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how to collect $$

Discussion in 'Business Fundamentals' started by rayf268, Oct 24, 2006.

  1. rayf268

    rayf268 Senior Member
    Messages: 117

    well I am about to go start bidding on residental driveway and walks but don't know how to collect the $$ how does everyone here get the green in there pocket from residental customers .
     
  2. cjasonbr

    cjasonbr Senior Member
    from Mass
    Messages: 635

    Probably by billing them and getting paid with a check............ just like every other reputable business!
     
  3. Rcgm

    Rcgm Senior Member
    Messages: 613

    Mail them a invoice. They should send you a check or knock on the door and hand them a invoice. I mail all mine the day after I plow.

    RCGM
    Brad
     
  4. EnviroTeam

    EnviroTeam Member
    Messages: 71

    I get half the seasons worth at signing, and take two post dated cheques for the rest, one dated Jan 1st and one Feb 1st.

    No billing, no waiting, no fuss.
     
  5. THEGOLDPRO

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    i have all my invoices on my computer with sep folders for each client, then i fill them in, print them out, toss em in an envelope with another self addresed envelope, and mail em out, i usually get them all back 3-5 days after i mail em.
     
  6. ksgcapecod

    ksgcapecod Member
    Messages: 52

    I just send the bill after each snow storm for both my residential and commercial customers. If your running a business remember to keep all your receipts from envelopes, stamps, etc. for tax deductions purposes!!
     
  7. tjlands

    tjlands Senior Member
    Messages: 575

    walk up to the door and say hand over the loot:gunsfiring: :eek:

    just kiddin had to do that
     
  8. itsgottobegreen

    itsgottobegreen PlowSite.com Addict
    Messages: 1,351

    Credit card machine. Period, only way I do business with residentials.
     
  9. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,445


    That would be slick, but how much is the credit companies cut(charge)?

    And does your machine work all of the time?
    How much do you pay to be able to take credit cards?

    For Residential customers...In God we trust!! Every one else pays cash!!!
    For commercial customers.. business cheeks,, their cheeks are always good...

    Residential pay first then get plowed. I only have a hand full of them. I find it much easer to deal with commercial customers.
    Commercials are billed monthly.
     
    Last edited: Oct 29, 2006
  10. itsgottobegreen

    itsgottobegreen PlowSite.com Addict
    Messages: 1,351

    3.7% of each transaction. So basically I just charge 5% more than I would if I was taking a check. $300 for the machine from bank of america merchant services.

    Sanity from not having to worry about bad checks. PRICELESS!!!!!!!!
     
  11. Rcgm

    Rcgm Senior Member
    Messages: 613

    My brother takes credit cards for his heating and air business.I have never thought I needed it because people save up for landscaping snow removal etc.You never know when your car is going to break down or your furnace is going out.

    Just my opion
    RCGM
    Brad
     
  12. Keith_480231

    Keith_480231 Senior Member
    Messages: 389

    So you are saying that on your residential's you charge the whole season on their at once or do you split up into payments ( which would end up costing YOU more but safer than bad check). How about salt do you charge seperately for each app.?
     
  13. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    You invoice after each push?


    I invoice once at the end of the month.
     
  14. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876


    So people have their checking accounts all fouled up for3 months?

    Id never post date a check, let alone for 3-4 months out.

    wow....
     
  15. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    Maybe Im crazy but theres some wacky billing procedures going on.

    sheesh.
     
  16. rcpd34

    rcpd34 Senior Member
    from MD
    Messages: 670

    All signed contract customers get an invoice mailed the next day at terms 30 days net; except one who is on cash terms due to past collection problems. Last minute callers (If I take them) are on a COD basis. i do accept credit cards too.
     
  17. B&E snowplowing

    B&E snowplowing Senior Member
    Messages: 159

    Basicly for residential customers, I have them sign a contract and issue a cheque for the entire season up front. I have NEVER had any problems with this in all the years I've been plowing.

    For commercial accounts I have them sign there contract, and I issues billes monthly. Normally I hand deliver each bill on the 15th of the month and then they either mail me a cheque or I pick up the cheque on or before the 1st of the month. If I do not receive a cheque, they do not receive any plowing services.

    This practice seems to work well for me, as the customer I have, I have had for the past 3 to 4 years. This year for example I was only able to take on 2 new accounts as all my spots were filled up from last years customers.
     
  18. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    It's all about demographics. :D :D

    How to collect money, first of all you start off with a signed contract stating how much the charges--per push, inch, seasonal, whatever--will be. Then you state your terms on how and when the money is due. Then you follow the terms of your contract.
     
  19. jcesar

    jcesar Senior Member
    from Mi
    Messages: 492