# how do you guys collect your payment?



## hankhill (Jun 1, 2010)

Hello, I am going to be new to plowing this coming season, I very much like the trigger method and would like to set 3" but how do you guys document each time you plow and give the bill to the customer? because the customer could just deny it and say you didnt plow at all then what?


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## Mick76 (Aug 2, 2009)

Hank,
There are different weather service cos out there that give totals in your area. In my contract I go by NOAA to get my totals... Just curious, why are you getting into plowing? What type of accounts are you looking to get?


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## mycirus (Dec 6, 2008)

New customers are cash or check right after, regulars get billed about 7-10 days after storm. Of course everyone will be new to you but if they want you to plow all season I would bill them. You will learn which ones pay quick, which ones wait a few weeks and which ones you should stop plowing.


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## buckwheat_la (Oct 11, 2009)

we bill monthly, but we charge a penalty if people take longer then two weeks to pay


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## AndyTblc (Dec 16, 2006)

Most of my customers will pay by the month, others will come out while I"m there and pay me cash, and while others I need a pitch fork and a torch to get my money


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## wizardsr (Aug 8, 2006)

Monthly bill, they send a check in the mail. This should be clearly outlined in your contract with the customer.

3" trigger? Must a regional thing, but we'd never get away with anything over 2" here, most are 1" trigger, 4" open.


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## plowatnight (Mar 10, 2010)

*collect*

Monthly send a bill they send a check, Never not been paid since I went on my own in '98. 3 inch trigger too much unless it's done and you're plowing and clean-up all at the same time. Just my opinion.


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## wizardsr (Aug 8, 2006)

plowatnight;1054186 said:


> Monthly send a bill they send a check, Never not been paid since I went on my own in '98. 3 inch trigger too much unless it's done and you're plowing and clean-up all at the same time. Just my opinion.


12 years without a non-payer? Go play the lottery! LOL


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## Longae29 (Feb 15, 2008)

Keep a detailed including exact start time and exact end time, and services provided. Keep an eye on local news channels website, or noaa for exact totals for different areas. We bill monthly, on the first, most due within fifteen days.


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## grandview (Oct 9, 2005)

Go seasonal. then bill them equal payments for the season.(do I like seasonal oh what?)


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## snocrete (Feb 28, 2009)

I send bills out within a few days after the storm. I like this method for the simple fact its fresh in my/customers minds of what went on and why, in case of any questions.....plus I like getting paid quickly.


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## Longae29 (Feb 15, 2008)

Billing will be done on the first of each month for the previous months services for per occurrence contracts, and on the 15th of each month for seasonal contracts. Payment is due within fifteen days. Past due accounts are subject to a 1.5% months finance charge (18% annual). In the event that Owner defaults in payment obligations Contractor may discontinue any further work until default is satisfied, or Contractor may terminate any or all portions of this contract and will then seek other manners to recover unsatisfied invoices for goods and services provided. Any failure by owner to make payment within contract terms for services received will relieve Contractor of complaints by Owner for future delays in completion of services. All questions regarding bills must be received by phone or fax within 7 days of receipt of bill.


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## swtiih (Nov 30, 2008)

I would agree with Grandview, then you don't have to chase what is owed.


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## Westhardt Corp. (Dec 13, 2009)

Seasonal is certainly easiest, paperwork wise. And per push needs to be billed within 24 hours of completion. I'm a big fan of electronic submission--it's quick and (more importantly) verifiable.

When in doubt, remember this little tidbit: "the sooner they get your bill, the sooner you get their check".


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## IDOCTORTREES (Dec 27, 2006)

I ask my wife to send them a bill....haha


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## plowatnight (Mar 10, 2010)

*billing*

HAHAHAHA I'm with you Doc, I can plow snow for 60 hrs, but wife is the Queen of the computor. She can bring home the bacon and turn it into loin ! !


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## Westhardt Corp. (Dec 13, 2009)

Mmm.._bacon._


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## hankhill (Jun 1, 2010)

thank you very much for all the replys, I like to do landscaping in summer, and usually find something in the winter but had this plow and got my truck so I figured I would use it, I'm not interested in doing big commercial jobs, just residential, I figured 3" would be good because maybe the customer wouldnt want to pay for just 1 inch removed but it looks like I have much to learn, I am hoping to set up contracts with residential customers for the plowing, do you guys think it would be bad if I billed every two weeks? I like the idea of sending out a bill for each time I go to plow but that would just be wasted money in stamps because if snow falls three times a week then that would be three bills to send for each customer and who knows they might get confused, unless I wait for the snowfall to end and then send the bill making sure to include each of the days I went to their property?


Edit: on a side note I see a few mentioned NOAA, I was thinking about either buying a cb radio or a police scanner with the 7 channel NOAA capabilites to permanently keep inside the rig, do you think this is a good idea, also another question that comes to mind, what do you guys do when you have already plowed a drive way but it continues to snow and you have to go back? do you charge twice or just once?


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## REAPER (Nov 23, 2004)

Need to determine if it is residential or commercial lots. It will be 2 different billing methods and contract stipulations. 

