member
payments
o
n t
h
e
Are you using the right
MONEY
member payment method in
your club? We look at the pros
and cons of a variety of models
T
he way members are charged So what models are out there and traditional contracts
to use a fitness facility can what are their pros and cons? We ask Typically an agreed fee paid by direct
vary – fixed contract, pay-as- the experts for their thoughts and take debit each month over a set time period
you-go and so on. And what a look at a selection of companies that “A major benefit of contracts is that they
route the operator decides to go can provide the technology and software to enable a stable and predictable cashflow
have a big impact on monthly cashflow. support each payment approach. process, which is particularly appealing
in the current economic climate,” says
Alister Rollins, CEO of The Retention
People. “Asking people to commit to a
contract may put them off signing up, but
TT DUNLAP
there is no solid research to show this.
“The other less obvious benefit is the
improvement in retention. Our research
shows that members on contracts stay
OCK.COM/SCO
on average five months longer than
.IST
those paying on a month-by-month basis.
WWW Taking an average fee of £35 a month,
T
O:
this equates to £175,000 additional
PHO income per 1,000 members.
“A 12-month contract has also been
shown to improve the member lifetime
beyond the contract. However, the
danger lies in assuming that a contract is
a retention strategy. Our findings show
that less than 40 per cent of members
renew at the end of their contract
period, although this still leaves a higher
proportion of members still paying than
if there was no contract at all.
“One fi nal word of warning is to check
your average life membership. While
some clubs offer a reduced price for
a 12-month commitment, you may
fi nd that your members stay longer
than these 12 months, so you will end
up with less income if the contract is
offered at a lower monthly price.”
software support
the harlands group
Harlands offers an outsourced direct debit management
solution: there’s no need to purchase software as the
payment process is handled remotely. A web-based log-in
area enables operators to view and download member
and payment information. In some cases, the Harlands
system can be integrated with on-site management
software to enable member data to flow to and from the
Online function With Harlands' Snap system, you
site. For members joining online, Harland’s Snap system
can join a gym and sign up for monthly payments
allows data to transfer in real-time to a club’s front desk.
to be automatically debited from your account
july 2009 © cybertrek 2009 Read Health Club Management online 53
healthclubmanagement.co.uk/digital
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