I’m sitting in the Sky Club at Boston Logan, waiting for my (twice delayed) flight to Detroit, on my way home.  Accuweather just (an hour ago) came out with a projection showing that eastern PA, northern NJ, CT, MA, RI and lower NY will get yet another snow storm come through Tuesday night into Wednesday.   And the hits just keep on coming.  Wow.  A winter like this can bankrupt snow contractors who are dependent on seasonal contracts.  Surely do hope that doesn’t happen.

Same old mantra from me – collect the money.   Collections will become paramount in a few weeks.  Don’t want to hear the stories I know will be coming out about customers not wanting to pay.  Be on-guard.

And, get some sleep guys…..

For those in the mid Atlantic who were actually hoping for “one more big one” – I empathize….although I’m fairly certain some were thinking “oh no, not another one”.  So, the gang in Syracuse, Buffalo, Vermont, interior Massachusetts – who’s snowfall totals were below average this winter – now you get to “catch up” some.  Good for you.  Syracuse has just over a foot of new snow this morning.  Now – truth be told – a foot of new snow in Syracuse is not the catastrophic event that kind of snow creates in DC or Baltimore.  But, it’s nice for them to get some additional revenue out of the winter that has created windfall revenues for those areas lower on the eastern seaboard than Boston.

I happen to be in the Boston area today, and the contractors in the eastern half of the state are actually sitting this one out.  They are not at all happy about it.  This area is below average for snowfall this season – and watching a Monster Storm come off the ocean and (essentially) pass over this area is not fun for them (although, the area is still hard hit due to torrential rain that has befallen this market - but, snow contractors cannot generate much revenue out of rainfall).

So – will this be winters last hurrah for the east coast states??  I don’t think so.  From what I can see, the weather patterns are such that the eastern markets could still see one more blast – albeit probably not quite as deep as the past few storms.

Even if there is no more snow this winter – it will surely be a winter we’re all talking about for awhile yet.  I don’t think we’re done just yet.

Along the Atlantic coast, and as far inland as Pittsburgh – snow is creating collapse issues all over.  Buildings and garages are collapsing from the weight as snow gets wetter and wetter when temperatures rise – or it rains.  Now – snow contractors are not responsible for roofs that cave in – but parking ramps are a different beast.

Contractors responsible for clearing snow from parking lots where there are ramps and decks – beware.  YOU are likely responsible for any collapse that occurs IF you have not warned the customer or property manager about the potential issue.  And, it is happening in many states already.  As the contractor of record, it is your responsibility (in most cases) to advise the customer of the potential catastrophic loss that can occur from snow left on parking decks.  Just pushing it to the sides is not enough.  It needs REMOVED, meaning off the deck itself.

Customers may whine about the cost – if when that happens, tell ‘em in writing that you are advising them to have the snow removed from the deck.  IN  WRITING  !!!!!  Calling them on the phone is nice, but putting it into words will protect you in the long run.

Do It – and Do It NOW…..

My friend, Alan Steinman is sick.  He is going through something we all sincerely hope none of us need experience.  Life certainly is not fair – and we all see that sort of unfairness each day. 

Alan Steinman stepped up to the plate for SIMA awhile back, at a time when SIMA was struggling.  The leadership was in disarray.  Discord was part of the daily grind that comes with overseeing a non-profit – and it should not be that hard.  Something needed to be done, and Alan stepped up and said “I’ll take the heat”.

Many in the organization wondered if SIMA would last another year.  Everyone was reticent to take on the issues and problems that were the norm each day (at that time).  When Alan volunteered and stepped in, a good many folks were relieved, thinking “glad it’s not me”.  Others said “Alan???  Oh oh.”  Not real polished at times, speaks his mind (even more than I do), gruff on the outside, opinionated  (to say the least) – but also, willing to listen to others problems, offer advice, and very, very intelligent when it comes to fighting snow (amongst other things).

