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US Maintenance / Walgreens getting paid?

Discussion in 'Commercial Snow Removal' started by Green Image, Feb 17, 2014.

  1. Green Image

    Green Image Junior Member
    from Iowa
    Messages: 11

    Are any other contractors having problems getting paid on time by U.S. Maintenance? Payment window is 42-48 days for Walgreens stores, but the one check we have received so far covered invoices that were 60+ days. Next batch is in the high 50 day range and no check yet. Contact them every day and all we get is a run around and no answers. I doubt this is an isolated situation but just wanted some feedback from other contractors.
  2. House2Home

    House2Home Junior Member
    Messages: 5

    So your contract states net 42-48 days? Do you have an interest clause for anything after that? Myself I would only allow 30 days, a month is more then enough time to pay you. I would be charging 8-10% interest beyond that and I would have a clause that if payment is later then 45 days, all work stops until all due balances are paid in full. You gotta protect yourself from allowing anyone to fall to far behind or taking advantage of you excessively, because no one else will.
  3. Green Image

    Green Image Junior Member
    from Iowa
    Messages: 11

    30 days is our standard with all accounts. With that being said, if you want to service chain stores there is very little variance or specification within their contract as to procedures for late pay / charges, etc. That is why this is so frustrating. 45 - 60 days is the norm with these accounts. If you know this going in it is workable, it's when they tell you one timeframe and actually pay on another that causes problems. We actually stopped service on this account this weekend until we received an acknowledgement of payment for some of the past due amount. It's amazing how fast they get you answers when their clients lot has 4" of snow in it a day after the storm... Maybe we should organize and sit out an entire storm across the snowbelt once just to show the Nationals how powerless they really are?
  4. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,253

    Maybe.............after all the discussions about nationals here on PS.............................no one would sign up with them, just based on their contract alone. Not even getting into their pay schedule and that every year at least one of these threads comes up.

    You can't really say you weren't aware of their reputation.
  5. Sawboy

    Sawboy PlowSite.com Addict
    Messages: 1,700

    This! :nod:
  6. Italiano67

    Italiano67 Senior Member
    Messages: 645

    If you think that snow income is going to be on a schedule exactly as your contract states you have some lessons to be learned. If you cant float your expenses for at a minimum of 60 days you are going to have problems. There are a lot of moving parts with snow money and it isn't as simple as grass etc. where everything is schedule. People come on here all the time and piss and moan about payment being a week late or whatever and you know what. Too bad. If you don't have the means to work with these problems then stay out of snow. Sorry for being grumpy but it is what it is.
  7. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,253

    Horse hockey.

    I am not a bank. I am a snow and ice manager. My contract states 30 days, that's what I expect to get paid in. (Having said that, I have a few that are 35-45 days, but still regular.)

    Do you tell your employees, subs, vendors, etc the same thing?

    "Sorry, there are a lot of moving parts in snow removal and it isn't like cutting grass when everything is on schedule, so you're going to have to wait 60 days to get your paychecks to feed your family, make your car payment, utilities, and you vendors? Too freakin' bad, this is very complex, I will pay you for that salt in 60 days, hopefully. Same for fuel."

    Like they care about your inability to follow through on your contract terms. Sure, you need to have some cash in the bank, but to expect that I should regularly float my expenses 60 days is ridiculous. Bovine excrement.

    You seem to have a pretty good head on your shoulders Italiano, this is the first ignorant comment I've read from you.
  8. Italiano67

    Italiano67 Senior Member
    Messages: 645

    Thanks for the compliment:D.

    If it is deemed an ignorant comment that payment timing will vary with snow and that there will be times when you will need to float on your own for some time then then so be it. Everyone that works for or with me gets paid as expected as do vendors. However I understand that with billing and multiple variables such as holidays weekends or even paperwork snafus there are going to be times when the payments will be held up. I am crabby as we have another 6 inches coming this afternoon ;).
  9. edgeair

    edgeair Senior Member
    Messages: 597

    I don't think we are talking about holidays or other variables here. It seems that the OP is having significant timing delays.

    Agreed that a business needs to prepare and be able to handle temporary shortfalls, however, consistent late payments are a problem. I don't think the OP indicated he can't survive if the doesn't get paid on time, rather I think he was wanting to see if the slow pays are a common problem.

    I deem that your comments are ignorant prsport :laughing:
  10. ServiceOnSite

    ServiceOnSite Senior Member
    Messages: 950

    Lets just sum it up as its another person having another problem with another national.
    We can add things like Do a search, dont work for them, and read your contract.

    And just for icing on the cake Find some contract locally, youll be happier , and youll get paid more money.

    Now we can then take all these answers and highlight it under " Does anyone else have this problem with ( insert name of national company) paying on time?"
  11. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,253

    Yeah, but that takes all the fun out of it. Thumbs Up
  12. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    It's sad but every year there's a new crop of guys who get ripped off plowing for nationals. They quit and the next year it's wash, rinse, repeat.

    The companies are saying, man, I don't know how they do it so cheap! It's because they pay the subs next to nothing and sometimes nothing at all.
  13. mulcahy mowing

    mulcahy mowing Senior Member
    Messages: 718

    Our area is dominated by nationals that want to pay nothing and the customer ends up with poor service. The next year it's another guy getting the shaft.:gunsfiring:
  14. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    Wish this was like Facebook so I could like Mark's posts!
  15. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    As a friend stated to me his line..."I'm not in the business of financing your winter service needs". Thats BS! I think this winter was a dose of reality for some of the corporates.
  16. ServiceOnSite

    ServiceOnSite Senior Member
    Messages: 950

    I use a similar line in the summer for concrete work. " Im not the bank, and im not financing your project."
  17. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,085

    Someone posted the entire usm plowing contract here on plowsite a couple years ago. I took the time to read every page of it. Anyone who would sign that contract is nuts imho!
  18. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    Unfortunately it seems that every big company is headed that way:cry:
  19. Raymond S.

    Raymond S. Senior Member
    Messages: 513

    We were hounded by a national for the local Target lot this year about a week before the first storm. Plow, salt, walks, etc...$12,000 for the season. I literally laughed in the phone.
    Sometimes when I'm bored I drive thru the lot looking for the contractor. I picture him tucked up in a corner, curled in the fetal position, sucking his thumb and crying uncontrollably.
    No one
    Legitimate profit
  20. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    I agree with this 100%

    I had a guy come to me asking how I get my late payments I told him I wait for them

    He said he has bills to pay with no money coming in I told him where is your extra Summer money at He spent that on a new truck that doesn't even plow snow I told him suck it up or sale out.
    With snow if you cant float your self then your a bad business man.
    My business can live on summer work don't need snow.
    Snow is a bonus $$$ So if I have to wait 60 days then I wait.
    I have one factory it is running around 90 days turn around Like in Jan I got my Oct payments and yesterday I got my Nov payment. So late payments doesn't bother me much I'm use to it I been doing this since 1981