Cash discounts are excellent incentives for advance payment at a rate that is usually lower than the prevailing rate which is normally higher for prospective members who choose to make monthly payments which can also include interest. It also is a reduction in price given to the prospective member for prompt payment. For me, cash is king.
In today’s economic climate, cash is king and MMC® specializes in raising cash, monthly receivables, and increasing member retention through our profile targeted health club marketing campaigns.
One of our most impressive campaigns is our cash campaign (https://www.healthclubmarketingmmc.com/cash-promotion/) MMC® has been raising cash for the sports industry since 1991. MMC® has raised over 50 million dollars in cash for our clients.
Cash discounts are not discounting or giving health club memberships away; it is getting the same amount from the prospective member because you minimize your collection and bad debt by accepting cash payments. Here is why I say it is a huge advantage. When you are dealing with billing and collections you will incur a lot of man-hours besides other fixed cost and variable costs associated to the billing process for your health club.
When you take in consideration all of the dollars, all of the costs associated, billing and collections and you then you choose to give a cash discount for your health club membership, you will always be ahead of the game because not only do you have associated costs to billing and collecting your receivables but you also have a certain percentage of fall out and bad debt.
By offering a cash discount, you not only eliminate these problems but you also eliminate a lot of overhead. Do not confuse cash discounts with discounting. They are not the same.
Cash discounts are incentives to get prospective members to pay upfront in full today. There are numerous ways to incorporate cash discounts into your business model and health club marketing. You can give cash discounts for health club memberships, cash discounts for personal training, cash discounts for purchases in the pro shop, etc.
“A bird in hand is better than two birds in the bush”, this old wise saying is even more relevant in today’s economic climate.
Incorporate cash discount promotion into your business model and your health club marketing and you will grow your health club and your health and fitness career.
For more free tips on increasing your health club membership base through health club marketing, health club promotions, professional health club membership sales, and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-448-5727.