To his credit, he admitted up front he had no idea what was involved, and had no idea what to do tomorrow.  But, like the incredibly strong willed individual he is, Alan waded into the morass and acted like the proverbial “bull in a china shop”.  He didn’t much care what others thought – and he made it happen.  He got things straightened around.

There are those of us who believe it is entirely possible Alan Steinman actually saved SIMA.  If that is to be his legacy in the snow industry – I think that is just fine.

We love you Alan – and wish you well as you weather this ongoing storm in your life.

Time to step back, assess what has taken place the past several weeks, and plan for another storm later in the week.  Sleep, of course should be on the agenda.

Don’t be too quick to “get the invoices out”, because hurrying up the invoicing process will breed mistakes.  Some of these mistakes could be costly – and unrecoverable.  So – take another day, set the invoices aside on your desk, and review them once again before dropping them in the mail.  One more day is not going to get you paid sooner or later. 

Realize - that now the hard part begins.  And, be cognizant of the fact that a lot of your customers simply won’t like their bills and will ask for consideration and reductions.

Another storm is brewing for late NEXT week.  Where it’s going to hit is hard to tell at this point, but it appears it will drop snow through the middle section of the country and (someplace) on the east coast will see a fair amount of snow.

Of course, the guys in Colorado and Utah sure would like to see this system stall out over their area of North America for a few days.  Doesn’t look like that is going to happen.  Sorry.

I am constantly amazed how contractors think all they need to do is “remember” a conversation and that’s all it takes to stop a lawsuit.  The contractor gets a call from a property manager saying “we are tight on budget money, and we need you to cut back on the level of service we receive”.  So, they stop salting, or don’t plow at the previously contracted “zero tolerance” level and institute a 2” trigger for plowing.  All is well, until 3 years later the lawsuit arrives in the mail about someone falling in the parking lot / driveway / sidewalk a few weeks after the “new directive” came.  So, the contractor tells his insurance adjuster “we were told to back off – so this is not my fault”. 

Then come the lawyers.  “Prove the conversation took place”.  No…no – you HAVE to believe me… it DID.

Oh..oh….. seems the property manager can’t quite remember the phone call.  Not really sure what was discussed.  Might have been about a quote for next season…..or, maybe a compliment on all the hard work the contractor did – except for that one stretch when they didn’t show up a lot. 

Had the contractor sent in a fax, or sent an email confirming the innocuous conversation – something…..anything in writing to back up the “alleged” conversation….all this heartburn could have been avoided (for the contractor).

But – alas, the trusting contractor just didn’t think it was necessary to do that.  Heck…the property manager knows we had the conversation – and surely she wouldn’t forget she told me the Association / Property Owner / Tenant was out of money and didn’t want to spend any more….. SURELY…..

Oops.  Then the property manager might also say “Hey, Mr. Lawyer – please sue ME, not the good contractor – my insurance company can afford to pay out millions in damages”.

Yeah…. That happens ALL the time – doesn’t it…….

Hmmmm….. that’s what I thought.

Document……. Document……DOCUMENT, Damit !!!!!

East Nantmeal, Pa - 26.8”
Jim Thorpe, Pa - 20.0”
Baltimore, Md - 19.5”
Bricktown, N.J - 18.0”
Allentown, Pa - 17.6”
Philadelphia, Pa - 15.8”
Hershey, Pa - 15.0”
American University, D.C - 14.0”
Trenton, N.J -  13.8”
Ridgewood, N.J - 13.0”
Greenwich, Ct.: 12.5”
Bronx, N.Y.: 11.5”
Reagan National - 10.8”
New York City - 10.0 inches

I think this is just amazing…. Winter isn’t over yet.  Now the south (the “real” south, not south like Maryland) is getting it’s share of snow.  They don’t know how to react to this – and the sure don’t have many “snow contractors” in southern Alabama or Louisiana, now do they?

