In the end, it doesn’t matter if it is pre or post billing. It may give you heartburn to see non-pays getting something for nothing for a month but in the grand scheme of things, it makes no difference because we have fixed monthly costs. If they pay or not doesn’t affect our OPEX.
Jim Bouse Owner Mobile IT Pro - Brazos WiFi 979-985-5912 j...@brazoswifi.com From: Af [mailto:af-boun...@afmug.com] On Behalf Of Lewis Bergman Sent: Tuesday, June 28, 2016 6:15 AM To: af@afmug.com Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance? Prebilling would be the preferred method I would think. We billed on the first and wanted to prebill. In the end, it probably didn't make a hug difference to the bottom line. I just liked the thought of limiting weekday someone got for nothing. On Mon, Jun 27, 2016, 4:50 PM Ken Hohhof <af...@kwisp.com<mailto:af...@kwisp.com>> wrote: Exactly. And most communications services (phone, cable TV, etc.) are prepaid for monthly charges and postpaid for usage based charges. -----Original Message----- From: Larry Smith Sent: Monday, June 27, 2016 2:41 PM To: af@afmug.com<mailto:af@afmug.com> Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance? If you do not "pre" bill for service, such as internet access, there is little to no chance of collection after the fact if they decide not to pay... We pre-bill for the "next" month on the 20th, due by the 1st, suspend services on the 6th for CC, ACH, etc (auto payments) that fail, then suspend cash, check customers on the 10th. Our billing system handles this without issue (Freeside). -- Larry Smith lesm...@ecsis.net<mailto:lesm...@ecsis.net> On Mon June 27 2016 14:35, Christopher Gray wrote: > I've setup my billing so everything is expected to be paid before service > is provided (prepaid). I send invoices in advance of a service cycle and > they are due by the beginning of the service cycle. Early on, I convinced > myself this was a good idea so I would never have to deal with collections > and it seemed fair. > > I'm working on switching billing systems, and the new system does not > really operate that way. This has me wondering if my method is really a > good one, or if there are good reasons to bill at the start of a service > cycle. I've gone through my bills and others I have available to me, and > very few actually bill in advance of a service cycle. > > Is there a good reason to avoid prepaid service or that companies tend not > to do it? > > -Chris
