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Have you heard of this?

Discussion in 'Bidding & Estimating' started by MSsnowplowing, Nov 7, 2013.

  1. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 687

    I get a call to put a bid today at a place.

    They want a 2 inch trigger, plowing and salting, no sidewalks.

    Pretty easy setup, a little bit of pita because they have parking on both sides of the road.

    So I'm working on my numbers and I get a call.

    "I forgot to tell you, our billing cycle is 120 days"

    I had to think about that and then was wait a minute, thats 4 months.

    So if I plow 3 times in December, I get paid in april,

    I plow 6 time in March, I get paid in July.

    I have never heard of a billing cycle so long before.

    Has anyone else run into something like this?
  2. ProperLandscape

    ProperLandscape Member
    Messages: 90

    A lot of tier one and two auto suppliers are on 90 day billing cycles that end up being 120 days by the time they actually cut and mail the check. This is assuming you have the correct purchase order number on the invoice and they don't loose the first copy you snail mail into them. Forget about getting a check in December before 4th quarter financials are released, not going to happen. This is the only instance i have run into a lengthy billing cycle. Most places are net 30.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Call back and tell them your 10 days,if they can;t do it ,good bye.
  4. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 687

    I sent them the bid and told them unless they did a 30 day cycle, I was not interested in plowing for them.

    We shall see. I should know in a few days and will update.
  5. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Yeah, I would have told them I was swamped, and to call ______________<-----enter some local dub's name who has a 1987 GMC half ton and a 7' myers plow plow.
  6. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 687

    I will give them Grandviews number.

    :laughing: :laughing: :laughing: :laughing:
  7. BC Handyman

    BC Handyman PlowSite.com Addict
    Messages: 1,838

    now now, we all know GV only does ford & boss
  8. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,512

    Sorry to anyone that's working under those terms, but NFW !

    They would be looking at my butt cheeks wiggling as I quickly turned and walked away from that bologna..... My terms, or no terms.... That's insanity to wait 4 months to get paid. Hell, I could be dead in 4 months, and then they don't have to ever pay me....xysport
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Could pull out my72 Bronco with a manual straight blade.
  10. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,390

    Hold the boat GV....u have 72?

    My First plow truck was a 74. I still have a 77.

    Sign them up as a seasonal....
  11. bhmjwp

    bhmjwp Senior Member
    from kcmo
    Messages: 309

    For us, we do a lot of commercial annualized billing. Lawn-snow-chemical. No problems, just figure you price, add 15%, and budget yourself accordingly. The good news is, accounts get hooked on this, and few competitors will bid, as you see above.

    I gave up in the 80's thinking I could change corporate policies. So I worked them to my advantage.

    It takes lowballing and beer money pushers out of the game!
  12. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Wise. Turn problems into benefits.
  13. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    I agree with the above. If you know ahead of time the terms you can be prepared for it. Add a little percent onto your pricing for playing banker. If you're the type of operation that runs check to check to keep gas in the truck this probably won't work for you.
    Last edited: Nov 8, 2013
  14. MSsnowplowing

    MSsnowplowing Senior Member
    Messages: 687

    If it was seasonal that could be done and yes I offered a season rate but they were not interested.

    They will only do per storm, 24 hour operations for them so I could be called at anytime day or night to come salt because of slipperly conditions and a hill.

    So they want me on call for 24 hour service for salting, but want to wait to pay for it for 4 months, not happening.
  15. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Though I posted that I agree before.......I also hate walking away from what could be lucrative work....Would it really be so bad to make a bit more than standard, and have "money in the bank" so to speak? Getting a check in the mail in June for $500 would not be so bad..as long as you can bankroll it until then.
    They need to understand, standard interest rates would apply for using your money for 4 months...I bet the point person there understands.
  16. buildinon

    buildinon Senior Member
    Messages: 583

    I agree with this as well.
    We work on a very similar pay out to this with our largest client. I have been working with them for several years, and at first it was a 60 day pay out. Then they did a corporate restructure with a new CEO and what not and it went to a 90 day for the last 2 or 3 years. But the money is there when it is supposed to be. If you can swing it, and it worth your time then do what YOU need to do.
  17. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,768

    EXACTLY. We have several that pay 60 a few that pay 90 and 1 that pays 120. Its nice to receive large snow checks in the summer. As long as you know going in and price it correctly its not bad at all. Also keeps the lowballer guys out