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payment terms/ invoice billing

Discussion in 'Introduce Yourself to the Community' started by chelap, Nov 14, 2006.

  1. chelap

    chelap Junior Member
    Messages: 2

    This is my first year doing snow removal. Is there anyone that can help me with payment terms and invoice billing for a seasonal contract? Do I send the Association an invoice even if I dont go out to plow? Please Help!!!:waving:
  2. B&E snowplowing

    B&E snowplowing Senior Member
    Messages: 159

    Payment term/invoice billing

    Welcome to the wonderful world of plowing....

    Here is what I do for my seasonal contracts. Just to make things easy let use $1200.00 as the contract price for the season.

    I take $1200.00 and divide it over 6 months. November to April

    I invoice each customer on the 15th of each month for $200.00. So October 15 I invoice for $200.00 due November 1 then I invoice on the 15th of November due on the 1st of December and so on.

    If for some reason I don't receive there cheque by the 1st of the month, I give a courtesy call. If the funds are not received by the 5th of the month service STOPS until I receive payment. If this happens more then twice, the the entire contract becomes due and payable immediately or service STOPS forever.

    I have NEVER had to stop service, but I have had to wait a couple of days for payment. Hope this helps you out.
  3. chelap

    chelap Junior Member
    Messages: 2

    Thanks alot for the info. So even if we have no snowfall for the prior month. I still need to invoice the client? So basically The client pays total contract amount even if I don't push the 10x's in his seasonal contract????:confused:
  4. Mick

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

    Really depends on how your contract is written. There are many ways to write a seasonal contract. For instance, most will provide service for up to a set number of trips. Then a "storm clause" kicks in. I have one that I will provide unlimited service for one price, even if I have to go there every day for six months. This one pays half up front and half by February 1st. Read your contract. It should spell out what service you are providing, how you are billing, the beginning/ending dates and trigger levels. Provisions for cleanups, etc.
  5. B&E snowplowing

    B&E snowplowing Senior Member
    Messages: 159

    Payment terms/invoice billing

    Sorry I guess I din't give you enough information. My contracts are as follows.... Plowing will commence when there is a snowfall of 2 inches or more. Clean up will begin in the evening.

    In the event of a heavy snowfall during the day, parking lots, driveways, and walkways will be kept in "passable" condition. Clean up will begin when the snowfall has ended or during the evening hours.

    Salt and sand is extra and will be billed separately at the end of each month.

    In my seasonal contracts it dosen't matter how many times the white stuff comes down, the contract period is from November 15 thru to April 15. Should it snow prior to or after the contract period everything is billed on a per plow basis.

    Long story short, everyone pays on the first of the month for the duration of the contract.

    This seems to work for me, because we usually do not see any snow until the end of November, and normally never see any snow after mid March. Almost all of my contract are seasonal, and I seem to be able to pull in good coin when you look at the entire 6 month contract.

    Last year I was out:
    Two times in November
    Nine time in December
    Three times in January
    Sixteen times in February
    Two times in March
    Zero times in April

    Basically I was out 32 times during the 6 month contract.

    EVERYONE pays on the 1st of the month.

    Hope this helps you out.
  6. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    I have some seasonal contract that pay in full for a certain amount of pushes by Nov. 1. If I go over then I bill.

    I have seasonals that get billed monthly as above and again will bill of we go over the pushes at the end of the season.

    I also have per push customer (some residentials only) that get billed usually every couple of storms (depending on pushes) which works out to maybe every couple weeks.

    Regardless my terms are 15 days. I shortened them from 30 because so many people can pay using online banking which lets them pay faster but because the checks come out of Ohio or something I have to wait for them to clear. I will give a bit of leeway for invoices mailed out of state (some customers in FL for winter). On day 16 they get a call. After 20 days I will not plow unless they come out of the house to my truck and give me payment. I basically use the same terms year round in my Landscaping work so most customers know it well. They also know they can contact me and I will work with them when needed. I want to keep the customers when I can.

    I am looking into taking credit cards but with a minimum amount.