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Q regarding billing commercial accounts.

Discussion in 'Commercial Snow Removal' started by 2moresleeps, Oct 4, 2006.

  1. 2moresleeps

    2moresleeps Senior Member
    from Ontario
    Messages: 131

    Last year we carried alot of overhead in terms of salting payments.

    Example: Storm on the 3rd or 4th or the early part of the month would run us $1700-$2400 per storm for salt. In december alone, I salted 9 times in my area and carried a rather large bill until each bill was paid.

    This year, we decided to receive payment 2 times per month. I have ony run it by 3 companies with mixed reviews.

    This is what we are doing this year:

    Payment due on the 15th of November for the start of the season.

    November 15 - monthly fee

    December 1 - salting fees

    Decemver 15 - monthly fee + salting fees

    January 1 - salting fees

    etc etc etc.

    My feelings are if a company is going to pay me, then what difference is it going to make whether they are billed once or twice per month.

    Last year, we salted a biz that changed ownership mid season, ofcourse we were not notified and were stiffed $1790 for salt. Not a big deal but this would surely eliminate anything of this nature happening again.

    This year, our properties are much larger than last year. We are NO LONGER doing ANY residential so this just seemed like the right thing to do.

    Too much for them (the accounting dept. for the commercial spots) to bear?
  2. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

    Bill early and bill often thats my motto! payup
  3. fms

    fms Senior Member
    from Maine
    Messages: 209

    It makes sense from your perspective, but keep in mind some companies only process payments 1 time per month. It may not make a difference
  4. 2moresleeps

    2moresleeps Senior Member
    from Ontario
    Messages: 131

    The companies I service write checks on the spot. I wouldnt consider it with another with an accounting dept. but I agree, it would depend on the company.
  5. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    if your buying salt as you go, why don't you have the salt company send you a bill, and pay them later?
  6. Rcgm

    Rcgm Senior Member
    Messages: 613

    Course it had mixed reviews because it was not in there benefit to pay 2 times a month. They want to pay net 30 not net 15 is what I see. But hey if you are giving a affordable service and good quality they will pay when you want them to pay if it is 1 or 2 times a month that is what I see in my business.

  7. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,859

    It's either that, or try to "approximate" how often you're going to salt. It's not TOO hard to do if you can get records of the weather for the last 5-7 years if you're rather new, or if you have your own records.

    Now you can take on an extra 10%, 20%, whatever you'd like to your total, and then tell them that you're going to send out one bill at the beginning of the month, for that months' work AND salt included.

    Tell them that this is based on averages over a period of time, take the weather (or your own) records in with you to show you how you got the numbers.

    Now you can get your money without waiting (hopefully) too long.

    This is what I do, however I'm also a one man show without the fear of blowing an employee / subcontractor budget out of the water.
  8. SwiftSnow&Salt

    SwiftSnow&Salt Member
    Messages: 51

    I had a similar problem last year and decided to change to a semi-monthly billing cycle...only one of my customers complained (out of 40+)