Getting Paid

[snowjoker]

How is everyone getting paid? Seasonal, per push or by the hour, or combo of each? I have a mix of seasonal and per push customers.

[wyldman]

Mostly all seasonal here.Only salt and removal are billed extra.

[Alan]

I screwed up, thought maybe I could do two choices. I do seasonal and push, will not work hourly.

[Bob Van]

Well Walt, you already know what my answer is. Per push. I tell all my customers, "Pay me for what I do."

Some one always has hard feelings with "Pay 1 price for the season contract"

If we only had 4 plowable events, then the customer feels like they were taken.

If we had 20 plowable events, then the plower feels like he's getting taken.

Hard feelings either way, unless you have a limit of say 12 pushes for that price and bill each time after that.

This year, per trip contracts have really paid off.
I have several regular customers that have been billed for more than $600 in January, due to our almost daily snow falls.

[CAMERON SERVICES]

I get paid per push by all of my clients and by the hour when I'm doing sub work. I used to do seasonal when I live in Toronto, however I find the weather up here to unpredictable for that.

[chtucker]

combo for me. I have one seasonal at 20k.

[JD PLOWER]

We service seasonal and per inch.

[Ohiosnow]

Per push = every 2" :cash

[Long0]

I have one sesonal and the rest are per push. During large stormes, people will stop me and ask if I will plow for them. I base their charge on an inflated hourly rate, and give them a lump sum price but never tell them the rate I base it off of.

Andy

[JohnnyU]

Per Push, everytime I drop the blade on their property (Boils down to about 3", unless I come back for drifing snow, in which case they are charged another full rate)

Works well for me! :cash

And like Bob said, the customer feels as though they only pay me for what I do.

[paulsoccodato]

Per push

[Mark Oomkes]

About 65-70% seasonal. The rest are per push. Salting, both sidewalks and lots is extra. So is removal\stacking\blowing.

We only get paid for what we do, also. We purchase\maintain our equipment, we carry insurance for vehicles and liability, we pay our employees above average wages for being available all the time, working rotten hours in crappy weather and we provide exceptional service. We store bulk and sidewalk salt and liquids to apply to keep their lots safe and clear. We also make a profit.

I'm not trying to upset anybody, just make you think a little more about what you truly are providing to your customer--not just snowplowing, you are operating a business in which you have to recover a certain amount of overhead to provide that snow plowing.

[JohnnyU]

Mark, I agree, but 99% of customers don't care about our overhead, expenses, equipment, etc. They are only concerned with getting the snow on thier property taken care of, especially the more "difficult" customers.

It only proves to be luck that the amount of billings on a per-push basis has been enough to cover those expenses these past few years.

The amount of snow an area usually gets is also an indication of the customers' desire for perpush or seasonal type contracts. We only average about 25" per year, although this year we are already at about 20". I would imagine that your area sees much more snow, as do manyother places in the US and Canada, therefore, there is more jusification for a homeowner to think about snow... JMO. Not trying to stip the pot, just telling it how I see it.

[Waterchikn]

I have a combination of situations. The most common one these days seems to be not getting paid at all. Some people go out of their way to get you your money..Others, you have to hunt them down and threaten no service for the next storm. This has been the worst year for people not paying...but one of the best years for snow in quite a while...Oh well, I guess you just press on and hope for the best! Plow on and be safe!

[PineIsland]

The guys who dont back up their company around here with at least enough seasonals to cover their overhead wont be in business long. Especially the way insurance costs have went up.

I'm not taking on that risk for a customer, they need to be willing to accept a certain amount of it.

Like Mark said, the time I spend actually in my truck pushing the snow across their lot is a small percentage of what actually goes into providing the service.

[CPSS]

Tom, I agree 100%. I have seasonal commercial accounts ranging from $1500 to $3600 each. All have already paid in full. The rest are per push, ranging from $75 for a small Instant Oil Change, to $500 for a large church.

The seasonals cover much, if not all of the overhead. After that, everytime it snows, it's profit. I remember one year a few years ago I only had per push customers, and it snowed ONCE all season. It was the dryest winter on record. After that I really pushed the seasonal contracts,( and of course, it snowed like crazy...), however now I really feel I have the correct mix. I'll make money if it snows or not.

