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Payment reductions....any thoughts ?

Discussion in 'Business Fundamentals' started by On a Call, Feb 25, 2015.

  1. On a Call

    On a Call Senior Member
    Messages: 760

    Long standing, good paying customer.

    The last two seasons have been very heavy with snow and ice.

    We had a meeting regarding their bill. Last month it was 15,650.

    He asked if I could do 15,000 due to it was blowing the budget out of the water.

    My thought is...what if I skipped a couple plowings and did not charge..

    Seriously how should I approach and keep him happy.
     
  2. On a Call

    On a Call Senior Member
    Messages: 760

    The way I look at it is....what if I told my subcontractors....I owe you 1500 would you take 1400 :)
     
  3. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    They going to pay your overhead next year if it doesn't snow? Not a chance. Pay in full, let's talk about a seasonal contract for next several seasons. If you set a precedent now its never going to end. JMO
     
  4. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,487

    Give them the same song and dance right back.
    Not receiving the AGREED on amount is sinking your budget, it's been a tough winter for all.

    Set them up on a payment plan at 2% interest.

    ho ya, what does your contract say about payments?
     
  5. jasburrito

    jasburrito Senior Member
    Messages: 118

    I would do the 15000 for cash. Otherwise they need to pay there bill
     
  6. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,675




    I would approach him with the Bill is $15,650....I will take the $15,000 now and finance the remainder at whatever percent you deem reasonable...

    The problem with people is they view the Snow removal/Lawn-Landscape bill as very low priority...Last bill in the pile...But these same people are usally the first ones to ***** .....:help:
     
  7. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    BINGO! My thoughts exactly!
     
  8. On a Call

    On a Call Senior Member
    Messages: 760

    Thank you Guys...

    all worthy thoughts

    I was almost ready to say lets spread it out over the next few months at 2% a month.

    The contract did not have a " if the payer wants to reduce the bill clause."
     
  9. On a Call

    On a Call Senior Member
    Messages: 760

    Thank you again...

    off to repair my truck, plows, bobcat, load some salt, and lets see...work for 8-10 hours with 4 guys not making money.
     
  10. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,487

    no late payment, failure to pay in your contract?

    Is there a renegotiation of fees clause"

    U better get that in the next contract.
     
  11. On a Call

    On a Call Senior Member
    Messages: 760

    Snow... I have no idea where or how to approach that sort of clause ?

    Perhaps I need to dive into the archives here for a good contract.
     
  12. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,487

    which lead to my next post..

    I was being a little sarcastic and serious.

    As in , is there renegotiation clause....
    I take it the answetr is , No.

    so why are you?

    Explain it to them,
    Tell them you gave them a very competitive price and that their business means a lot to you.
    but the price is what WE agreed on.

    You preformed the work , professionally and in a timely matter.
     
  13. ShaneysLawnCare

    ShaneysLawnCare Senior Member
    Messages: 144

    Its kind of amazing at the audacity of these larger companies complaining about a small amount of money on such a big bill I get it there are budgets, we hold a couple state contracts that have gone over budget. They dont complain they pay it and figure out how to change the budgets on their end to continue to have a safe parking lot (campus) Just tell him $560 is cheaper then a slip and fall.

    Edit* But that conversation about budgets and money are always the hardest ones to have. Because its normally the ones that upset tempers the most.
     
  14. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,675

    ................:drinkup:

    two-dollars-tip.jpg
     
  15. jasburrito

    jasburrito Senior Member
    Messages: 118

    Actually that's a small percentage. I would take the 15 and be happy I got paid. But that's prob why my business (not snow related) cannot get ahead. I had a dream. Plowsite rules. Cheers.
     
  16. derekslawncare

    derekslawncare PlowSite.com Addict
    Messages: 1,003

    THIS EXACTLY. If it's been hard on their budget, I'm sure it's been just as hard on YOUR repair budget. This isn't "Let's Make A Deal". Further more, this **** didn't "just happen". He's seen the storms, he's seen the snow, he should be expecting the bill for said snow. He could have called if he was concerned about it and asked what his account balance was at and asked if you could cut back on service to keep cost down. Did he do that, of course not? He was more than happy to let you keep working. Shouldn't be a surprise. Pay up.
     
    Last edited: Feb 25, 2015
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Someone beat me to it,seasonal. This way they know before the season starts as how much to budget. In fact,work one up now so it gives them a few months to figure it out.And was was last months bill?
     
    Last edited: Feb 25, 2015
  18. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,675




    Get PAID first...Then I think they are a prime candidate for a "Seasonal" discussion......:drinkup:
     
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    But they should first PAY him before talking seasonal contract with the first payment PAID upfront
     
  20. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,675




    Might be tough to get the first PAYMENT PAID.....People don't like to PAY upfront.....I agree. The contractor needs to get PAID...:drinkup: