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Payments

Discussion in 'Commercial Snow Removal' started by Theshoemaker, Jun 23, 2010.

  1. Theshoemaker

    Theshoemaker Senior Member
    Messages: 207

    Hello, just wandering if anybody gets a percentage of contract price apoun agreement. For example if i had a 20,000$ contract, would i be able to receive 2,000 (10%) apoun them signing the contract??? If yes, after that, do you divide the balance into the term left on contract?? Example:
    20,000 seasonal contract
    2,000 paid when contract was signed
    -------------------------------
    18,000 remaining
    Divide that by 5 mnths nov-apr.

    (5) 3,600 monthly installments???
     
  2. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    New clients get billed 1st up front (on signing).

    Salt-extra contracts get billed monthly for plowing, salt every two weeks.
    Salt-in contracts get billed monthly.
    All are billed at the beginning of the month, due by the end.
    No pay = no service next month.
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I do mine in 5 payments ,so the most you'll get burned for is 1 month.Of course it never has happened.
     
  4. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    We divide seasonal contracts into either 5 or 6 equal payments. First being due in November. Salt and bagged product in addition to the contract payments normally every other week.

    If they sign up late (in Dec) two contract payments due upon signing. If they sign up real late (in Jan) three payments due upon signing.

    We do show flexibility and have clients that stretch payments out to 120 days....some even longer.
     
  5. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    So you're a bank too?
     
  6. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    Hahahahahahahahaha...:laughing: Aren't we all to some degree?

    Actually, selective flexibility has proven to be beneficial to both parties.
     
  7. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i agree with both points, my point of view is, people who can't pay net 30 days, pay higher rates.
     
  8. Theshoemaker

    Theshoemaker Senior Member
    Messages: 207

    Formula to make a seasonal contract

    Hello all, i have seen a basic equation that i have seen and have experimented with and it follows as:
    price per push x magical number of pushes = seasonal price to plow property

    Ok, so i was thinking, how many inches are you qouting the per-push??? I know it will take less time to plow 2 inch event as opposed to a 6 inch storm. So, if you bid the per push at 2" x the magical number you would get a price, but what if most of your pushes are 4-6 inches??? That would take more time therefore you are going to lose money because you bid the job at say 4 hrs at 2" rather than the 6" that has been occuring.

    Basically i'm asking how to get around this situation. Do i bid it at 4" or 2" or what as my base per push.

    Thanks again
     
  9. Theshoemaker

    Theshoemaker Senior Member
    Messages: 207

    oops disreguard last post i meant to post new thread
     
  10. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    That "magical #" needs to be based on the number of pushes you have done on average in years past. Seasonal pricing is not for someone without good information of seasons past. Total annual snowfall means nothing. You gotta know your # of pushes.
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Bid it seasonal!