Small business owners often live and die by controlling their cash flow. Having a customer pay for products and services as they use them may not provide sufficient cash flow to your business. Getting the customer to prepay for products or services can be the difference between surviving and dying.
Smart tools and gift cards require you to front-load or prepay and then debit the card with each use. A slightly more advanced version of the prepay strategy involves bulk buys. Cell phone companies sell bulk data plans and charge huge fees if you go over. This forces customers to pay upfront for the largest plan they expect to use, even if it means buying a larger data plan than they might have otherwise chosen to ensure they do not get hit with very expensive overage fees.
How can you implement a pricing strategy to get your customers to pay you upfront or make larger bulk purchases for your products or services?
