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Deposits

Discussion in 'Commercial Snow Removal' started by daplowman, Oct 28, 2006.

  1. daplowman

    daplowman Member
    Messages: 65

    Hey guys,
    I have been enjoying the benefits of this site for the past few years. All of you advice has just been awesome. After last years let down and the fact that i have a few expenses that i have to deal with to get my truck ready for this year. I was thinking about either changing my billing method (right now per pass) to by the month, or requiring some type of a deposit when they sign the contract. Is that out of line or what are your words of wisdom. Thanks again folks for all the past advice. Also if anyone in the Central pa area gets behind look me up. Likewise anyone that would like to be a back up just shout ”never hurts”. I have a 2500hd 7 ½ Western straight blade and Spreader on the rear.
    LET IT SNOW LET IT SNOW
     
  2. Duracutter

    Duracutter Senior Member
    from Canada
    Messages: 200

    Of course, by the month means you have to be there anytime it snows. A deposit if you can do it is a great thing. If you can handle the cash and stash it right away... yeah... payup

    Sounds like you're doing mainly residential? If you do commercial, most won't pay in advance but pay more depending on size of business.
     
  3. daplowman

    daplowman Member
    Messages: 65

    99 Percent of my customers are commercial, I have 2 that are residential, and oh what a pain they are. I would be so happy if they would quit calling me, but you know the story they call I go.
     
  4. DaySpring Services

    DaySpring Services PlowSite.com Addict
    Messages: 1,065

    My residential are 50% due at signing of contract, 50% due the 3rd week of January. I've never had a problem with late paying customers.
     
  5. daplowman

    daplowman Member
    Messages: 65

    So you charge by the year

    Do you think you kake out good like that or do you think per pass would be better sometime?
     
  6. daplowman

    daplowman Member
    Messages: 65

    It Got Quiet

    Does any one else have any ideas?
     
  7. 2moresleeps

    2moresleeps Senior Member
    from Ontario
    Messages: 131

    You can always do both. When it comes to MY commercial accounts, I require the first payment to be made in advance. Nov 15 is the first payment I receive. It's always better to bill prior to the start of the month because they are less likely to slow-pay.

    Right now you are per push.......You might want to consider a contract stating a monthly fee and throw in an extra push.

    Example of contract:

    $500 per month for the first 11 pushes. $40 each additional push.

    So, lets say you charged them $50 per push in the past, you can show them that they are/will receive an additional push "FREE" with the contract and any additional pushes are also less expensive.

    Either way, its a win-win situation.

    Last year, we didnt receive a single flake of snow in March. NOT ONE. Luckily, I didnt have any probs from the customers who pay in advance, which is 99% of them, however, the 3 spots that pay at the end of the month did their usual :cry: about paying.

    Do what makes sense to you and your company. It does hurt financially if you gamble and lose on the per push seasons. Problem for you now might be the people with the long memories and dont want to pay per season since last year was quite mild.

    If you gamble and its a bad one, you know you are making out large.

    Good luck.
     
  8. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    personally i would not take $ from a customer in advance if i had a broke down truck that couldn't push snow if it did snow. the $ should be taken out of your business account or borrowed from the bank to fix the truck. i send out all our invoices after the last snow. this makes for a nice paycheck in the spring and it cuts down on paperwork.
     
  9. dmjr77

    dmjr77 Senior Member
    Messages: 225

    Here is the way that I do things and it seems to work out pretty well for me. I bill monthly on a per storm basis. I don't make it a practice to ask for advance money for storms, if a customer wants to send me payment for 4 storms or so, I will accept it.