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Billing periods?

Discussion in 'Business Fundamentals' started by 1BadHawk, Feb 2, 2005.

  1. 1BadHawk

    1BadHawk Member
    Messages: 68

    When I started this bizz in Nov, I figured I would bill on fridays of the week in which services were performed. Figuring since we dont get a lot of snow events in MD this would be fine. And hopefuly eliminate any confusion by billin at the end of the month, since their wont be any "well I dont remember", or "i didnt see you out there (3 weeks ago). But now that the snow season in MD is underway, Ive alread sent out 2 bills in the past 2 weeks, and at this rate Ill be sendig out bills every week. The thing is , I didnt give thought to saltings in between events.

    Do you think I should change to biweekly billing? I think if I wait and bill at the end of the month, the bill will probably be fairly high and possibly intimidate the customers.
     
  2. avalancheplow

    avalancheplow Senior Member
    Messages: 265

    I bill on the 1st and 15th net 10 days.
     
  3. mickman

    mickman Senior Member
    Messages: 118

    As soon as event has passed, I do invoices and get them out ASAP.
    Most of our accounts are commercial & it takes 30-60 days to get paid
     
  4. GSE

    GSE Senior Member
    Messages: 108

    Me too, minus the net 10. Balance due on receipt, but of course with commercial they pay whenever the hell they see fit.....
     
  5. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I've always billed monthly, the last day of the month with payment due by the 10th. Seems to work well. Some people would rather "pay as you go", though. For them, when I plow, I leave a note tacked to their door of how much they owe. They'll send me a check or have a check tacked to their door the next time I come to plow. Doesn't make any difference to me how I get paid, as long as I get paid. But sending out bills every week could get pretty expensive in postage.
     
  6. SCSIndust

    SCSIndust Senior Member
    Messages: 280

    My bills go out in the mail the day after the storm. I have to work demanding hours, weird hours, and always be on call. I want my money ASAP. So do my guys...
     
  7. DJL

    DJL Senior Member
    Messages: 343

    For the condo association we had last year we used to fax the invoices the day after (or whenever I got around to it) the storm. I gave a NET30. One way to try and get your money quicker is to say if you pay within one week you save 25 dollars, within two weeks you save 10, or whatever you feel is appropriate.

    IMO, billing cycles can be a deciding factor when potential companies ask for your bid. Think about it, why go with someone who bills every week when you can go with someone that bills at the end of every month and is NET45?
     
  8. 1BadHawk

    1BadHawk Member
    Messages: 68

    I think im gonna try the 1st and 15th billing and see how that goes.

    I think they will be the compromise between once a week and once a month. Especially if we get several events and or icings in a single month.

    Thanks guyz
     
  9. digger3700

    digger3700 Junior Member
    from Ohio
    Messages: 10


    Same here except due upon Receipt , same as GSE
    Works well for us and times when we have lots of snow residential Customers don't get hit with large invoices. That of course has NOT been a problem this year ..
     
  10. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    I liked your company name and was intrigued to see some pictures of your work. Will your site be up and running soon? Are you doing it yourself or outsourcing? Sorry for the questions, Roald.

    I tried PMing you but it would not work.
     
  11. GSE

    GSE Senior Member
    Messages: 108

    Thanks, I've been getting some great positive feedback about it. The site is still a work in progress, I'm hoping to have all my i's dotted and t's crossed sometime this spring. Doing it all myself, so it's been slow going.....

    Feel free to email me if you have any more questions.... mpfeifer@gsearthworks.com

    --Matt