Manual for Success, Volume 2 - Number 2 - 2007
By Celeste Kirby-Brown
The most financially successful fitness facilities throughout Australia and New Zealand have one thing in common – they have a high percentage of memberships on recurring direct debits.
Whether you implement your own system, or outsource it, direct debiting is a great strategy for maximizing the value of your fitness business. It makes good economic sense for a number of reasons;
- Recurring income increases your cash flow.
- A regular monthly cash income can be the difference between a business closing or thriving.
- Members on direct debits stay with you longer, increasing your retention.
- Direct debit memberships can, and should, be easier to sell, thereby increasing your sales.
- Recurring income increases the resale value of your business because it is seen as an asset on your Profit and Loss statement.
- Members that aren’t on direct debit cost more to re-sign (in terms of staffing costs, sales costs, and opportunity costs) than members on recurring direct debits.
- Recurring income allows you to predict your monthly revenue, and therefore manage your expenses more accurately.
To read more about how to maximize the value of your business through direct debiting, download the Guide below.
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