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slow paying seasonals

Discussion in 'Commercial Snow Removal' started by hosejockey4506, Jan 25, 2012.

  1. hosejockey4506

    hosejockey4506 Senior Member
    Messages: 230

    With this slow winter i have had nothing but problems trying to get paid and my seasonal's are the worst ones.

    any tips or tricks you guys have used to get paid.

    at the end of the month on tuesday my plan is to send out letters stating there properties are no longer going to be serviced with out payment in full.

    i did five payments with december 1st being the due date for the first billing so basically the ones in question will be three months behind as of next tuesday.

  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    No real problem with mine. As long as they are with in 30 40 days I'm good. Just send them out again with all 3 payments do. I'd make a courtesy call to them in a couple of days.
  3. justgeorge

    justgeorge Senior Member
    Messages: 223

    What does your contract with them specify for late payment fees? I'd think telling them their property won't be serviced won't help much, they'll just call somebody else.
  4. edgeair

    edgeair Senior Member
    Messages: 597

    Yeah, that is a tricky one. On one hand, you want to enforce payment by cutting off service. On the other hand, if you cut off service, then they may have an out for the rest of the season's payments. It all comes down to what your contract says about non payment?

    I have one in the same boat as you, a fancy pants spa commercial property that pays about the same as a large driveway and the price hasn't changed for 5 years. They did the same thing last year, so I think its time for me to show up at their front counter in full view of their stuck up clients in my dirty coveralls and politely ask them when they plan to pay lol
  5. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    I agree w/ not putting the hammer down so fast, as they can easily leverage you, as they right now have the advantage. It's very important to understand their process from where the invoice starts to where the check is cut, adding to that who's responsible for mailing it, because so often a check can be cut & still be sitting on someones desk. Start w/ your contact, explain your position...appeal to them on an emotional level. In other words, finesse them w/o upsetting them...make them go to bat for you. When that happens and they are receptive to really wanting to help you...that is the time to get other info from them (contact info, names & #'s), should you need to go over their head. Proceed w/ caution...Turn up the volume & then retract, giving them a day or 2 to respond. Repeat the whole process until you get to the accounts payable manager from corporate or whomever is responsible for mailing the payment. With extreme resistance, I have at times put them against one another...forwarding the messages from the previous. If all else fails, wait for a good ice storm & be ready and waiting on or near site...watch how fast they all move. If another contractor shows or they call one (hopefully not), explain what's going on & only if necessary threaten the contractor w/ a subpoena.
  6. Lkohan

    Lkohan Junior Member
    Messages: 25

    Usually I give them a courtesy call to remind them it is now due. Sometimes it is an oversight and just cutting off service is not good for business. You can put in there a late penalty clause when you do contracts. Most are 1.5% after 15 days. You can also give them a discount should they pay 5 days early save 1 or 1.5%. Just some gimmicks that might work. People love saving money and the 1.5% you give them back gets in your hands and bank faster. It also solves a large headache for you. Just a thought.
  7. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    Your stuck. My guess is there trying to get you to drop them so they can hire some one else. Same time trying get out of payments.
  8. ALC-GregH

    ALC-GregH PlowSite.com Addict
    from pa
    Messages: 1,132

    One of the problems that you have when setting up seasonal contracts.

    I bet they would be up to date on payments if it snowed enough. Right now, it's been very slow. They are paying you a fixed figure for doing nothing. Kinda makes it harder to want to pay.
  9. LawnGuy110

    LawnGuy110 Senior Member
    Messages: 197

    With the economy the way it is i wouldnt be too surprized