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I have a client who will willing to sign a contract but wants it revised first

Discussion in 'Commercial Snow Removal' started by Loni1113, Oct 2, 2008.

  1. Loni1113

    Loni1113 Senior Member
    from Utah
    Messages: 100

    I have a client that wants me to plow their lot. We have agreed on a seasonal price for an average year of 25 push's. She wants to know if I only have to plow 20 times if she will get compensation for the 5 times I didn't push. Is this standard practice to give a refund? I thought if they agreed to the seasonal pricing they pay that regardless of 20 or 30 push's?
     
  2. bigearl

    bigearl Senior Member
    Messages: 393

    Ask her if you plow 30 times if she is going to pay you extra? Then that will give your answer.
     
  3. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    AGREE with big earl......if she only wants to pay for 20 then she should pay you per push and not seasonal. Just remind her its based on the AVERAGE and some years its a few more and some a few less but it all washes out in the end. good luck
     
  4. Loni1113

    Loni1113 Senior Member
    from Utah
    Messages: 100

    so i wrote her back and told her the seasonal price is just that "seasonal", whether it be 25 push's or 35. If she would like me to write the contract differently I could but I would change it to a per push price which would be more than the seasonal per push price due to the fact that she wasn't signing up for seasonal pricing any longer. I also told her I thought it was in both of our best interests for her to go with seasonal pricing due to the fact we went off of an "average" snowfall for our area.


    Thanks for the help, I am very new to all of this!!
     
  5. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    If she agrees with a seasonal price, don't do it. Earl makes the point.....if you plow more than 25 times is she paying extra?? Most likely not.

    Does she call her insurance agent and ask for a refund because she made no claims this year?? Of course not.

    If she really wants a refund then stay with a per push agreement. Seasonal agreements should be open ended.........they agree to a price for the season whether you plow them 6 or 36 times. It is snow plow insurance (or assurance).
     
  6. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    Loni i think you said exactly the right stuff........seasonal is nice for both because it lets everybody know what to expect for the season......except the snow of course. Looks like you've got it though good luck!!!!!!!!!!
     
  7. Loni1113

    Loni1113 Senior Member
    from Utah
    Messages: 100

    Thanks again everyone. What fast responses! Again, I am very glad I joined this forum.
     
  8. bigearl

    bigearl Senior Member
    Messages: 393

    you might regret that statement someday!
     
  9. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609


    just to make her happy i would agree to giving the refund but also limit it to 25 pushes and explain to her after that it would x amount per push.
    i have no trouble giving a refund just want to be sure im paid for the work i do.
     
  10. TLB

    TLB Senior Member
    Messages: 274

    Not a bad idea
     
  11. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    that might not be a bad idea but it sure isnt a good one...........................i think you guys are missing the whole point of commercial seasonal snow plowing. if you only want to get paid for what you do then you use the per push method.....IMO i think he is making the right call by not even debating the refunding issue.
     
  12. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    unless she says forget it i will find someone else.
    The point of any of this is to get paid. You can say this way is the right way, that way is the right way, but its really all bs because you do it to get paid. Some people have issues with refunds because when it comes time to give one they dont have the money. As long as you get paid, and the customer is happy and keeps paying you. Who cares. Often if you make the customer happy and give a little you can actually charge them more and end up better off. Obviously she brought it up because she didnt want to be taken advantage of and wasnt sure how many times he would have to plow in the season. Her concern isnt abnormal and if it can be worked around then they will both be happy and that is the best business deal, when both parties come aways satisfied. Or he can stick to his guns and she can find someone else to deal with she is more comfortable with and they can have her pay them instead.
     
  13. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    almost all commercial accounts i have ever bid on want one thing, "a seasonal contract" it lets them know exactly what they are getting into this winter. why would he want to give up a seasonal spot on his list to some lady who at the end of the season wants money back if he wasnt there exactly that many times. sure its all about getting paid for but do you think his insurance copy calls him at the end of the season and says its been a light winter we wanna give you some of your money back. i think that should help a little
     
  14. BMWSTUD25

    BMWSTUD25 Senior Member
    Messages: 630

    insurance company* oops
     
  15. bigearl

    bigearl Senior Member
    Messages: 393

    I think if she is going to be a pain in the a$$ now wait till the snow starts to fly. She will be a royal pita then.
     
  16. tls22

    tls22 PlowSite Veteran
    Messages: 4,263

    Nice Earl, ur a post who*e today!:waving:
     
  17. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    WOW , you guys are all silly


    heres really whats going on , and you all need to just learn to look through the BS.

    If she expects a refund, for service that isnt preformed.... IE 25 plows vs 20 = 5 refund

    then really what she is asking for is a per push serivce. she only wants to pay for what she gets.
    as most of you stated the correct work around for that is as follows.

    1. i have it asked of me many times. In fact i win alot of bids, simply because i dont put a "cap" on my number of services... so when they ask , "well do i get a refund...." i say well, your price is based on an average amount of snow falls, If your willing to gamble , and ask for a refund... then if i plow more than XX , Are you willing to pay me more? ... i simply tell them , that if they are willing to "gamble" one dirrection , they must also do it the other way... so if they ask for a refund, then i tell them sure, but you get a Cap as well.... " the coin is two sided"...but its there choice

    2. for you all, understand this.... At that very point, you are no longer dealing with a "seasonal account" -- you now have a per push account, reguardless of how the contract reads or how they are billed, and how they pay.... you now must base your income off each snow strom.

    you can tell her that as well, then ask if she would like to simply be billed per push , or if she would like to pay a fixed "seasonal rate" or a monthly rate, and expect either a refund , or additional billings in March/April ------ its more like , what do you as the contractor want for cash flow.... it might be a per push account, but it may pay just like a seasonal , difference being you better be good at saving money incase that refund is needed.... Either Way , how ever you do it, if your willing to give a refund/place a cap , and you now have a PER PUSH ACCOUNT. Regaurdless of the payment terms or what the contract reads.


    PS, for accounts like these i recommend a "retainer contract" kinda the best of both worlds... they pay a small monthly fee to retain my equiptmewnt and services, then they pay per push , at a very low rate... there is less to win or lose on either side -
     
    Last edited: Oct 2, 2008
  18. tls22

    tls22 PlowSite Veteran
    Messages: 4,263

    No ur silly..... silly.........:p
     
  19. bigearl

    bigearl Senior Member
    Messages: 393

    we didnt ask you to reinvent the wheel.
     
  20. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    ididnt reinvent anything, nor did you , im just stating , word the contract anyway you want, and bill the customer any way you want , at that point its a perpush account.