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Finally got paid!!

Discussion in 'Business Fundamentals' started by Quality SR, May 6, 2007.

  1. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    I finally got paid from one of my accounts for the storm we had on St. Pats Day. :dizzy:
    They claimed they didn't get the bill. So I sent another one. 2 weeks later same thing. Finally i got it yesterday. :dizzy: Does anyone have in there contract that if the bill is not paid when due there is a late charge? Can I do this? I called them on Friday and i finally got someone on the phone. I was very nice, I said if I did anything wrong, they said no. They said I was very good. They even commented on the Feb. 14 storm (5" of snow then solid ice) they said i did a good job. So I said what was the problem, why wasn't i getting paid? They said they didn't get it. That is BS. I mailed out 3 bills and faxed it. Any input would be great.
    Thanks Rich
     
  2. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    How much is the account worth to you? I have a couple big accounts, very important income. They always lag on their last monthly check. Why? Because the can.

    I let it go because I know I will get it from them and I value the business. Last thing I want to do is get them upset.

    I have late fees in my contract but seldom enofrce them. The reason is it usually means you will just lose the contract of a little late fee. Even if it is in the contract there is very little to back it up and a lot of other plowers out there. Its not like you are a power company or something that has a monopoly on the market.
     
  3. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    They owed me $750. All of my other accounts pay either on the spot or within that week. The take a month or longer. I know they will pay me but it just the fact, you know. They take there sweet time paying me. Last time this happened they complained about the price to sand the lot. That complaint was made when i contacted them to find out what was going on with my money. I said to them that it is a good price. And i also said " you saw the price when you signed your name on the dotted line. Everything is in black and white." I guess people don't like to spend money.:dizzy: Also at the beginning of the season i tried talking him into salting instead of the sand. I cant imagine laying out all of that money for the salt and waiting over a month for the money.
     
  4. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    I'm not disagreeing with you. All my commercial work has to pay the first month up front. This gives me money for materials and such. They all will pay during the year because my threat then is that I will push people who owe to the bottom of the list and collect from them before I start plowing the next storm.

    The problem is with the end of the year. All my full year contracts pay right up. The two that are plowing only are the ones I have to wait on. I guess I hate writing the checks out as well.

    I will say these are personal businesses, not big coporations ot property management companies.

    I do not really know the size of you business, snowfall amounts etc. so the following is kind of a open statement.

    $750 is a lot of money for even a big company to be owed. However, if I understand right that is for one storm??? If true that sounds like to good of an account to be negative towards. I would just remind them that payments are due, (shorten the term, mine is 15 days now) and if it had snowed in April which does happen, you may not have been able to provide them with the quality service that you usually do.
     
  5. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    That is a good idea about telling them they will be on the bottom of the list. The are strict about the time I have to be done, so i guess i can use that against them. All of the sand is paid for it is just the point you know. And everything was in black and white in the contract. Yes this was one of my biggest. I managed to pick up 2 more during the season and i have them next year. The $750 was the removal of i think 5" of snow, and a application of salt/sand mix. Well next year is 10 days. That is in the contract that I mailed to them with the last bill. And i told him that on the phone and he said that was fine. Will they pay in 10 days, I don't know.
    Also he said he wanted to go with the straight salt. I told him in the beginning of the season that it was better. But now do i take a deposit? The lot is a little over 50,000 sf. I am a one man show,( sometime 2) that is alot of money to lay out you know. I mean $65 for a yard of mix isn't that bad.
     
    Last edited: May 6, 2007
  6. landcare pa

    landcare pa Member
    Messages: 98

    i wish i was only owed $750 bucks.

    i wish we where only owed $750 dollars, i think as of last week are still owed $200,000 for snow, but it will come in we dont usually start calling till it`s out over 90 day`s, the only bad thing about having large accounts is that 5 people have to go over the bill before they pay it. sometimes to keep good work you have to be willing to extend credit a bit longer than you would like but in the end it all works out. i personally wouldnt charge any fee`s if it is a good customer, it may cause you to loose a good account.
     
  7. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    Wow $200,000 thats alot of money. Your in a different class than me. You must alot of equipment, and employees. The $750 to me is like $200k. I think i am going to do like flipper said "if i am not paid in 10 days, the next storm ill have to be paid up front to avoid them from going to the bottom of the list. This place 3 people sign the check.
     
  8. snow problem

    snow problem Senior Member
    Messages: 118

    $200,000, did you get paid from anyone? How many accounts do you have, and how many events this winter. Just wondering, how do you pay your workers if your owed $200,000?
     
  9. landcare pa

    landcare pa Member
    Messages: 98

    payments

    we plow probably 50 sites some very big site`s and some small site`s all commercial accounts , this year was a late season which pushed are payments for snow back, are accounts receivable are always high. my guy`s and people always are payed before i we get payed snow plowing and salting are a good business, but we dont count on snow money to survive , you just have to learn to budget.
     
  10. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    Wow. How big are the properties you plow? What kind of equipment do you have? If you dont mind me asking if your owed $200,000 what did you make?
     
  11. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    The truth is Quality that I probably would never really bump them around on my list. That would just make more work for me or my other two drivers having to backtrack etc. It is the threat that usually does it. If nothing else let it happen once and you will see a quick payment, if they really are concerned.
     
  12. stroker79

    stroker79 2000 Club Member
    Messages: 2,802

    why dont you send the bill via certified mail and that way they have to sign for it to get it. you also get a reciept with a signature on it so you have proof.
     
  13. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    Not only will it be hard for them but if we get heavy snow, it will be hard for me. It is just a threat.
     
  14. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    Thats something else that i will be doing next year. I know how to push snow but the whole business thing :dizzy: i am still learning. Thanks for the advice.
     
  15. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    I am still owed a couple of thousand by all residentials. I am thinking out my game plan for collecting this years money as well as what I am going to do next year. It hasnt snowed here in a while. I feel as though if I make a drastic move or a threat to a customer, I definitly wont get the money. I feel as though if I just sit back and send out a statement once in a while the money will come in. The weird thing is, the people who owe me now are always people who pay fast. My initial thoughts going into next year were to take the people that I have carried their balance until now and get like a $350 deposit up front in November. That might be another good way to loose clientel. The problem is, when your the nice guy, you have to let people walk over you a lot. Regardless, my employees always get paid within 7 days of a storm no matter what my A/R is. Like that other guy said, learn to budget your money and always remain with a positive cash flow whether you are owed $200 or $200,000.
     
  16. Quality SR

    Quality SR PlowSite.com Addict
    Messages: 1,828

    I understand what your saying. I am still thinking about what i am going to do. In my business if you don't get money i don't do the work, if they give me partial i work until the money runs out. If i am not paid at all i don't go back until i am paid. If i am going to work for free i might as well sit home. I have jumped through hoops ( if you only knew) for them. And every payment was last the last payment was the latest. The other places i plow pay me. And most of all this is the only place that i lay out money. Why should i wait to be paid. If there was a problem, like something breaking, damage to something or anything else like that then i can see holding my money. There was nothing at all. There was always some kind of excuse. I do budget my money. Like i said i am a one man, one truck show. I have very little over head. I have a full time job, but i don't work when it snows so i basically do this to make something extra ( on top of my days pay). All i am saying is there should be no excuse why this is happening.