Articles are coming out about this being a budget buster winter – and that scares me.  Customers will likely lean on the snow contractors to “give ‘em a break” on the bills.  DON’T  DO  IT !!!!  Collect the money.  Unfair profits???  I don’t THINK so.  Remember back a few years when there wasn’t any snow to speak of - - how many of your customers called you to offer to pay you anyway ???

Be aggressive in your collections.  This might be a good time to start researching collection agencies. 

These guys know the snow business…. I recommend you look at their website and consider this as a viable option to get your money, when customers start dragging you out into July….

Steinberg, Stearns & Cruz

866-686-7254

www .steinbergstearnsandcruz.com

Here’s a few tips from Steinberg, Stearns and Cruz

TIPS and COLLECTION: FOCUS ON RESULTS

The goal when you make a collection call is to get paid. When a customer has a reason for non-payment, do everything you can to resolve the issue while still on the phone. If you need to look something up, ask the customer to hold if you can handle it quickly. If your customers’ reason for non-payment is cash flow, ask enough questions to legitimize the financial condition to determine if you are better off working out a reasonable payment plan. You want your customer to see and understand that this is urgent to you and that you are focused on a solution now.

TIPS and COLLECTION: STAY CALM AND PROFESSIONAL

It is easy to get emotional when one of your customers has not honored their commitment to pay. The problem is worse when you disagree with the reason for non-payment. This money is important to you and the best way to get paid is to not get emotional but to stay calm and respond in a professional manner. Most customers want to pay you and they will appreciate your company working with them toward a solution. If they have limited funds, they will always pay the creditor who was firm but courteous first.

TIPS and COLLECTION: LISTEN

It is important to listen to your customers’ reason for non-payment. Do not interrupt until your customer is finished speaking. Only after you fully understand the reason will you be able to properly respond and work on a solution to get you paid. In many cases, the best thing to do is to repeat the problem to your customer to make sure you understand it correctly. Your customer will appreciate that you heard and understand the situation. Keep in mind that just because you understand does not mean you agree. You will have your time to respond.

TIPS and COLLECTION: FOLLOW UP

You need to make your account a priority in your customers mind. There are two types of customers when it comes to delinquent accounts. The first has the means to pay as well as the intention of paying but they just simply want to use your cash for as long as possible. If you do not follow up in a timely manner when their accounts become delinquent, they will think that your credit terms are flexible and will continue to test your limits. The second type of customer has a problem paying. It might be a dispute, which you will want to address in order to maintain the good will of the customer. In most cases, however, there is a cash flow problem. If that is the case, you want to make sure that you become the squeaky wheel to make sure that your account is a priority.

NON-PAYMENT REASONS: DISPUTE

Disputes that are brought to your attention early are more likely to be valid. Regardless of when your customer raises a dispute, it is important to listen before responding. Often a dispute is only a portion of the invoice so your focus should be on getting the undisputed portion paid immediately while you investigate the disputed portion. Quick attention to a dispute is key to maintain customer good will and getting paid. It is also a quick way to determine if the dispute is just a stall tactic. One version of the dispute that you will need to be careful about is when the customer claims the salesperson told them something about payment terms or price. You will usually know if this is something that could have happened based on your experience with a particular salesperson. As always you will always want to explain your policy, but at the same time determine if what the customer is saying has any validity. You will need to use your judgment but sometimes it is best to make a reasonable modification to this invoice but clearly explain future policy or pricing. If the dispute is not valid then calmly explain to your customer your position and request payment.

NON-PAYMENT REASONS:  CASH FLOW

Cash flow and a dispute will be your most common non-payment reason. Often times a customers’ business can experience a temporary cash flow problem. Your willingness to work with a customer during these times can lead to a good long-term relationship. They will appreciate what you did for them when they needed your help and patience. At the same time you need to be reasonable and fair to your business and require your customer to show cooperation.

Demonstrate that you understand their situation and that your company has a policy to work with good customers who experience temporary cash flow problems.