Residential wait until storm is over unless a premium price is paid. 
A 3" trigger will never keep commercial lots happy and could easily bury you in time.


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## dumbyankee (Jul 30, 2010)

The best billing advice I can give you is this. My municipal accounts are billed weekly, its their choice, Commercial and residential accounts I bill monthly, Any one that has to be billed at the end of each storm will be charged an extra $5.00 paperwork fee. When plowing, keep your mind on the job at hand, do the paper work when you get back to the office. Keep an event log in the truck, (list of accounts) check them off as you service the account, make a note as needed of extra services, (so you can bill for them) and remember its all about your customer service skills


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## swtiih (Nov 30, 2008)

If you are plowing driveways for per time payment then each time you go back you get paid


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## hankhill (Jun 1, 2010)

but what happens if I have to go at 4 o clock in the morning? also can you guys tell me how effective back dragging is without the back dragging cutting edge? a lot of local driveways are just straight with their garage doors on the end? I have a 8' western unimount


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## swtiih (Nov 30, 2008)

it shouldn't be a problem,but if you want a backdrag edge they aren't that much


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## hankhill (Jun 1, 2010)

how much do you think they are? also I want to change the hydraulic fluid, now I found a fill and drain plug on the pump, but what about the rams on each side, do I drain those?


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## dumbyankee (Jul 30, 2010)

A lot depends on how you are billing your accounts. It takes a bit of time to learn which accounts to keep and let go if needed. Most of my clients are set up on a spread, meaning a storm comes in and I service the account I then charge for full payment, If the storm dumps over lets say 10 inches and I service the account a second time on the same storm I usually charge 1/2 the cost of a service. Keep in mind, if you know the storm will produce, the first time you service the account you are not doing the usual clean up, you break them open, so for the most part, you are only doing half the work, which is why I only bill out for half the money. Now that I have made that statement, a driveway that is a complete P-I-T-A to remove snow from, and you do a full plow job on dispite the amount of snow fall, charge the full amount each time you service the account. If you value your customers, find a way to provide your service and keep them happy dispite what you are charging them, but most of all turn a profit


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## Kramer (Nov 13, 2004)

I send bills after a storm by email. If they dont pay, I send a hard copy by snail mail.

I had to go to one customers house last year...they wouldn't answer the door. I left the late bill in the door...they sent a chack 3 days later.

The biggest problem you will likely have is at the last plowing. In short, as the weather warms up, people forget you plowed so they need a little nudge sometimes.

This is why I try to bill as frequently as possible. I found that its easier to swallow a few late payers from the last storm than to have a bunch of storms piled up and then chase people for a boatload. Plus, my customers would rather see smaller bills so I have gotten complaints if I wait a month and then kill them in one shot.

I don't normally have problems getting paid. In either snow or lawncare, I send bills within a week of service. I like getting paid frequently too! payup


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## grandview (Oct 9, 2005)

Go seasonal on the driveways.1st due at signing, 2nd, Jan1st, last Mar.1st


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## Mackman (Nov 3, 2009)

I collect payment with a baseball bat and a gun. It works kinda good.


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## dumbyankee (Jul 30, 2010)

Ahhhh collections: not usually a problem with snow removal but the lawn care sometimes is a challange. If they cant pay me I set a payment program with them. If they stiff me again then I start taking property. Never ever threaten someone with violance. Not good business. If nothing be fair to your clients, we also pass a black list around of people who dont pay. sooner or later no one will service the accounts. I allways try to beep and wave when they are shoveling snow from around their car and late to work. I will even go so far as to stop and say boy that must suck shoveling that big long driveway. Well have a nice day and drive off. As a last resort it will go to a collections agency. The key is to make sure you provide for this in your agreement.


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## hankhill (Jun 1, 2010)

wow thank you for the responses guys, I really like the idea of the seasonal being payed at signing, jan 1st and march 1st, but how do you know how much to charge for that it should deffinately factor driveway size so I would think each account would have a bit of difference in pricing


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## hankhill (Jun 1, 2010)

Mackman;1055415 said:


> I collect payment with a baseball bat and a gun. It works kinda good.


my favorite method yet


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## ff610 (Jan 9, 2009)

I send bills off every 2 weeks for the most part. I have most of my customers set up electronic so it goes pretty smooth. It takes too much time to bill after each storm, and if I did that I'd never get anything else done.


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## dumbyankee (Jul 30, 2010)

Hank: If your new I will advise you to stay away from seasonal bidding for a year or two. You need to collect some of your own data and compare it to the past history of your area. (Snow fall) The way it works, you take the average number of plowable storms that you do times the rate for the driveway then divide by the number of payments. Example: you plow a drive lets say ten times in a season, you charge $20 for the plow ($200).
then divide by the number of payments 2 ($100) deposit next hundred first of Feb. Heres the catch, its not allways a top seller. You have to sweeten the pot some times, Reduce the rate by a few dollars, then add a clause if the season produces more than 10 storms you add a few dollars. You can usually sell them on the reduced rate, and make it your selling point, let them know about the expanded rate after 10 storms but dont spend a lot of time on it. I do have a few clients that want a seasonal agreement. Most like the push method because they are paying for what they get. Most of my collection issues are with seasonal agreements. They dwell on the good deal they got at the start of the season, then we end up getting dumped on and trying to collect for the extra storms sucks. I hope this helped.


