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I will let you know what happens....

Discussion in 'Commercial Snow Removal' started by thelettuceman, Mar 2, 2014.

  1. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    ... expecting heavy snow fall in the Baltimore, MD area. I invoice after each snow plow. It's been over 2 weeks and I have some unpaid invoices. I do not plan to show up and plow for those that owe me. If they call and offer to pay in full when I arrive, I'll take the money and plow. One person told me that she lost my 1st invoice. Okay, I can believe that. She called to have her driveway plowed again. I am thinking >>> If you lost my invoice, you could have called for a duplicate. >>> No, you just call when you want your driveway plowed. Not this time!!!!
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    All I can say is seasonal contracts:)
     
  3. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    lettuce know! 2 weeks and you're shutting them off?! I don't think I'd have customers
     
  4. JohnDeere2320

    JohnDeere2320 Member
    Messages: 51

    I invoice at the end of each month, and have 30 day payment terms. Which means if we plow on the first of the month, we could go 60 days before getting paid for it. You may be a little optimistic expecting to get paid by 2 weeks after a service. I know it can take a lot of funds to bankroll a snow removal operation especially in a winter like this one. It may be a little inconvenient for your customers to have to write, say, 6 checks a month as well if you invoice after each storm. I think people like to anticipate when their bills are due. They know when their electricity, water, gas, ect bills are sent each month and know when they are due so they can plan when to send payments out. Getting a number of invoices per month from one company can lead to a lot of paperwork and lost bills.

    I really am not trying to pick on you, but maybe you could save yourself and your customers some headaches if you were to invoice on a more set schedule.
     
  5. thelettuceman

    thelettuceman PlowSite.com Addict
    Messages: 1,216

    Grandview: This is where you and I disagree. There are certainly advantages to both. I prefer my method.
    Nepatsfan & John Deere: You both make valid points ... stay tuned .....
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    By the way,2 weeks is nothing.I'm surprised if I get something back so soon.
     
  7. Snow tracker

    Snow tracker Senior Member
    Messages: 126

    Soooo.. Are you changing your billing now? At the end of the snow season? Do your customer know what is expected of them? I have some customers that use a service to pay bills and it only happens once a month. I know I would hate to write that many checks a month. It sure would help cash flow to be paid often though. Keep us posted on how it works out for you. We all may learn something new. Good luck
     
  8. scott3430

    scott3430 PlowSite.com Addict
    Messages: 1,005

    To each his own Lettuce. If I have a big snow month I can bill a few commercial customers 2/ a month. But I think all my other customers like the stability of a set snow bill getting to them around the first of each month.
     
  9. allagashpm

    allagashpm Senior Member
    Messages: 703

    That's crazy lol..did you send any follow up inquiries? You will probably lose those customers and will probably not recieve what is owed
     
  10. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,770

    2 weeks and you are cutting them off???? LOL Are you serious?


    I assume you dont dabble much in the commercial side of this business. I have customers that are current on their bill and they still owe their December bill... thats 11 weeks behind.

    If I had 2 week pay terms I would have only a couple customers......If I was lucky.
     
  11. UltraLwn&Lndscp

    UltraLwn&Lndscp Senior Member
    Messages: 138

    all I can say is wow. Per storm invoicing is something I can't fathom. You must have 6 customers. Stamps are pushing $.50
     
  12. M & MD Lawn

    M & MD Lawn Senior Member
    Messages: 361

    On small per push accounts I bill per storm, now larger businesses I agree with a set billing cycle which for me would be monthly.
     
  13. Triton2286

    Triton2286 Senior Member
    Messages: 654

    People still send invoices through the mail?
     
  14. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    Thumbs Up:whistling:

    I didn't realize it was that absurd but I suppose in this day and age, if it isn't, it's probably getting there.
     
  15. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    My customers would fire me if I invoiced per storm.

    And I can't even imagine how I would have been able to send that many out. Dec-January I would have been invoicing just about every day. Pretty sure no one wants 50+ invoices, 4 was just fine with them.
     
  16. Mike_C

    Mike_C Senior Member
    from Jersey
    Messages: 135

    Two weeks and you're cutting them off? Wow, hope you're ready to lose those customers. If I cut people off after two weeks my trucks would all be sitting at my yard with nothing to do whenever it snowed. I don't know who would be more pissed at me if I invoiced per storm, my customers for hitting them with 20 something separate bills or my secretary for having to send them out
     
  17. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    Question for you lettuce, what does your contract state?

    I assume (lol) you have this all spelled out.
     
  18. Omega

    Omega Member
    Messages: 67

    know the feeling

    In this area a typical winter is 4-5 events of 2-3" and that has been true for the last couple years. We handle both commercial and residential, my commercial are net 30 and my residential are either on the spot or at the end of the season(maybe $200) so I can see how it might be overwhelming this year. I suspended service to Royal Farms(gas/quick stop) since they started randomly shorting my invoices( over $8k):realmad: and stretching out the payment time(60+) The strange thing is they have yet to explain or respond to my emails or calls.....I have a feeling they might come around with todays snowpayuppayup
     
  19. Wilnip

    Wilnip Senior Member
    Messages: 583

    Wonder how you would feel if your water company sent a bill after every shower? Or you got a heating bill after the furnace turned on? If you are running a business, treat it like a business.
     
  20. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    We invoice every few events, large storms try to do every event..

    We do it to keep $$$ rolling in.. Some properties rack up a 5k invoice in a event, i couldn't see letting that build up and send them a invoice for 50k..

    My big contracts are 45 day pay, still have two huge ones i haven't seen any $$ all season.