[76chevyman]

Per inch for me :D :cash

Rich:burnout

[EIB]

All my commerials are seasonal and my res. are per push.

Everett

[Matthew Bowman]

Mark Oomkes explained it very well.
Seasonals for me also, around 90%. Unless someones snow bus. is on the side I can't see how anyone can run and grow a business on the hope that it snows. (unless your in an extremely snowy location) I am very curious as to how everybody that charges entirely per push can do it without another source of business or personal income to fall back on? I know what my creditors would say if I asked them if they could wait untill it snows before I send them a payment. Worse yet I know what the wife would say if the checking account was empty until the next snow, if it ever comes.

[SnoJob67]

Our area gets an average of about 26 or so inches of snow per season. Until last spring, everything we did was per occurrence or the rare hourly account. Since, I have come to the point that we do not offer snow removal on a per push basis unless we really want the account. Then, I still give the customer the option of seasonal pricing, if for no other reason than to get them used to seeing snow pricing in that format. Otherwise, we have enough work (and overhead to need a line of credit if it does not snow) that we will give the majority of our new customers a seasonal price only.

Many customers only want to pay for "the services they receive." Apparently, they think the overhead for the equipment, materials, manpower, insurance, etc. should come from our pockets in the event we do not receive enough snow? You can say this and say that and argue that your customers won't pay for it, but it is all crap. Somebody is willing to pay seasonally. Look at all the other contractors selling their services in this manner.

In theory, I can have a million dollars per push worth of business, but in the event it does not snow, I am screwed. Potential revenue does not pay the bills. We have quit letting the cutomer tell us how to price our services and will decide from a more simplistic point of view how we need to price our services for profitability. From a commonsense standpoint, a mix of accounts is the best way to build a steady stream of revenue and cover yourself in both years of heavy and light snowfalls. Maintaining a steady revenue stream is what being in business is all about, is it not?

[4evergreenlawns]

I started out really pushing seasonal work. However last season my seasonal account made up 65% of my accout list and only yeilded 35% of total season profit. Had I not had the per push accounts which yeilded 65% of all profit I would have really lost my $#%.

Also seeing how we have really had light winters selling the season work has become a real issue with most clients haveing a hard time remembering we plowed and salted like crazy in late Dec. and Jan. when they paid the other three months without seeing any snow that last for more then just a few days.

I have changed my rates plan just a little to reflect more of the "pay for what we do" and apply if both to plowing and salting rates. It reads like this:

Scope of Work

1.Snow Removal- Plowing will commence upon accumulation of between 1-2” or more of snow. General snow removal will consist of snow plowing of the entire parking area/pump area, and car wash area. All reasonable attempts shall be made to clear snow, which has fallen by 6:00AM when reasonable and as weather conditions permit. On going snowfall during normal business hours will be removed from access and egress when reasonable and as weather permits. BILLED PER VISIT IN INCREMENTS NO LESS THAN ½ NOT TO EXCEED 2.

2.Ice Management -will consists of spreading of rock salt as needed and reasonably justified by weather conditions. Salt spreading shall be performed in conjunction with Snow Plowing operations and/or when most prudent in an attempt to reduce the forming and/or reforming of ice. Salt shall be applied evenly and consistently by professional commercial grade equipment to the parking area, pump area, and car wash area. BILLED PER APPLICATION IN INCREMENTS NO LESS THAN ½ NOT TO EXCEED 2.

*Excessive Accumulation- Any one snowfall of 12” or more will incur a one time surcharge of $XXX.00. All other snowfalls of greater than 2” but less than 12” will be cover under Items 1 & 2 of the aforementioned provisions.

We use trip ticket at every job and then I follow up with a hand delivered invoice once a week and a set up if there was service during that period. This keeps things from getting backed up while the snow/ice event is still fresh in their mind. Also allows for feedback both ways should there been any issues on either side.
This has been working for me and my clients seem to be happy.

Not the answer for everyone I am sure just what works for me.