they would still have to pay taxes, even if they paid with cash, there still would be a paper trail, becuase it goes on the books.
This viebiage was on a hospital bill, If you pay the balance in full within 30 days, you may take a 10% prompt pay discount. If you are unable to pay your balance in full, you must contact me to set up payment plan.
People generally see what they look for and hear what they listen for. Harper Lee
I'd tell them if the hire someone that is accepting cash and giving a discount i.e not reporting the income, they are likely hiring someone without insurance or that will cancel insurance after season has begun and they no longer need to show proof of insurance.
BTW, GV, No sales Tax in NH.
Insurance? We don't need no stinking insurance.
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My beast - 2007 Chevy 3500 6.6 w/ 9.5 MVP Plus and 8' VBox
Others:
2005 Chevy 3500 6.0 10' Western, 8' VBox
2009 Chevy 3500 6.0 9.5 MVP Plus , 8' VBox
2007 Chevy 2500 6.0, 8' Western
2007 Chevy 2500 6.6, 8' Western
2009 Chevy 2500 6.0, 8.5 MVP Plus
2006 F250 5.4, 8' Western
2009 Tundra, 7.5' Western
2008 GMC Canyon, 6' Western and Western spreader
2012 Chevy 3500 (my beast for next year)
JD 320
JD 260
Case 580 Super M
2000 Chevy 3500
2003 Chevy 4500
2007 Freightliner
Linear Mode
