[plowgirl67]

I would appreciate some feedback. Here’s the problem, it took this new client 3 weeks of going back and forth between hourly , all inclusive seasonal or per push/ per ton salt, he signed late November 27, all inclusive seasonal option was chosen and signed , 2 days later he changed his mind to per push/salt application, no service was performed so money exchanged. December we serviced the property invoices due on receipt, he paid no problem. serviced this month (can only service upon request) no payments have been made in January yet, I asked the salesman for that account what was going on and he said “yeah I talked to him they only want to pay once a month so they will be paying on the 30th every month” In 20 years I’ve never come across this monthly payments on a per push contract. Is this normal for any of you?!

 

[m_ice]

What's the contract say in regards to billing?

If nothing...find a compromise you can live with to finish the season and learn from it!

Also, I wouldnt re-sign them next year

 

[Hydromaster]

Tight budget
Or
There funds are not available until the end of the month.
Or
There old cheap skates.
You know, tight wads.

 

[Randall Ave]

So he wants to pay you once a month instead of say 5 times? As long as his credit is good, I do not see a problem. Set a payment date per month, if not paid by that date no service until payment is made. And keep trac of services performed. Or tell him no.

 

[EWSplow]

I'm guessing they, or their accountant pay bills monthly. They probably write checks once a month.

The majority of my accounts are per push and are invoiced monthly.

 

[plowgirl67]

Thank you! I appreciate the advice Its good to hear it’s not that uncommon. Contract states “due upon receipt” I have no problem working with once a month payments, it’s the fact he keeps bouncing back and forth between how he’s going to pay and not following the contract terms, its rocky. We’re expecting up to 10” tomorrow with operational costs for a storm like that I was a little uneasy going further in the hole.

 

[Randall Ave]

Thank you! I appreciate the advice Its good to hear it's not that uncommon. Contract states "due upon receipt" I have no problem working with once a month payments, it's the fact he keeps bouncing back and forth between how he's going to pay and not following the contract terms, its rocky. We're expecting up to 10" tomorrow with operational costs for a storm like that I was a little uneasy going further in the hole.

OK, but you can not just assume. Contact him say via Email and get this straightened out now. Make sure he understands the date you agree on the payment is to be made in full. It is your responsibility to get bills and statements out. It can be a pain, I did paperwork all afternoon today.

 

[cwren2472]

Make sure he understands the date you agree on the payment is to be made in full.

And how does that work out for you?

 

[Randall Ave]

And how does that work out for you?

Most do go by it, its these large companies that keep loosing my invoices. The company I did trailer work today only has 35 open invoices, and counting. It is the OPs choice on whether to extend credit. It can bring you more customers, and more headaches.

 

[Mark Oomkes]

Where's @Ajlawn1 red flag pic...

 

[Randall Ave]

Where's @Ajlawn1 red flag pic...

The other thing to, ya gotta be able to tell if the client is a slug or not.

 

[leigh]

In the last 30 yrs all my per push accounts have been billed monthly. I have one account now that wants to be billed after each storm. Its a pain in the butt! Tried to start billing monthly and she caught me! Now I'm back to per storm. I couldn't imagine the time it would take ! After each storm I enter billing into quick books and keep adding to that invoice until end of month, then hit email. Takes about 1 hr per month.

 

[ponyboy]

We bill 2 days or 3 days after each event this year has been easy
Last year we did it once a week
If I billed once a month most of my customers wouldn’t pay till end of next month so I’d be 60 days out and I’m around $20,000 a storm in labor salt calcium fuel I couldn’t afford to wait 60 days to get paid
Most of my customers are smaller commercial lots prefer smaller bills then 1 larger
And yes o have some that take 60-90 says to pay but I’ve worked with most for several years

 

[John_DeereGreen]

How many people/trucks/machines are you running and material are you spreading to spend 20k a storm?

 

[leigh]

How many people/trucks/machines are you running and material are you spreading to spend 20k a storm?

A lot!

 

[WIPensFan]

We always billed monthly. We would put payable within 10 days on the invoice. 80% would pay within that time, the other 20% would pay within 20 days. As long as we were paid by the end of the month I didn’t care. Had a few resi customers who would send enough to cover the next months bill as well as the current one because they were going to be out of town for a while. Some people just get it. OP’s client sounds iffy though.

 

[m_ice]

In a perfect world you have the office staff and customers that are ok with it and the sooner you bill the better in terms of cash flow.
Us...we bill usually about a week after service. It gets into their system and they pay it however they pay every other invoice from us. So if they are 7-14 days (rare!) For lawn then that's how they are for snow.

 

[Randall Ave]

In the last 30 yrs all my per push accounts have been billed monthly. I have one account now that wants to be billed after each storm. Its a pain in the butt! Tried to start billing monthly and she caught me! Now I'm back to per storm. I couldn't imagine the time it would take ! After each storm I enter billing into quick books and keep adding to that invoice until end of month, then hit email. Takes about 1 hr per month.

 

[FredG]

It's not uncommon on per push accounts. Little strange that he did not make this agreement from the jump.

 

[ponyboy]

Heavy salt 50 tons light 40
Calcium 4 pallets
35 guys between shoveling machines trucks
NY my area wants instant results I could probably cut 8-10 guys out but we finish usually 4 -5 hours after storm is done
I like the extra trucks and guys Incase one goes down rest pitch in and client usually doesn’t notice difference