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Billing Dates

Discussion in 'Business Fundamentals' started by CountryChevy15, Jul 18, 2009.

  1. CountryChevy15

    CountryChevy15 Junior Member
    Messages: 15

    How would you recommend going about billing for residential driveways?

    If they have a signed contract would you send out the bill ever 2 weeks and make payment due within 10 days?
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    1. Paid in full for the season

    2. Half at signing half at mid season

    3. 1/3 at signing 1/3 Jan. 1/3 in Mar.
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I bill the last day of the month, due in ten days. Seasonals are paid either in full at the beginning of the season or half at the beginning and half in January.

    1. Always put a due date. There'll always be some who schedule by the due date. No due date - no payment.

    2. Always state a penalty for late payment. Some charge interest. My "due date" was the tenth. If not paid by the tenth, I sent a "second notice" and that I would stop plowing if not rec'd by the 20th. If not paid by the 20th, I stopped plowing. This past winter, I had that happen with a long-time customer. He "got by" for a month or so, till we got a 14"er of wet and heavy. Two days later, I received the 2nd half of the seasonal payment. Before I cashed it, I went up to see how much snow I'd have to move. He'd actually shoveled most of it, so I plowed it.
  4. CountryChevy15

    CountryChevy15 Junior Member
    Messages: 15

    well im going to have contract signed and then bill every two weeks. ill just keep track of how often i plow each driveway and then send a bill with the dates saying i need payment within 10 days or a 15% late fee will be imposed.

    sound fair?
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    How placing are you billing? sounds like a lot of work. By the time they get it and send it back you have a late charge on it for them.
  6. CountryChevy15

    CountryChevy15 Junior Member
    Messages: 15

    this is my first year doing the billing side of stuff last year i subbed so i didnt have to directly bill customers. So i really dont know how to go about it
  7. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    Do you have the ability to take credit cards? We require a CC number and info on all driveway contracts, then we bill the card after every plowing. Yes the CC cost about 3% but that's less then the cost of paperwork, billing and postage, plus I have my money immediately.
  8. CountryChevy15

    CountryChevy15 Junior Member
    Messages: 15

    no not that big yet. hopefully oneday
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I should of asked, are you doing per plows only or season?
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    invoice every 2 weeks that it snows. Payment due within 10 days. If not recieved, a $?? finanace charge is applied. Mine is $10. If you use a percentage make sure it is a Monthly rate not a Annual Percentage Rate. 15% APR is different than 15% Monthly. Make sure you put in a Stop Service time if payment is not recieved. Mine is 15 days. That may sound short, but a lot of snow can happen in 15 days and if you put 30 it may be to late to get your money back.

    Good Luck
  11. 2COR517

    2COR517 PlowSite Fanatic
    Messages: 7,115

    On my per push stuff, I bill when it makes sense. After three storms seems to work well. If there's a fourth coming tomorrow, I wait. I also bill at the end of the month regardless. Just to keep things squared up and recent. I send my bills out with a pre-addressed stamped envelope. Costs me about $15 per billing to do that, but it's worth it.
  12. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Residentials for me are all pre-pay for season. I don't want to chase people for a couple hundred dollars. Thats one of the main reasons we still keep the residetials we have is the cash flow pre season is a great feature, we are 90+ % commercial which don't start payng till December, the added renvenue helps offset start up material cost (salt & ice melt).