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I am Not Getting Paid as agreed upon -- NE OHIO SUB's

Discussion in 'Employment' started by AESC, Feb 14, 2009.

  1. AESC

    AESC Member
    Messages: 52

    Anyone else out there not getting paid as promised. We are to get paid on the 15th of the following month in full for our work.
    I am a sub in the east side of cleveland along I271 from a large company. they are only paying half of what they owe me for Jan. my total is around 3K. I got a call last night that they will send me half now and the rest in a few weeks.

    That is not how to run a business. Anyone Else having trouble collecting?
    Or the company they work for shorting them money.
    when my personal accounts dont pay in 15 Days they are charged a 5% late fee.
    I know a few guys on here plow for the same company as me.
  2. Snow2Go

    Snow2Go Senior Member
    from Chi
    Messages: 223

    Make it public and put some pressure on them.,
  3. kashman

    kashman PlowSite.com Addict
    Messages: 1,070

    my buddy subs for a guy on the eastside with 0 problems.
  4. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Is it your first year with this guy ? I know here we had a ton of snow in Dec./ Jan, most of my stuff is seasonal we've had nearly a full seasons worth of snow & I have some accounts that have yet to pay me, some have only paid 40%, some more. But all my subs are nearly paid in full, I get a check, cut checks. Before you condem them, talk to them to see what is going on. Would you rather get bad checks ? I have also been on the other end, so I know where your coming from I'm owed over $ 8,000 from a management co, some dating back to last snow season. Thats al MY MONEY, bills on that were all paid, so I completly understand.
  5. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,868

    no that is not how I run a business but sometimes its easier to cut a little slack. maybe they have low cash flow becuase none of their properties have paid them yet. you really never know, why dont you call them and ask politely if there is a problem. if there is no problem then you can get hostile.

    if you are really having a hard time getting paid, hire some "business associates" to help get the money flowing.
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Like Guido?:rolleyes:
    Last edited: Feb 14, 2009
  7. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,868

    actually its "Guido" but thats okay :p
  8. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Thats how I spelled it LOL
    Last edited: Feb 14, 2009
  9. KGRlandscapeing

    KGRlandscapeing 2000 Club Member
    Messages: 2,660

    something is better then nothing. thats why you have to have some cushion in the accounts at the bank
  10. AESC

    AESC Member
    Messages: 52

    well i run my own business. and i know how hard it is to manage accounts. but i also know that you dont tell the subs a day before they are expecting a 3K check they are only getting half.
    If they had told me earlier i could plan accordingly. my truck is currently broke down and i need those funds to repair my truck or purchase a new one. and they cant even give a time table when we will get paid next just saying they will in a few weeks. but they still want us to work. whats going to happen next month. will we have to wait over 30 days.

    I plow in the winter to help due to slower sales but i have my own overhead to pay every month. i budget everything. that was part of this months budget and now i have to pull from my savings. not something i like to due in this economy.

    I am a property manager and know how to collect if it has to come to that. I have ways to get my money if it comes down to that.
    Last edited: Feb 14, 2009

    SNOWPIMP Member
    Messages: 89

    I wish I had that problem I owe a Guy like $1,100 for doing some sub work and he won't answer his phone for 2 weeks now. The Kicker is I was gona pay him early now it would be late ! hahaha
  12. fisher guy

    fisher guy PlowSite.com Addict
    Messages: 1,068

    wow thats a new one
  13. procut1

    procut1 Senior Member
    Messages: 380

    In an ideal world all contractors would have cash reserves and lines of credit, they would all pay on time, the customers would all pay on time, and all would be great.

    Payment has gotten very tough in this economy. The cutback on credit has been disastrous for many companies.

    For example, for years my company had a large line of credit with a perfect payment history. All of our snow work is seasonal contract, so its very common to spend more in the early months than you take in. Then the last couple of snow payments when it doesnt snow is where you catch up and show your profit. I always had that line of credit so if my contracts paid late, or we had a heavy winter, i could still pay everyone on time and pay the bills.

    One day out of nowhere, the bank called the line of credit. There was no reason for it. They were just doing like all the other banks are doing and limiting their exposure.

    Well after 10 years of having this line, I get it pulled with not so much as a day late payment.

    This happened after I made my commitments for the winter, after I had just ordered a winters worth of salt, after I committed to subs.

    Now add to that we have had a very busy winter. The accumulations have been light but the durations have been long. 2 inches of snow take 20 hours to fall mixed with sleet and deep freeze temperatures. So between salt, sidewalk salt, laborers etc, money has been flying out the door. Combined with this season being extremely early, a lot of events early in the season.

    So now spending much much more than the early customer payments covered, and not having the line of credit that was planned for, and salt prices double what they were last year, and material use far beyond budget, its become impossible to pay all obligations on time.

    Now add to that the customers who have always paid ontime for years, are having trouble collecting themselves. They no longer have their lines of credit, their residents are paying late...etc.

    So it comes down to I cant pay my bills because my customers havent paid me and they cant pay me because their residents havent paid.

    Nobody in the whole line has bad intentions. Everyone wants to pay but just cant. This was our thanks to bailing out the banks.

    Now it comes down to what makes sense.

    If I have to pay employees a little late...should they quit? Well with unemployment and layoffs by the millions, that wouldnt be too smart to leave a job when they most likely wont get another.

    Should I cancel the contracts with my customers? Well they always do pay on time, I know I will get paid, and to hold the hard line and sever a relationship when there are 100 new startups in my area who would drool to get the accounts would come back to bite me.

    Everyone has good intentions, everyone wants to pay, but with the economy the way it is everyone needs to be a little flexible.

    Its not a good feeling owing money.

    CARDOCTOR PlowSite.com Addict
    Messages: 1,304

    PRO CUT took the words right out of my mouth

  15. M&M

    M&M Senior Member
    Messages: 312

    Well said Procut1. This economy was built on credit in a BIG way. I think we can all learn a good lesson from this by limiting our own exposure just like the banks. I have been billing more often and collecting anything I can. I put in a late payment fee (very small %) this year also. Most customers don't care because they pay right away, but I have a few that needed the kick in the butt and I think it's working in my favor.

    All businesses try hard to collect receivables as soon as possible and pay out payables as far out as they can. That is creating your own credit without using a bank. Now, there is a fine line to walk using this tecnique because you need to keep your subs and vendors happy.
  16. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    i friend of mine that owned a multi million dollar biz before he died told me to always keep a balance on your line of credit, never pay it off completly. his reasoning was that if you owe them some money they will leave u alone. if its paid in full and not used for a period of time they can cancel it. i usually keep between 500-1000 balance on mine and never had a problem.
  17. The main factor in all of this is COMMUNICATION between the genral, customer or sub whatever it may be as long as every one in the loop knows how, when, where, why all should be able to make arangments that work for everybdy involved. For example you owe me X Can you give X to get me by until X for the rest.
  18. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Sure, comunication is great. Get a check, it bounces, then next week, I'll let you know how much, next week, next week.... you get the picture.
  19. mksuwndr

    mksuwndr Junior Member
    Messages: 20

    Crete you shouldnt talk about guido, because that means he would be after you. I think you would communicate with your subs about payment instead of ignoring them.payup
  20. Get the picture. That sucks I guess it's time to find a good genral