# Per Push client wants to pay monthly



## plowgirl67 (Nov 11, 2018)

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 (Aug 12, 2012)

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 (Jun 11, 2018)

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 (Oct 29, 2014)

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 (Dec 4, 2012)

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 (Nov 11, 2018)

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 (Oct 29, 2014)

plowgirl67 said:


> 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 (Aug 15, 2014)

Randall Ave said:


> 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 (Oct 29, 2014)

cwren2472 said:


> 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 (Dec 10, 2000)

Where's @Ajlawn1 red flag pic...


----------



## Randall Ave (Oct 29, 2014)

Mark Oomkes said:


> 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 (Jan 2, 2009)

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 (Dec 19, 2006)

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 (Jan 2, 2011)

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


----------



## leigh (Jan 2, 2009)

John_DeereGreen said:


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


 A lot!


----------



## WIPensFan (Jan 31, 2009)

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 (Aug 12, 2012)

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 (Oct 29, 2014)

leigh said:


> 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 (Oct 15, 2012)

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


----------



## ponyboy (Dec 19, 2006)

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


----------



## MSsnowplowing (Nov 1, 2012)

I have a mixture of payment schedules for per push, the general being 7 days due upon receipt of invoice. 
The bigger companies do a 30 day upon receipt of invoice.

Make sure you have you stated in the contract what the billing terms are and you have the right to stop service if payment has not been received.

*Compensation / Payment Exhibit*

Based on the set fee, described in the attached Exhibit B, the Client agrees to pay the Snow Contractor for this service as follows:

Payment is expected within 7 business days after the invoice has been received.

The invoice will be emailed or faxed to the client.

Any invoice or scheduled payments not paid within 7 business days of the invoice can be subject to a 5% late charge.

Any invoice or scheduled payment not paid within 30 days of the invoice can be subject to a 2% monthly finance charge until paid in full.

A service charge of $35.00 will be charged for any returned check.

The contractor reserve the right to suspend service when payments become more than 7 days past due

This is for a week, and I just change the days to 10,15 or 30 days.

On the right to suspend service if it is a 30 day billing, then I change that to 35 days. and the rest.


----------



## BUFF (Dec 24, 2009)

All my customers were per push resi and com. I chose to invoice monthly, it made it easier tracking invoices and payments along with less trips to town to the bank. Aboot 7yrs ago had a com customer ask aboot e transfer for payment and eventually all com customers were paying that way. Aboot 5yrs ago I got most my resi’s yo got to e tranfser. My only hold oots we’re older people that could use email ok most of the time.
Terms for resis was 10days, com varied from customer to customer but marketing were 30days with the execotion of tow which were 45days. Nice this aboot e transfer is I was being paid on time per the terms and going to town to the bank a special trip and wasn’t as often.
Also had a coulpe com customers that I did summer maintainence / mowing for that I had seasonal contracts, rather than billing monthly during the growing season I spread out the contract value over 12 months, I also buried a convenience fee into the cost. By doing this it allowed the customer to accrue and spread out the cost over 12 months and gave me to have income during the transition months along with operating capital to prepare for the next season.
As long as you’re getting paid and they’re paying in a reasonable amount of time what’s the big deal.


----------

