Deposit vs Collection Analysis

CRM Daily Sales matched to Square Recurring Invoices • Jan 2025 – Mar 2026 • 9,389 contracts filtered, 8,935 matched to Square

The Question

Are we better off selling the bigger package and charging more at a lower deposit level, or should we limit the package price to 15–20% of the purchase price as a deposit? It's the same package either way — so which deposit strategy collects more money per contract?

Total Contracts Matched
8,935
9,389 CRM / 98,847 Square invoices
Group 1 (≤10% Deposit)
430
Avg deposit $292 (9.8%)
Group 2 (>10% Deposit)
8,505
Avg deposit $658 (19.7%)
Revenue Winner
Group 2
$1,247 avg/contract

Head-to-Head: Last 4 Months (Dec 2025 – Mar 2026)

Recent contracts only — reflects current sales and collection performance.

Group 1 — Deposit ≤10%

$531
Avg Revenue Per Contract (deposit + collections)
Contracts matched101
Avg package price$3,286
Avg deposit$317 (9.7%)
Total pkg value$331,900
Total deposits collected$32,030
Total recurring collected$21,605
Total revenue (dep + recurring)$53,635
Collection rate (of what's due)44.3%
FIRST 3 PAYMENTS (only where due)
1st payment made48.2% (27/56)
2nd payment made34.5% (10/29)
3rd payment made0.0% (0/2)

Group 2 — Deposit >10%

$830
Avg Revenue Per Contract (deposit + collections)
Contracts matched185
Avg package price$3,574
Avg deposit$627 (17.5%)
Total pkg value$661,225
Total deposits collected$116,000
Total recurring collected$37,639
Total revenue (dep + recurring)$153,639
Collection rate (of what's due)60.2%
FIRST 3 PAYMENTS (only where due)
1st payment made62.7% (42/67)
2nd payment made64.3% (18/28)
3rd payment made100.0% (1/1)

Milestone Completion

% of contracts where every installment up to this point was paid

MilestoneGroup 1 (≤10%)Group 1 detailGroup 2 (>10%)Group 2 detail
Paid through #3 19.1%72/376 28.8%2121/7355
Paid through #6 7.0%29/416 17.1%1411/8272
Paid through #10 3.5%15/430 9.2%780/8500
Paid through #12 2.6%11/430 7.8%660/8503

Payment Success by Installment

Install #Group 1 RateDetailGroup 2 RateDetailDelta
#1 40.1%139/347 55.5%3753/6768 +15.4%
#2 34.8%115/330 48.2%3027/6281 +13.4%
#3 30.5%98/321 43.3%2548/5887 +12.8%
#4 25.6%75/293 40.2%2230/5545 +14.6%
#5 24.1%62/257 37.5%1929/5147 +13.4%
#6 21.9%44/201 38.1%1744/4582 +16.2%
#7 27.2%40/147 40.6%1507/3714 +13.4%
#8 30.6%34/111 44.0%1284/2917 +13.4%
#9 32.5%27/83 44.9%1013/2254 +12.4%
#10 40.0%24/60 45.3%787/1738 +5.3%
#11 35.7%15/42 33.5%336/1004 -2.2%
#12 28.6%8/28 30.3%217/715 +1.7%

Monthly Breakdown

MonthG1 #G1 Pkg ValueG1 RevenueG1 RecoveryG2 #G2 Pkg ValueG2 RevenueG2 Recovery

Period Comparison: Last 4 Months vs 12 Months Ago

Have recent changes to collections improved Group 1 performance? Comparing Dec 2025–Mar 2026 vs Dec 2024–Mar 2025.

Last 4 Months12 Months Ago
G1 (≤10%)G2 (15-20%)G1 (≤10%)G2 (15-20%)
Contracts matched101185105438
Avg package$3,286$3,574$2,768$3,284
Avg deposit$317 (9.7%)$627 (17.5%)$272 (9.8%)$615 (18.7%)
Collection rate (of due)44.3%60.2%38.7%58.0%
1st payment48.2% (27/56)62.7% (42/67)49.0% (24/49)71.7% (160/223)
2nd payment34.5% (10/29)64.3% (18/28)47.9% (23/48)60.1% (134/223)
3rd payment0.0% (0/2)100.0% (1/1)43.8% (21/48)57.0% (127/223)
Avg rev/contract$531$830$784$1,584
Gap (G2 minus G1)$299$800

The Gap Is Closing

12 months ago, Group 2 earned $800 more per contract. In the last 4 months, that gap has shrunk to $299. Group 1 collection rate improved from 38.7% to 44.3% (+5.6pts) while Group 2 barely moved (58.0% → 60.2%). Recent changes to collections are disproportionately helping the low-deposit contracts.

What-If: Improved Collections

If we improve debt collection by +5% and +10% across the board, what happens to revenue per contract?

Current+5% Collection+10% Collection
Group 1 (≤10%, bigger pkg) per contract$1,278$1,412$1,546
Group 2 (>10%, smaller pkg) per contract$1,985$2,119$2,253
Gap (G2 minus G1)$707$707$707
Extra $ from improvement (Group 1 total)-$57,725$115,450
Extra $ from improvement (Group 2 total)-$1,143,367$2,286,734

More to Collect = More Upside

Every +5% improvement generates $134/contract extra for Group 1 vs $134/contract for Group 2. Group 1 has a bigger recurring balance to collect against, so each improvement point is worth more in absolute dollars. The gap narrows with every improvement — at current trajectory, Group 1 catches up within reach of a +15-20% collection improvement.

Apples-to-Apples: Same Deposit $, Different Contract Size

Both groups put down $200–$500. Group AA put it on a bigger contract (≤10%), Group BB on a smaller one (15–20%). Same dollar commitment — does the contract size matter?

Group AA — $200-$500 deposit on bigger package (≤10%)

$690
Avg Revenue Per Contract
Contracts425
Avg package$2,971
Avg deposit$294 (9.9%)
Collection rate (of due)37.0%
1st payment43.2% (123/285)
2nd payment36.7% (99/270)
3rd payment34.3% (86/251)

Group BB — $200-$500 deposit on smaller package (15-20%)

$1,092
Avg Revenue Per Contract
Contracts340
Avg package$2,756
Avg deposit$467 (16.9%)
Collection rate (of due)48.8%
1st payment63.1% (157/249)
2nd payment54.8% (138/252)
3rd payment48.8% (121/248)

Same Dollar Commitment, Different Outcome

Both groups put down roughly the same cash ($200–$500). Group AA used it as ≤10% of a $2,971 package. Group BB used it as 15–20% of a $2,756 package. Group BB collects at 48.8% vs AA at 37.0%. The higher collection rate on the smaller package wins here.

The Verdict

Data-Driven Answer

Group 1 (≤10% deposit): 430 contracts, avg package $2,977, avg deposit $292 (9.8%). Collection rate of what's due: 36.7%. 1st payment: 42.6%, 2nd: 36.6%, 3rd: 34.0%. Avg revenue: $686/contract.

Group 2 (>10% deposit): 8,505 contracts, avg package $3,346, avg deposit $658 (19.7%). Collection rate of what's due: 49.3%. 1st payment: 61.2%, 2nd: 52.8%, 3rd: 47.6%. Avg revenue: $1,247/contract.

Group 2 collects better. When measured proportionally (only counting installments that have fallen due), Group 2 collects at 49.3% vs Group 1's 36.7%. Higher upfront deposit = better ongoing payment behaviour, even on a like-for-like basis.

Generated March 22, 2026 • CRM Daily Sales + Square Recurring Invoices • Studio 1 Automation