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Problem with account paying

Discussion in 'Commercial Snow Removal' started by jbutch83, Jan 31, 2003.

  1. jbutch83

    jbutch83 Senior Member
    Messages: 227

    Just got a call today, from one of our accounts, happens to be a large video rental chain. Manager said that they just mailed out the check for the Dec. bill, and sorry that it took so long, but the district manager and the owner of the company at first refused to sign the check. They both bounced the bill around to each other, both stating that we were getting paid too much. First, we only had 3 plows for them in Dec. and we do have a signed contract. Now mind you, we are probably doing them for abount 75% of what we should be doing them for, but we are new, dumb, and stupid. I originally was not going to take the account, but I let my partner make the decision, as when it was time, I was not in the mood to do it. (Other things going on, and was in a bad mood, told him that I would go with his decision) Now, we have had a really busy Jan. about 10 to 12 plows so far. What do we do when they really complain, when they see the Jan bill, as it is going to be at least 5 times the Dec. bill. It seems that the manager is understanding the issue, but the person that signs the check is causing the problem. Remember, we do have a signed contract, and they were aware of the price when the contract was signed.

  2. Grshppr

    Grshppr Senior Member
    Messages: 268

    A contract is a contract. They agreed at that price with you before the season. Is it your fault you are getting lots of snow? They got the service they signed up to get, so I would stick to your bill.
  3. NNJSnow

    NNJSnow Senior Member
    Messages: 228

    I agree, "A contract is a contract" you do your job and you are entiled to the money you are charging for your services. As long as you do your job they way you are susposed to then you should get full payment and ON TIME.
  4. wyldman

    wyldman Member
    Messages: 3,265

    This would be a geat time to introduce them to seasonal pricing.It gives them peace of mind,because they know what it's gonna cost them every season (except for blizzards,removal and salt),so they don't freak when they get a huge bill.Peace of mind for you too,as when it's not snowing,you still get paid.

    I would also recommend you get some sort of retainer or deposit up front too,so that if they do freak and don't pay,then you are covered,up to however many snowfalls they were billed for in advance.If they don't pay,then stop service.
  5. jbutch83

    jbutch83 Senior Member
    Messages: 227

    This is one account that we will not take on next year. Last week we heard from several other plowers in town, that they are the worst place to work for, and they think that everything is overpriced. We had talked to them about having snow removed, because were they wanted us to put it was full, and it was blocking their dumpsters from getting emptied. They refused to pay to have the snow removed or stacked, so now they want us to put it in the front of the lot. Their comment was that it is going to warm up next week, and the snow will melt. Mind you that we have had about 30 inches of snow in Jan. so this stuff will not melt anytime soon. I guess this is a lessoned learned, tell them at the end of the year to find someone else.

  6. ZMC

    ZMC Junior Member
    Messages: 13

    I had a customer that I utilized the suspension of service clause in the contract for lack of payment. I exercised this clause on Monday. The client is an apartment building complex that expects high standard of service, at a trace of snow they want salt. Today, Friday I received full payment for all invoices. If you have a suspension clause in your contract maybe you should use it, if you don't have you might want to consider adding one next year.

  7. OffRoadPlow

    OffRoadPlow Senior Member
    Messages: 247

    Bill it, you did the work, just because they have a hard time with it does not make it your fault. I do not know how your contact is written, but I would have to agree with the others... A well written contract will save you head ache with accounts like this. I updated my contact for next year half a dozen times just from reading the info in the posts on this site... Just my .02
  8. Chief Plow

    Chief Plow Senior Member
    Messages: 201

    I agree... As I am learning a well written contract can be all the difference. You need to put in there something about late payments, we run on net 30... Anything over that is 5% added to invoice with a friendly reminder. Also, a suspension of work clause would be very beneficial. We have been burned before by not having a good contract. There is a lot of information here, and the people here are very helpfull. my 2 cents

  9. mulchmonkey2000

    mulchmonkey2000 Senior Member
    Messages: 106

    i dunno if this was said, maybe i missed it but i hope your partner got either the owners or district managers signature on the contract and not the managers:(
  10. Sno

    Sno Senior Member
    Messages: 320

    Lowballers are out in force this year. I'd be willing to bet every lot in America has recieved a lowball bit or two this year.

    Making us look like thieves.

    I'm just sitting back watching how this all pans out.

    Maybe I should lowball the lowballers, see who goes out of business first.


    My expenses are almost paid.

  11. Got Snow

    Got Snow Senior Member
    Messages: 104

    if you didn't clear the snow...would he be in business? difficult payers are left to the end of the route. see how he like being plow out the next day!