View Poll Results: Do you pro-rate?

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  • Yes

    18 64.29%
  • No

    10 35.71%
Results 1 to 8 of 8

Thread: Who Pro-rates?

  1. #1
    Join Date
    Nov 2006

    Who Pro-rates?

    Just wondering who pro-rates their services or who doesnt. I've been thinking about doing the pro-rating thing but not sure if I should or not.

    Also what do you all think about charging a $5 late fee?
    Last edited by LifeGuard; 01-18-2007 at 02:50 AM.

  2. #2
    Join Date
    Jul 2003
    Goleta, CA
    Why wouldn't you prorate. Must be a nightmare monitoring monthly usage per customer if you don't

  3. #3
    Join Date
    Oct 2006
    I only pro-rate on prepaid subscriptions (quarterly, semi-annually, and annually).

    Pro-rating monthly would be ridiculous.
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  4. #4
    Join Date
    Aug 2001
    It depends, do you do monthly billing or not? If so, you can bill on the anniversary date of the signup, thus no prorate needed. If you bill on say the first day of the month, then sure, you would need to prorate

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  5. #5
    Join Date
    Feb 2004
    Prorated billing on the 1st is so much easier than monthly billing. Clients might not like it initially (if they sign up on the 20th they might not have enough money to cover the additional bill coming on the 1st), however it makes it much easier for everyone to remember when bills are due. Also, your billing department will have a much easier time keeping track of who is late.

  6. #6
    Join Date
    Apr 2006
    I have my system set up so that you prorate to the first of the next month and pay for the next month too. That way the client receives one bill for the rest of the current month and next month. The client pays a bit more initially but don't have to pay now and again in 10 days time. This has been working great for me and I'm yet to receive a complaint
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  7. #7
    I agree with the above post. I bill on the anniversary date so pro-rating isn't an issue. ModernBill takes care of all the invoicing and such, so it isn't that difficult -- of course, my business is new and small...
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  8. #8
    Join Date
    Sep 2002
    Top Secret
    Just wondering who pro-rates their services
    That depends on the service.
    For certain services, which are required to be paid for on the same day of every month, you'd better believe services are prorated. If they WEREN'T, then I'd be crazy!

    In some cases, providers want you to pay for services on certain due dates, ie: your aniversary due date. This means that in those cases, if you're selling THEIR services, you must then charge customers in advance. Yes, it's tricky, but understandably so.

    Also what do you all think about charging a $5 late fee?
    That's nothing. Try $5/day AND a $25 reactivation fee

    Of course, I send individuals notification that invoices will be due well in advance (7 days), and give them a couple days before I start tacking on late fees and overdue fees. However, when the rubber meets the road, late fees are necessary to encourage individuals to pay their bills on time.
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