Collections and Cancellations
June 23, 2022
There are many benefits to owning and running a fitness facility but there are some really tough aspects as well, like collections. When many of our members gathered for the 2022 NIHCA Spring Conference and Exhibit Expo we talked to each other about collections. There was concern from some clubs about how long to wait for payment and when to take action. We have gathered that information for you!
The biggest take away that we want to emphasize were the wise words of a facility, “Be Strong and people will adjust”. On average, most facilities wait anywhere from 1-3 months before they cancel the membership due to non-payment. Automatic payments from a bank account are much more reliable than monthly billing or automatic credit card payments. Check with your software because there are some systems that will automatically rebill if payment is not completed after 5 business days!
The most important thing to do is communicate! We recommend Call, Call, Email, Call and this should be repeated 2-3 times. The manager should be reaching out if someone at your facility has not been assigned to this task. There are options to send past due collections to an outside agency, however, many of these will take 30-40% of the recouped funds.
Use which method works best for your facility and circumstances, but if your current practices are not bringing in those collections, we recommend you give another method a try. Do not forget to update your policy and procedures!