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when do they pay residential

Discussion in 'Commercial Snow Removal' started by lmarine, Sep 17, 2006.

  1. lmarine

    lmarine Member
    Messages: 35

    Hi guy new to the buisness but been around it for years any way Im getting request from my lawn customers about plowing residential driveways great ok so im thinking $500.00 for the season (too cheap???} ok so i get a contract my question is do you have the people pay now in full or divide monthly nov - march most of the cutommers are seinors and get nervous about paying up front but i think that is the way to go but then again i dont want to be the only one asking that so is this the norm?
    Thank you
  2. DuraMaxAllison

    DuraMaxAllison Junior Member
    from Toronto
    Messages: 26


    i have signed a few residentials and i have my contract set up half upon signing and half in jan 07 ..(post dated chq) ... try that out.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Let's see you have:

    Per plow
    Per inch
    Per season
    Any combination of them.
    You can ask around your area and see what others do.
  4. lmarine

    lmarine Member
    Messages: 35

    thanks guy im thinking your right with the half down deal that might work what about the price am i close there is about five homes whith in walking distance i think i can get i have a quad to plow them with should not be too hard
  5. DuraMaxAllison

    DuraMaxAllison Junior Member
    from Toronto
    Messages: 26

    how much

    depends your area and snow.. i live in the suburbs and my highest is 375 with path and walkway done .. including a spritz of salt .
  6. silvetouch

    silvetouch Senior Member
    Messages: 336

    i do a handfull of residentials in michigan and its hard to get alot of money with certain company's ( i can't say any names) doing the whole season for $199. its hard to make any money unless you have quite a few of them in a close area. let me know how your bidding goes.
  7. KCB

    KCB Senior Member
    Messages: 153

    Hey DuraMax. what area are you in?
  8. Antnee77

    Antnee77 PlowSite.com Addict
    from RI
    Messages: 1,056

    Everyone does it differently for different accounts. I plow all residentials by # of pushes.
  9. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    i'd have them pay at the end of the season (end of march) that is when i need the cash flow the most. this also cuts down on office work
  10. go plow

    go plow Senior Member
    Messages: 322

    why would you do that? what if half way into the season they deside they dont want to pay you or they say well if we dont pay him, atleast it will not snow much at the end of march,so who cares, we got our driveway plowed all season for free!!! or you just are able to save enough money during the summer to carry you through... and even with a contract lets just say you take them to court, by the time you get the paper work ready, you get a court date, and then the judge says ok judgement for the plaintiff, $25 a week till its paid off, at this time its aug..... and by the time they pay you it will be the following winter season... what do you do then??? its simple, you did the work, they need to pay you just like they pay the power bill, and the cable bill, once a month .......
  11. Antnee77

    Antnee77 PlowSite.com Addict
    from RI
    Messages: 1,056

    Not me. I keep up with the billing after every storm and make sure I get some money coming in!payup
  12. shamp

    shamp Member
    Messages: 33

    I set my season contracts up as half when signed the rest paid by Feb 1st. and i send out a invoice to remind them. If they don't sign for the season contract they still have to sign for a per push agreement with depths of every 3" and I bill them ether on the 1st. or 15 th. of the month depending on when the storms hit.
  13. DuraMaxAllison

    DuraMaxAllison Junior Member
    from Toronto
    Messages: 26


  14. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    never had a problem collecting yet. we work for very good customers ( i know almost all of them personally for many years). the simple reason i only send one bill is because i am a roofer/snow plower, salesman, mechanic,and do my own office work too. this reduces my paper work from apx 400 invoices to about 60 per season. also need to realize our snow plow business only generates about $20-$30k per year. wheras you guys up north really make bank with the snow, for me it's just a hobbie that breaks even.
  15. Mainiac

    Mainiac Member
    Messages: 46

    I bill once a month, all of my res plowing and shoveling is charged by storm and amounts from that storm. I make a killing this way. :)
  16. jhook

    jhook Senior Member
    Messages: 375

    I will do residential either by the event or by the season. If they are by the event I bill them monthly and if by the season, I get 1/2 upfront and the other half in Feb.

    Our winters are pretty predictable here though, we will get 23 events plus or minus 2. The only variable is when they come. Last year we were getting kind of busy so I just started pricing high so now I am getting $400 /season for a normal city driveway. +$100 if they have a walkway to shovel. I am not the cheapest guy around any more but I have more work than I can do anyways so I don't care.