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I'm fairly new to the business, please bear with my questions!

Discussion in 'Commercial Snow Removal' started by Green Pastures, Nov 27, 2008.

  1. Green Pastures

    Green Pastures Junior Member
    Messages: 4

    How long do you give commercial clients to pay after a plowing event?

    Would you plow again if the first bill was unpaid?
  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    I am just a small 1 man show and I am currently doing a seasonal charge for all of my customers, commercial and resi. Driveways pay up front for the season. Commercial lots can pay upfront for a small discount, or I split the seasonal charge into 4 equal payments, billed November, Dec, Jan, and Feb. No problems for me so far.

    The reason I do it that way is becuase I hate paperwork, and it is convenient for everyone.

    To answer your second question I would need more info... how long has the first bill gone unpaid? How much do they owe you? Do you think they will pay? The way it snows here, I might have to plow 3 nights in a row, so there is now way they could get payment to me that quickly.
  3. Green Pastures

    Green Pastures Junior Member
    Messages: 4

    I'm in Hampton Virginia, it MAY snow here once or twice a year. Seasonal billing is out of the question.

    We bill by the hour based on amount of snow we get.

    Sometimes we get an inch or two the most I've seen was a foot. It was gone in 4 days without any plowing or salting. It just melted due to temps.

    Please keep this info in mind.
  4. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    Well if I was in your shoes I would be stopping into that business during business hours and asking for payment.

    If you have a signed contract I would do the work so that they can not hold you liable for not doing the work you committed to do.
  5. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I have a clause in my contracts that say all invoices past due by more than 30 are subjct to a finance charge of 2% monthly, and snow services will be done at my discrection. This allows me to still plow if I know I am going to get paid, or I if I feel I will be screwed, it allows me out of the contract so I am not losing more money.
  6. Green Pastures

    Green Pastures Junior Member
    Messages: 4

    I will have a contract that I will be the snow removal contractor, I'm just trying to get ideas for the "fine print" of the contract.

    My per hour rates are firm, as I know my costs.

    Please keep in mind guy's that I'm in south eastern Virginia and as I said before we MAY get 1 - 3 snow events per year that actually accumulate.

    So this is not a big operation for my business.

    In fact, MUCH of the snow removal in this area IF it ever get's serious is brought in from points north and west of us.
  7. Green Pastures

    Green Pastures Junior Member
    Messages: 4

    Thought it might help to know that I'll be "plowing" with my Cat 257B.