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Getting Paid

Discussion in 'Business Fundamentals' started by Underdog1, Nov 8, 2004.

  1. Underdog1

    Underdog1 Junior Member
    Messages: 17

    how does everyone collect payment for residential jobs? do you send them bills at the end of the month? or at the end of each storm? do you have them send you a check or do you collect it yourself?
     
  2. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    I only have 1 residential but I bill them the same as all my commercial accounts. I send a bill after each storm and they send me a check.
     
  3. johntwist

    johntwist Senior Member
    Messages: 415

    "Moose.......Rocco..........help the Judge find his wallet will ya......" :D
     
  4. The Boss

    The Boss 2000 Club Member
    Messages: 2,099

    One of the best movies of all time my friend. :nod:
    R.I.P Rodney. :salute:
     
  5. Boast Enterpris

    Boast Enterpris Senior Member
    Messages: 745

    If they are a random customer, I collect when I finish plowing the driveway! If they are a usual customer, then I bill them at at the end of the month & they send me a check.
     
  6. plowman350

    plowman350 Senior Member
    Messages: 125

    minority

    I seem to be in the minority, but I charge a seasonal rate. They pay the bill up front, and don't worry about it all winter. I plow when it snows. You must pay to be on the list. No collection problems ever.
     
  7. WELDER

    WELDER Member
    Messages: 50

    it snows. i plow. they pay. then i drink beer :drinkup:
     
  8. gene gls

    gene gls PlowSite.com Veteran
    Messages: 481

    Plowman

    How do you figuar a seasonal charge?? How often do you take the hit for extra snow? I have been toying with this idea but in New England it very's every year.

    Gene
     
  9. gogetter

    gogetter Junior Member
    from PA.
    Messages: 17

    "If they are a random customer, I collect when I finish plowing the driveway!"

    What if they're not home?
     
  10. cet

    cet PlowSite Fanatic
    Messages: 7,202

    For a seasonal contract sometimes you win, sometimes they do but over a few years average everything works out. If you have an average of 15 plows per year and you get paid per time and it only snows 10 then you are out the money for the 5 plows. If it snows 20 then you are only out your gas and time but atleast I know how much I am making. There are pros and cons for both. Some of each is always good but up here there are not to many per plow driveways. Someone always bitches and says it would have melted this afternoon or you just get to bed and the phone rings and the guy says are you coming.
     
  11. Dnipro Max

    Dnipro Max Member
    Messages: 60

    If seasonal than all up front, or half now and half after january 1, if per trip than pre pay for five trips, and than net 10 days or after each storm, or net 10 day, there is different ways u can get paid, so try what works for u best.
     
  12. computerguy

    computerguy Member
    Messages: 88

    Customer payments

    I bill after the storm. Payment due in 10 days. This way if they do not pay I don't plow. My exposure is limited. payup 2 years and no one has stiffed me yet. One cancelled after they saw the bill for 12" of snow. Now it is funny to see them out there shoveling a circular drive by hand :waving:
     
  13. bcf

    bcf Senior Member
    Messages: 206

    Some will give me a check right there and then, but most I invoice after I get some sleep. Usually get paid in under 2 weeks.
     
  14. plowman350

    plowman350 Senior Member
    Messages: 125

    gene gls

    It looks like someon already answered the quesiton, but I find that the seasonal rate works better for me and them for a few reasons:
    1. All $ in my pocket up front
    2. Customer doesn't have to worry about payments all winter
    3. No collection problems.
    4. Nobody ever calls and says "why did you plow, I could have done it myself at that price!"
    5. Never show up to a driveway and find it shoveled (homeowner saving a buck)

    All in all, it just works better for me. I have bills to pay that need paid whether it snows or not. This way, I'm getting paid regardless of weather. Could you lose out? Sure....but either way you go you can lose out.

    If you charge seasonally with little snow, you win! If it snows a lot, the customer comes out better.

    If you charge per push with lots of snow, you win! If it snows only a little, the customer wins.

    My point is, that either way you go, its a tossup. My theory is that my mortgage company doesn't care if its snowing....so my income shouldn't rely on the weather either. IF you keep the same customers for a few years, you'll win some, and so will they....it all comes out the same, but the payments are more steady and guaranteed this way. As far as how to calculate it: Depends on your average number of snow events. Where I live we average between 6-10 per season. So, I figure out my per-push and charge it times 10 for the entire season. You might work an extra night or two, or you might only work 5....in MI its hard to say.

    Some people do a mix and let the customers decide between push/seasonal. If you go that way, you'll be making money when it doesn't snow, and making extra money when it does snow.

    Happy plowing