Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Christopher Gray]

Thanks for the feedback everyone. Not only will I stick to pre billing...
it is time to start charging late fees. It's hard to imagine I used to do
all the billing manually.



On Tue, Jun 28, 2016 at 3:03 PM, Lewis Bergman 
wrote:

> I'll bet I may have credited a dozen account late fees in all the time we
> charged it.
>
> On Tue, Jun 28, 2016 at 1:34 PM Seth Mattinen  wrote:
>
>> On 6/28/16 11:18, Ken Hohhof wrote:
>> > I found a high proportion of people would pay the bill, ignore the late
>> > fee.  Then you would have to decide whether to void it or enforce it.
>> > Paperwork hassle either way.
>>
>>
>> I treat it as a partial payment and it'll be auto disconnected for
>> nonpayment like normal. If someone asks nicely we'll usually give them
>> one "out" per year if they don't have a history. But if they think
>> they're special or don't reach out beforehand or are an argumentative
>> a-hole then they are handled strictly by what's in writing regarding
>> their account.
>>
>> ~Seth
>>
>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Lewis Bergman]

I'll bet I may have credited a dozen account late fees in all the time we
charged it.

On Tue, Jun 28, 2016 at 1:34 PM Seth Mattinen  wrote:

> On 6/28/16 11:18, Ken Hohhof wrote:
> > I found a high proportion of people would pay the bill, ignore the late
> > fee.  Then you would have to decide whether to void it or enforce it.
> > Paperwork hassle either way.
>
>
> I treat it as a partial payment and it'll be auto disconnected for
> nonpayment like normal. If someone asks nicely we'll usually give them
> one "out" per year if they don't have a history. But if they think
> they're special or don't reach out beforehand or are an argumentative
> a-hole then they are handled strictly by what's in writing regarding
> their account.
>
> ~Seth
>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Seth Mattinen]

On 6/28/16 11:18, Ken Hohhof wrote:

I found a high proportion of people would pay the bill, ignore the late
fee.  Then you would have to decide whether to void it or enforce it.
Paperwork hassle either way.



I treat it as a partial payment and it'll be auto disconnected for 
nonpayment like normal. If someone asks nicely we'll usually give them 
one "out" per year if they don't have a history. But if they think 
they're special or don't reach out beforehand or are an argumentative 
a-hole then they are handled strictly by what's in writing regarding 
their account.


~Seth

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Adam Moffett]

Enforce it.

"Aw gee sir, it looks like you have a balance of $7 that's more than 30 
days past due so the system shut you off automaticallyI really wish 
I could help you, but the computer just won't let me reactivate until 
that little balance is clear.  Sorry, I sure wish there was something 
more I could do for you.  I guess you might just have to start trying to 
pay on time to make this dumb billing computer happy. I'm sooo sorry."


*rubs nipples*


-- Original Message --
From: "Ken Hohhof" <af...@kwisp.com>
To: af@afmug.com
Sent: 6/28/2016 2:18:54 PM
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

I found a high proportion of people would pay the bill, ignore the late 
fee.  Then you would have to decide whether to void it or enforce it.  
Paperwork hassle either way.



From:Jeremy
Sent: Tuesday, June 28, 2016 1:05 PM
To:af@afmug.com
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

Our late fee is $10I thought that was low.  I really would prefer 
the people who pay late and constantly need special attention for 
billing issues go elsewhere.


On Tue, Jun 28, 2016 at 9:25 AM, Lewis Bergman 
<lewis.berg...@gmail.com> wrote:

Very good point Ken.

On Tue, Jun 28, 2016 at 8:40 AM Ken Hohhof <af...@kwisp.com> wrote:
If you bill for the previous month, count on not getting the last 
month for at least half the customers who leave.  I’m talking about 
renters who move every 12 months, people who sell their house, etc.


That does affect your bottom line.

Also, if you turn someone off for nonpayment, and now they already 
owe you for last month plus part of this month, it can become 
tempting to just stiff you and find a new provider.  I know one ex 
customer that has gone through us plus 2 other local WISPs plus Rise 
Broadband twice.  I compare it to people who are under water on their 
mortgage, they are actually money ahead to walk away or get 
foreclosed.  You don’t want your customer to owe you so much money 
that it is in their economic best interest to switch providers and 
not pay you what they owe.



