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monthly pay

Discussion in 'Commercial Snow Removal' started by wstwind, Feb 16, 2005.

  1. wstwind

    wstwind Senior Member
    Messages: 103

    up here we have found that by averaging snowfall and charging a minimum charge per month has saved us. we charge 1 snowfall per month if it does not snow. this makes sure that our bills are paid. does anybody else do this, if not why? :rolleyes:
     
  2. wstwind

    wstwind Senior Member
    Messages: 103

    is this a taboo subject???
     
  3. avalancheplow

    avalancheplow Senior Member
    Messages: 265

    I thought of it but wasn't sure of customer reaction to it.
     
  4. wstwind

    wstwind Senior Member
    Messages: 103

    i tell customers that it's like insurance and they can relate. i changed to this 3 years ago, and only had one customer that did'nt like it. after a little salesmanship he signed up. this may be something to think about. this year we have had the worst winter for snow in 50 years, this saved my a**!!!
     
  5. IndySnowPlow

    IndySnowPlow Senior Member
    from Indiana
    Messages: 214

    Wont happen in this area.....not enough snow. Seasonal contracts are a thing of the past unless you get atleast 2 plowable snows each month Dec thru March.
    My 2 cents
     
  6. bingermann

    bingermann Member
    Messages: 31

    Annual Contracts.

    I thought about doing just that. Rolling my snow removal into my annual landscape maintenance contracts and charging an annual rate. Problem is when it doesn't snow you make great money, but if it dumps hard a few times you are losing out on even greater payoffs. Tough decision to make. Annual contracts seem to do well in the New England area. Not so easy to sell here in Colorado.
     
  7. Dwan

    Dwan Senior Member
    Messages: 879

    Sounds like charging a retainer and if we all did it it would be a better world.
    Nothing wrong with a customer paying for reliability.
    I have 1/2 of a million dollars tied up in my snowplow business and if it don't snow it hurts. Retainers smooth out the edges a bit. The customer still gets what they pay for and if sold right should be happy.
     
  8. wstwind

    wstwind Senior Member
    Messages: 103

    all im demanding is the minimum gaurentee of 1 snowfall charge, not a monthly fee for all snowfalls. if it does snow i still make all my per time money. if it does'nt at least i can pay my bills. payup payup payup
     
  9. gt_racer50

    gt_racer50 Senior Member
    from Ohio
    Messages: 484

    It depends on where you are located, it would be a tough sell in Central Ohio, although I do have one customer on it. Figured 5 2" events per winter, so far in the last 5 years that she has been on it, I'm the winner. However the big buck places want to pay as they go, per event.
     
  10. Dwan

    Dwan Senior Member
    Messages: 879

    That is what I ment by a retainer as such. they pay for the first snowfall in advance and the rest as you go but there is no refund if there is no snow.

    so you apply that prepaid amount to there bill for the month and it covers the first snow fall only.
     
  11. wstwind

    wstwind Senior Member
    Messages: 103


    yes, however i do not ask for it up front as a retainer, i bill it as a snowfall, only if that month is "dry". also this is not a choice for the customer, it is my contract. has worked well for me. :nod:
     
  12. capital

    capital Senior Member
    Messages: 127

    I think some of you have the right idea. However I think you need to realize you do not want everyone paying a set fee per month or year. We have about 1/3 of our customers who pay a set fee based on averaging their bills over the last three years. Every June we re due the avg and it seems to work. If a new client whats to avg their bill we project for them and find most of them willing to show us their last three years bills. The other two thirds are billed either by hour, push or inch hybrid that we use. One thing to be aware of is that ice melt is the great killer or savior when figuring averages.
     
  13. wstwind

    wstwind Senior Member
    Messages: 103


    maybe i'm not explaining this right. this is not an average, or a seasonal payment or a averaged monthly payment. it is only a charge when it does not snow. 1 snowfall gaurentee per month. this has nothing to do with how they pay ie: monthly, seasonaly, or per time. this is a company wide contract subject. THIS IS ONLY IF IT DOES NOT SNOW AT ALL. does this make sense? :cool: :cool:
     
  14. avalancheplow

    avalancheplow Senior Member
    Messages: 265

    I know what you mean. If you have 10 clients that get charged $30 per push and it doesn't snow at all 1 month then thier bill that month is $30, so you get $300 that month still to pay bills.
     
  15. wstwind

    wstwind Senior Member
    Messages: 103


    AMEN. payup
     
  16. IndySnowPlow

    IndySnowPlow Senior Member
    from Indiana
    Messages: 214

    Lets compare apples to apples here...........

    Are you wanting to charge a seasonal price for "driveways" ? or commercial lots and roads (like HOA's) etc....

    On commercial lots & roads you will loose your azzz ..if you get any customers to go for it at all.

    For you solo operators doing residential driveways you might get it to work in your favor because thats all your doing is driveways. For us larger company's doing commercial work I dont think it would work at all. You might get a few to bite on some sort of "guarantee" in response time.
     
  17. grubenator

    grubenator Junior Member
    from wi,mn
    Messages: 21

    monthly contracts

    well i have 10 commerical contracts that pay a monthly fee, no matter how much snow falls we get so far this year we have had 4 snow falls of a 2in, a 8in a couple 3in, it really has paid off so far,
     
  18. jhook

    jhook Senior Member
    Messages: 375

    If you can make it work then more power to you. Would never work for us. I will work on a seasonal rate or a per push rate, I would loose customers pretty quick if I charged them a per push rate for no push. Too easy for them to just call someone else.