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Wiil Customers Renew contract For March

Discussion in 'Commercial Snow Removal' started by Daner, Feb 22, 2006.

  1. Daner

    Daner PlowSite.com Addict
    Messages: 1,187

    I do most of my country driveways by monthly contract...And this year as we all know has been preety slim on the snow...I,m trying to do a squeeky clean job here near the end of this month...Hoping they will like the good service and keep it going for march.
    Or will they want to go for the per push dance
    I wish i new how the weather will be in march
    Anyone in this situation??
     
  2. justme-

    justme- 2000 Club Member
    Messages: 2,138

    Why would you do a monthly contract? It's so much easier to contract for the season, especially when you have a year like this. If you want that much work in chasing payments stay at per push. I charge per push and end up billing at the end of the month so there's less paperwork.
     
  3. cet

    cet PlowSite Fanatic
    Messages: 7,202

    I don't see the pont it doing a monthly contract. If I did, January would be twice as much as March and 50% more then Dec. and Feb. This year would have been bad as we had 8 pushes in Dec. and already 4 in Feb. and I think 1 in Jan.

    For residential I would only offer a season price. For Newmarket we base it on 18 pushes.
     
  4. SnowMatt13

    SnowMatt13 PlowSite.com Addict
    Messages: 1,532

    What is your average date for last snowfall in your area??
    Don't short change yourself. You sell plowing along with piece of mind.
    The last thing you want is a discounted or shortened contract and then it will snow:nod:
    If they are understanding they will sign. If not tell them you can maybe do a per push agreement, at a higher price. Just make sure whatever you set-up is in writing.
     
  5. Daner

    Daner PlowSite.com Addict
    Messages: 1,187

    Good advice

    Ok maybe next year i will be smarter and go for a seasonal contract...Now How do you bill the people...Monthley??
    all up front...I get paid for the month in advance thats the way that i do it...So what is the best way to set up this seasonal contract??:waving:
     
  6. SnowMatt13

    SnowMatt13 PlowSite.com Addict
    Messages: 1,532

    My seasonal is half down when contract is signed.
    Second half is due Jan 1st.
    I also have one seasonal contract where salt is billed per time because they don't want salt every time. But in order to do that, they sign the very long waiver releasing me from liability.
     
  7. cet

    cet PlowSite Fanatic
    Messages: 7,202

    I collect mine at the end of the winter. I only have 6, they are long time customers. They would not make up 2% om my plowing and I just do it this way. It has worked out well because on the bad winters some of them pay me a little extra.
    The norm around here is 1/2 when you sign them up and 1/2 Feb. 1. The one that complains that they are paying you before the winter is over explain how when you special order something you pay 100% up front. You can't put the snow back if they don't pay.
     
  8. justme-

    justme- 2000 Club Member
    Messages: 2,138

    I charge per pass and keep track. At the end of the month I write up the charges into bills and mail away. I don't charge in advance- doesn't seem right when you're charging per pass, since you don;t know what the bill will be yet.

    I have been exparimenting with accounting software instead of hand writing the bills as I have done for all these years. Quicken is popular but overily expensive and complicated for this business, Voulative is a bit complicated (but free!). Blizzard Buster while expensive Is sofar the best, as it should be. You can enter charges as they incur and simply print bills at the end of the month in 3 mouse clicks.
     
  9. Daner

    Daner PlowSite.com Addict
    Messages: 1,187

    Sounds like a good way to do it

    Matt is it posssible you could email me that waiver that you have set up...May be i can add that on mine as well... Most my customers don,t want salt...
    Thanks Daner
     
  10. justme-

    justme- 2000 Club Member
    Messages: 2,138

    Depending on your state a waiver may be worthless- check it out to be safe. In MA it's simply a deterant. My contract states
    >Customer is responsible for deturmining the suitibility of the services offered for their application.
    >Customer also agree's to take responsibility for any and all third party person's and property on customer's property and for any situation and/or damages that may arise due to direct or indirect actions of offered services.
     
  11. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,967

    I bill everyone a flat fee for the year.

    I base my rates on $100 / hour, 1 hour minimum, for 18 events for my commercial accounts.

    If a lot is going to take me an hour, then it's $1,800 for the year.

    A residential, meaning a 30-60' driveway, standard 2 car widths wide, shoveling "normal" walkways and in front of the garage is $450 / season, at the beginning of the year.

    The commercial accounts take that $1,800 for the season, and spread it out over 6 months, or $300 / month, from November through April, at which time the mowing contracts kick in.
     
  12. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,967

    I bill everyone a flat fee for the year.

    I base my rates on $100 / hour, 1 hour minimum, for 18 events for my commercial accounts.

    If a lot is going to take me an hour, then it's $1,800 for the year.

    A residential, meaning a 30-60' driveway, standard 2 car widths wide, shoveling "normal" walkways and in front of the garage is $450 / season, at the beginning of the year.

    The commercial accounts take that $1,800 for the season, and spread it out over 6 months, or $300 / month, from November through April, at which time the mowing contracts kick in.

    Each invoice is sent out at the first of the month, for that month's work. I.E. November's invoice is sent out November 1, and is due by November 30th, or you're dropped down on the list of "needs to be plowed first".
     
  13. Daner

    Daner PlowSite.com Addict
    Messages: 1,187

    450 for thr season??? sounds like they are getting a good deal from you
    All the rest makes good sence to me but i would charge 180 per month x 4 dec. jan feb march=$720.00
    As a Matter of fact i just had two sign for march todayxysport :nod:
     
  14. jhook

    jhook Senior Member
    Messages: 375

    Ya, I have no idea how you would charge for a monthly deal. Every month can be very different here but we still average about 24 events each year. I certainly do seasonal rates and with residential customers I take 1/2 up front and 1/2 Feb 1. businesses I just set up however they want. Options are 2 payments (like residential) or over 4 months or 5 months.

    I have one commercial client over 6 months but that is because it usually takes a while to get money out of them. I charge lots and the eventually pay but this way I can start chasing them in October for the upcoming winter :) It was his idea.