The Snowmageddon is Over. Now What?

THE SNOWMAGEDDON IS OVER. NOW WHAT? In the wake of a mega snow, John Allin offers some advice on what to do if a client suddenly wants to negotiate their payments for services rendered. by John Allin. February 19th, 2010. Snow Magazine. Most of the U.S. has experienced a great winter from a snow contracting standpoint. Many areas of the East Coast are on the verge of setting all time records for accumulation, and with that comes all time high revenues for the contractors servicing customers. This is a good news/bad news situation. The good news – billings are up (in some cases) 200 to 300 percent. The bad news – receivables are up (in some cases) 200 to 300 percent. In 45 to 60 days, the really bad news may hit. Customers are “over budget” and will begin whining about paying those bills. Many will come to the contractors begging for some relief – wanting to “negotiate” the payment so they don’t have to deal with their own boss’s about how far over budget they are for ongoing maintenance expenses. This will be the time where we separate the men from the boys. You did the work. You were diligent in providing any resource available to get the customers sites cleared and safe. In some cases – the customers said “Don’t care what it costs – get me open.” Some of them actually meant it when they said it. But now it’s months later and the sun is shining. Time to strike you your check and they start wanting you (the snow contractor who went through some years with absolutely no snow, wondering how you were going to meet payroll) to “help” them out. In this columnist’s opinion – stay the course. Expect and demand payment in full. You did the work. You got no sleep. You spent your money up front to service their account. You should be paid in full. Let them cut the janitorial budget or the landscape enhancement budget – not your budget. They will threaten to take their business elsewhere if you don’t cut your bill by 35 percent. Ok, so they make the threat. My advice – stand your ground. My experience is the vast majority of these “negotiators” will NOT go elsewhere (especially if you have a multi year commitment from them). And, if they do go elsewhere, that might not be such a bad thing. If it is their practice to beat up the contractor after the event has passed – someone else deserves that kind of attention, don’t you think?