Let them propose what they are able to do. Get details of where this money will come from. If the timeframe is reasonable, then accept the plan and confirm it in writing and ask that they acknowledge the plan by signing it as well. You will need to use your judgment on what is reasonable. The amount of the invoice and history of the customer are also variables that you will need to consider. Usually plans that get you paid over a 2 to 6 week period, which provide for some money now is reasonable. It is usually best to ask for post dates representing future payments.

If the plan is unreasonable, let your customer know that your policy requires further verification if you are to consider a longer payment plan. Get the name of other creditors who are not being paid or who have accepted longer plans so that you can validate your customers’ situation.

Not quite the whopper of last week, but close.

Snowfall totals as of 4 PM Eastern Time:

Binghampton, NY     7.0”

Hazleton, PA           10.5”

Bernville, PA           18.0”

Atlantic City, NJ      3.2”

Ewing, NJ                9.6”

Florence, NJ            10.0”

Wilmington, DE       9.8”

Martinsburg, WVA  16.0”

Leesburg, VA           12.0”

Eldersburg, MD        20.0”

Parkville, MD           12.0”

New Seasonal Records have been achieved in Washington, DC, Baltimore, MD & Philadelphia, PA

And – another one is getting wound up out in Texas panhandle.

Below are some storm totals for this past weekend blizzard, along with some interesting facts about the storm.

Washington, DC                 32.4”

Reagan Airport                   17.8”

BWI                                   24.8”

Wilmington, DE                  26.5”

Leesburg, VA                     34.5”

Johnstown, PA                   28.0”

Philly Airport                      28.5”

Elkridge, MD                      38.3”

Pittsburgh, PA                    21.1”

State College, PA                14.0”

King of Prussia, PA             23.4”

Swedesboro, NJ                  27.0”

Atlantic City, NJ                  19.3”

Cherry Hill, NJ                     28.5”

Galena, MD                         30.0”

Chester, MD                        28.0”

Columbus, Ohio                  9.0”

Dayton, Ohio                       7.7”

Indianapolis, IN                   5.3”

BWI broke the record for the largest two day snowfall….which was 24.4”

Wilmington, DE season to date snowfall is now 53.9” – second snowiest on record.

Washington, DC season to date snowfall is now 44.9” – the 3^rd snowiest season on record.  The winter of 1898-09 is first with 54.4”.

Philadelphia season to date snowfall is now 56.3 – the 2^nd snowiest season on record.

On Friday in Pittsburgh, PA 11.4” fell.  This is a record for a February one day snowfall.  On Saturday 9.7” fell for a storm total of 21.1”.

Oh baby….. it’s going to be a whopper.  Maryland, Virginia, DC, lower NJ, the Philly area….. going to get slammed. 

Good and Bad….

Good - It will do most of its damage early in the weekend.  Gives you time to dig out.

Bad – It will do most of its damage early in the weekend.  Customers will expect clean, wet pavement by Monday morning.  That will be a challenge.

Communicate with customers all weekend long if you can.  Tell them the straight scoop – and if they won’t be open on Monday – tell them on Sunday so they can prepare.

Next….

Another one is brewing in the lower mid-west.

Good and bad….

Good – you get a record breaking winter, with billings up 200-300% over last winter.

Bad – you get a record breaking winter, with billings up 200-300% over last winter….. and nobody has the budget to pay you.  That means extensive whining by customers.  They will string you out if you allow it.  Remember, you have to COLLECT the money before you can call this winter a success.  Be diligent in tracking who’s paying and who is not.  Anybody who has not paid you for the last monster storm should get a call TODAY !!!!  When they say they will cut the check this afternoon – send a courier service to pick it up.  That will cost you $50+ to do, but the expense will be worth it.  You will need the money in a week or two.

Stay on top of the money.  Receivables’ don’t pay for gas.  Cash does.

Fasten your seat belts…..it’s gonna be a bumpy ride.  Good luck gang……