For high-ticket services, offer a "layaway" option as a downsell if a client cannot pay a large upfront deposit. The client can make flexible payments, but service delivery only begins after a specific cash threshold is met, pulling cash forward for the business.

Related Insights

Attract customers with a heavily discounted first month or term. Simultaneously, charge a substantial one-time setup fee. This strategy liquidates acquisition costs and generates immediate cash flow while the discount drives initial interest, solving two problems at once.

Service businesses with delayed LTV can improve immediate cash flow by offering bundled, one-time services (e.g., setup, moving, supplies) at signup. Customers are less sensitive to these initial costs than to higher recurring fees.

For high-ticket software or services, position a large setup fee as a standard part of the offer. Then, present an alternative: waive the entire fee if the client commits to a one-year contract. This creates a powerful incentive and gives the customer the illusion of choice, making the annual commitment feel like a significant win.

The business creates two offers: a high-ticket annual prepay ("anchor") and a standard quarterly payment ("core"). Even if only 20% of customers take the anchor, it significantly increases the average cash collected per sale across all customers. This strategy makes the entire acquisition model more profitable without changing the core product.

For high-ticket services with delayed results like SEO, use a 'Waived Fee' offer. Present a large one-time setup fee plus a monthly retainer. Then, offer to waive the setup fee if the client commits to a longer term (e.g., 12 months), with an early-out clause if performance metrics aren't met in 90 days.

Instead of absorbing labor and commission costs, a service business can bundle them into customer-facing "bin" and "initiation" fees. This shifts the financial burden of acquisition to the new customer, allowing the business to collect enough cash upfront to cover all costs and become immediately cash-flow positive on each new sale.

For services like SEO where results take time, structure the offer with a choice: a large one-time setup fee for month-to-month flexibility, or waive the setup fee entirely for a 12-month commitment. This incentivizes long-term contracts by removing the initial cost barrier for the client.

This attraction offer replaces free trials. Customers pay a significant amount upfront for a service. If they achieve a predefined goal, they get their money back, often as store credit for future services. This model dramatically improves initial cash flow and incentivizes customer success.

To overcome cash flow issues for large purchases, small businesses can offer a 'Special Purpose Vehicle' (SPV) to loyal customers. A customer fronts the capital, gets repaid first from the sales, and then splits the remaining profit with the business, turning patrons into financial partners.

Offer a payment structure where the customer pays in full before receiving the service. This classic 'layaway' model eliminates accounts receivable issues and incentivizes customers to pay faster to get what they want, flipping the traditional dynamic of chasing payments.