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Payment Options

Discussion in 'Introduce Yourself to the Community' started by whos_the_master, Sep 12, 2006.

  1. whos_the_master

    whos_the_master Junior Member
    Messages: 9

    What are some of the payment options do you offer customers? Cash up front,bill,payment? For a contract is it like half now them half later??

    Thanks Guys!!!!
  2. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    I have used them all, I have one customer who pays up front for a seasonal plowing and then gets billed monthly for salting, most I bill every month, and some small jobs that send me a lump sum and when we get down to last hundred or so I send them a bill. Its what will work for your customers and they are all not the same.

    Regards Mike
  3. Mick

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

    Billed on last day of the month for services rendered that month; due by the 15th. If not paid by the 15th, reminder is sent to pay or contact me by the 20th or services will be terminated. Seasonal - 1/2 upfront with remainder due by Feb 1st.
  4. Big Dog D

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

    We bill after almost each and every event if there is no ther weather forecasted. If there is going to be a string of stormy weather we will wait till it's done and bill several events togeather. The faster you get them out the faster you get paid. All my invoices are sent out "due upon receipt". For some of the larger commercials we give them 30 days on an invoice, residentials they get called after 2 weeks if they're not paid up.

    When I first started and didn't know any better I used to bill once a month. But then it seemed like we would get several large events toward the beginning of the month and then all of a sudden I realized we weren't getting paid for that work for almost 2 plus months later.

    Most everybody you deal with probably expects to get paid when you get what you bought right? The parts guy, the fuel guy, the salt guy and more importantly the guy(s) that work for you right??? Why should you be expected to pay all of this stuff "out of pocket"and all the while financing your customers snow removal? If you know this up front or are required to and are expecting it thats fine, at that point you can even build a bit extra in to account for it. But other than that you should be looking to geat paid as fast as reasonably possible. This doesn't mean showing up the next day and saying I need a check NOW! but rather just be quick about getting the invoice out and be persistent and consistent about when they are due.

    The other reason not to wait is that somebody can get two months ahead of you and still be "within terms" and if they decide not to pay or pay really slow what recourse do you have at that point now that you are 2/3 to 3/4 of the way through the season depending where you are.

    I don't mean to come off as bitter or cynical but this businees is tough enough as it is with out having to worry about getting paid. I have a very good loyal and reliable customer base but I feel that it is because I have held to these guide lines and it has helped me to quickly weed out the bad ones without getting burned or getting burned too badly!!!!
  5. DaySpring Services

    DaySpring Services PlowSite.com Addict
    Messages: 1,065

    My seasonal contracts are 50% upon signing the contract. The remaining 50% is due the Third week of January.
  6. whos_the_master

    whos_the_master Junior Member
    Messages: 9

    Very informative, THANKS GUYS!!!!
  7. Freddy_Kruger

    Freddy_Kruger Member
    Messages: 44

    Best way I've read and that I will use this winter is Bill on the 1st of the month due on the 15th. You give them two weeks credit because you trust them and they pay two weeks early because they trust you.