From:Jim Bouse [Brazos WiFi]
Sent: Tuesday, June 28, 2016 7:23 AM
To:af@afmug.com
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

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> 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
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

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

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[SmarterBroadband]

Ours is $10 also.  Still same people late and pay it most months….

 

From: Af [mailto:af-boun...@afmug.com] On Behalf Of Jeremy
Sent: Tuesday, June 28, 2016 11:06 AM
To: af@afmug.com
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

 

Our late fee is $10I thought that was low.  I really would prefer the 
people who pay late and constantly need special attention for billing issues go 
elsewhere.

 

On Tue, Jun 28, 2016 at 9:25 AM, Lewis Bergman <lewis.berg...@gmail.com> wrote:

Very good point Ken.

 

On Tue, Jun 28, 2016 at 8:40 AM Ken Hohhof <af...@kwisp.com> wrote:

If you bill for the previous month, count on not getting the last month for at 
least half the customers who leave.  I’m talking about renters who move every 
12 months, people who sell their house, etc.

 

That does affect your bottom line.

 

Also, if you turn someone off for nonpayment, and now they already owe you for 
last month plus part of this month, it can become tempting to just stiff you 
and find a new provider.  I know one ex customer that has gone through us plus 
2 other local WISPs plus Rise Broadband twice.  I compare it to people who are 
under water on their mortgage, they are actually money ahead to walk away or 
get foreclosed.  You don’t want your customer to owe you so much money that it 
is in their economic best interest to switch providers and not pay you what 
they owe.

 

 

From: Jim Bouse [Brazos WiFi] <mailto:j...@brazoswifi.com>  

Sent: Tuesday, June 28, 2016 7:23 AM

To: af@afmug.com 

Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

 

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> 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
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

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

 

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Ken Hohhof]

I found a high proportion of people would pay the bill, ignore the late fee.  
Then you would have to decide whether to void it or enforce it.  Paperwork 
hassle either way.


From: Jeremy 
Sent: Tuesday, June 28, 2016 1:05 PM
To: af@afmug.com 
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

Our late fee is $10I thought that was low.  I really would prefer the 
people who pay late and constantly need special attention for billing issues go 
elsewhere.

On Tue, Jun 28, 2016 at 9:25 AM, Lewis Bergman <lewis.berg...@gmail.com> wrote:

  Very good point Ken.

  On Tue, Jun 28, 2016 at 8:40 AM Ken Hohhof <af...@kwisp.com> wrote:

If you bill for the previous month, count on not getting the last month for 
at least half the customers who leave.  I’m talking about renters who move 
every 12 months, people who sell their house, etc.

That does affect your bottom line.

Also, if you turn someone off for nonpayment, and now they already owe you 
for last month plus part of this month, it can become tempting to just stiff 
you and find a new provider.  I know one ex customer that has gone through us 
plus 2 other local WISPs plus Rise Broadband twice.  I compare it to people who 
are under water on their mortgage, they are actually money ahead to walk away 
or get foreclosed.  You don’t want your customer to owe you so much money that 
it is in their economic best interest to switch providers and not pay you what 
they owe.


From: Jim Bouse [Brazos WiFi] 
Sent: Tuesday, June 28, 2016 7:23 AM
To: af@afmug.com 
    Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

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> 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
  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

  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

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Jeremy]

Our late fee is $10I thought that was low.  I really would prefer the
people who pay late and constantly need special attention for billing
issues go elsewhere.

On Tue, Jun 28, 2016 at 9:25 AM, Lewis Bergman <lewis.berg...@gmail.com>
wrote:

> Very good point Ken.
>
> On Tue, Jun 28, 2016 at 8:40 AM Ken Hohhof <af...@kwisp.com> wrote:
>
>> If you bill for the previous month, count on not getting the last month
>> for at least half the customers who leave.  I’m talking about renters who
>> move every 12 months, people who sell their house, etc.
>>
>> That does affect your bottom line.
>>
>> Also, if you turn someone off for nonpayment, and now they already owe
>> you for last month plus part of this month, it can become tempting to just
>> stiff you and find a new provider.  I know one ex customer that has gone
>> through us plus 2 other local WISPs plus Rise Broadband twice.  I compare
>> it to people who are under water on their mortgage, they are actually money
>> ahead to walk away or get foreclosed.  You don’t want your customer to owe
>> you so much money that it is in their economic best interest to switch
>> providers and not pay you what they owe.
>>
>>
>> *From:* Jim Bouse [Brazos WiFi] <j...@brazoswifi.com>
>> *Sent:* Tuesday, June 28, 2016 7:23 AM
>> *To:* af@afmug.com
>> *Subject:* Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?
>>
>>
>> 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> 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
>> 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
>>
>> 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
>>
>>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Lewis Bergman]

Very good point Ken.