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## dumbyankee (Jul 30, 2010)

I would like to add the best billing method is the one you set up that works the best for you and your customers. There is no right or wrong.


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## ff610 (Jan 9, 2009)

dumbyankee;1055647 said:


> I would like to add the best billing method is the one you set up that works the best for you and your customers. There is no right or wrong.


You are absolutely correct!


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## redman6565 (Jul 14, 2008)

hankhill;1054112 said:


> Hello, I am going to be new to plowing this coming season, I very much like the trigger method and would like to set 3" but how do you guys document each time you plow and give the bill to the customer? because the customer could just deny it and say you didnt plow at all then what?


buy a cheap triplicate form at staples or wal-mart. if you can, have the customer or somebody living in the house sign, or fill it out yourself and leave it wedged in the door or in the mailbox.


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## grandview (Oct 9, 2005)

redman6565;1059935 said:


> buy a cheap triplicate form at staples or wal-mart. if you can, have the customer or somebody living in the house sign, or fill it out yourself and leave it wedged in the door or in the mailbox.


To much time dicking around when you should be plowing. If they are always trying to cheat you ,you don't need them as a customer.


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## hankhill (Jun 1, 2010)

I've been thinking a lot and I'm going to offer the "per trip" and seasonal methods of payment I think they would be the best two, I also need to make up a contract for them to sign now


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## redman6565 (Jul 14, 2008)

grandview;1060061 said:


> To much time dicking around when you should be plowing. If they are always trying to cheat you ,you don't need them as a customer.


na, it takes two minutes to run and have a cashier chick quick sign the bottom of a ticket. and that's commericially speaking, I imagine it'd be faster residential because there are no lines, customers, etc.


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## hankhill (Jun 1, 2010)

yeah but they cant sign if they are not home which is my problem I'm figureing most of my plowing will be done early morning or late at night


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## redman6565 (Jul 14, 2008)

hankhill;1061016 said:


> yeah but they cant sign if they are not home which is my problem I'm figureing most of my plowing will be done early morning or late at night


leave a pink copy in the mail box or wedge it in the front door.


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## plowatnight (Mar 10, 2010)

*collect*

Most (probably 90%) of these customers have Email. We bill most of ours that way. You really don't even need a form, just send them a note of when you plowed and how much to pay. If your a good provider, they'll likely be a good payer. If they don't pay, they're not a customer, they're a thief or a freeloading greasy fried onion welfare cheeseburger eating glump. I don't remove "their" snow.


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## Brian Young (Aug 13, 2005)

hankhill;1054112 said:


> Hello, I am going to be new to plowing this coming season, I very much like the trigger method and would like to set 3" but how do you guys document each time you plow and give the bill to the customer? because the customer could just deny it and say you didnt plow at all then what?


Last year we had pretty much nothing but heavy snows at an inch or two an hour with high winds. Well with those conditions it will look like you were never there 10 minutes after your gone. We had a few people call after they got the bill and tried the ol' "you were never here" as if they were up at 3,4,5am watching for us. I finally invested in a onboard camera system with GPS. It is one of the best investments we ever made. It does a few things, most importantly there is no way the doubting customers can say anything. Second, it records the obvious visuals with time/date stamp but it also records audio and vehicle speeds for the lead foot, equipment abusing employees so it keeps them in check. This squashed any discrepancies when it comes time to pay up for both customers and employees.
As far as billing, its always going to be a PITA. There are a ton of headaches that come along with plowing on your own. Just be prepared to handle b!tchy, disgruntled customers calling you just when you fell asleep after plowing for a day and a half.


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## Brian Young (Aug 13, 2005)

plowatnight;1061043 said:


> Most (probably 90%) of these customers have Email. We bill most of ours that way. You really don't even need a form, just send them a note of when you plowed and how much to pay. If your a good provider, they'll likely be a good payer. If they don't pay, they're not a customer, they're a thief or a freeloading greasy fried onion welfare cheeseburger eating glump. I don't remove "their" snow.


LOL, we have a couple of those we picked up this summer. I know just what to do with them this winter!


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## MICHPLOWER (Aug 13, 2010)

hankhill;1054112 said:


> Hello, I am going to be new to plowing this coming season, I very much like the trigger method and would like to set 3" but how do you guys document each time you plow and give the bill to the customer? because the customer could just deny it and say you didnt plow at all then what?


With a Double Barrel Shotgun for deadbeats that don't send payments!
Receive payment every-time!


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## 2COR517 (Oct 23, 2008)

I've been using the "mail a bill, deposit the check" method for years. Seems to work fine.


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## Westhardt Corp. (Dec 13, 2009)

Wait...and they _pay?!?!_

Now, just stop with the tomfoolery already...

:laughing:


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