On Tue, Jun 28, 2016 at 8:40 AM Ken Hohhof <af...@kwisp.com> wrote:

> If you bill for the previous month, count on not getting the last month
> for at least half the customers who leave.  I’m talking about renters who
> move every 12 months, people who sell their house, etc.
>
> That does affect your bottom line.
>
> Also, if you turn someone off for nonpayment, and now they already owe you
> for last month plus part of this month, it can become tempting to just
> stiff you and find a new provider.  I know one ex customer that has gone
> through us plus 2 other local WISPs plus Rise Broadband twice.  I compare
> it to people who are under water on their mortgage, they are actually money
> ahead to walk away or get foreclosed.  You don’t want your customer to owe
> you so much money that it is in their economic best interest to switch
> providers and not pay you what they owe.
>
>
> *From:* Jim Bouse [Brazos WiFi] <j...@brazoswifi.com>
> *Sent:* Tuesday, June 28, 2016 7:23 AM
> *To:* af@afmug.com
> *Subject:* Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?
>
>
> 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> 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
> 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
>
> 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
>
>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Ken Hohhof]

If you bill for the previous month, count on not getting the last month for at 
least half the customers who leave.  I’m talking about renters who move every 
12 months, people who sell their house, etc.

That does affect your bottom line.

Also, if you turn someone off for nonpayment, and now they already owe you for 
last month plus part of this month, it can become tempting to just stiff you 
and find a new provider.  I know one ex customer that has gone through us plus 
2 other local WISPs plus Rise Broadband twice.  I compare it to people who are 
under water on their mortgage, they are actually money ahead to walk away or 
get foreclosed.  You don’t want your customer to owe you so much money that it 
is in their economic best interest to switch providers and not pay you what 
they owe.


From: Jim Bouse [Brazos WiFi] 
Sent: Tuesday, June 28, 2016 7:23 AM
To: af@afmug.com 
Subject: Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

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> 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
  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

  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

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Josh Luthman]

Preach, Lewis!  There are people that will simply wait until they're
disconnected before paying.  We do a $5 late fee, which I feel is on the
low end as well.


Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373

On Tue, Jun 28, 2016 at 9:16 AM, Lewis Bergman <lewis.berg...@gmail.com>
wrote:

> I will tell you what does make a big difference is late fees. We made an
> additional ~$2K per month off late fees. They paid late with the fee and I
> was happy for them to do it. That was based off a $5 late fee which when
> compared to the average, which I think responses indicated to be about $7,
> were pretty lenient. If I had it to do over I would have charged $7.50 I
> think. think of it like a payday loan. These idiots are mare than happy to
> pay you just a few days late and pay extra. The funny thing is that it
> doesn't matter if it is the 1st, 15th, 20th, or whatever. They always pay
> late.
> I just figured there was no reason that the good paying customers should
> be carrying the bad payers.
>
> On Tue, Jun 28, 2016 at 7:23 AM Jim Bouse [Brazos WiFi] <
> j...@brazoswifi.com> wrote:
>
>> 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> 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
>> 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
>>
>> 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
>>
>>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Lewis Bergman]

I will tell you what does make a big difference is late fees. We made an
additional ~$2K per month off late fees. They paid late with the fee and I
was happy for them to do it. That was based off a $5 late fee which when
compared to the average, which I think responses indicated to be about $7,
were pretty lenient. If I had it to do over I would have charged $7.50 I
think. think of it like a payday loan. These idiots are mare than happy to
pay you just a few days late and pay extra. The funny thing is that it
doesn't matter if it is the 1st, 15th, 20th, or whatever. They always pay
late.
I just figured there was no reason that the good paying customers should be
carrying the bad payers.

On Tue, Jun 28, 2016 at 7:23 AM Jim Bouse [Brazos WiFi] <j...@brazoswifi.com>
wrote:

> 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> 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
> 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
>
> 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
>
>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Jim Bouse [Brazos WiFi]]

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

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Lewis Bergman]

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> 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
> 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
>
> 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
>
>
>

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Ken Hohhof]

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
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

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 

Re: [AFMUG] Postpaid vs Prepaid / Bill in Advance?

[Larry Smith]

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

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