All gyms, regardless of size, member audience, or service offerings, are businesses at heart. And, in the world of business, getting paid matters. While it can be tempting to turn a blind eye to late member payments (especially if you’re a local community-based gym), these payments are how your gym operates on a day-to-day basis. Everything from utilities to maintenance to employee salaries can start becoming at-risk if cash flow is interrupted.
In order to maintain a steady payment schedule and keep member payments coming in on time, many gyms turn to their software and billing partners to facilitate the gathering of late gym payments. That billing partner would find members who have unpaid dues and facilitate the repayment of any back-owed expenses.
For many larger gyms, relationships with these software and billing companies are a must to ensure that missing payments are made and that members actually are keeping up with their payments. Independent gyms, on the other hand, often think that collections and past-due member payments can be handled in person or through the gym itself.
Unfortunately, this rarely works and often results in some serious consequences. It’s necessary to work with a billing company — or at least have a clear collections strategy in place at your gym — in order to ensure your business remains profitable and strategically successful.
Collections are incredibly important for a few reasons.
In order to remain successful and competitive in the health and fitness industry, gyms must be able to remain financially viable, which means they need to have cash flow coming in from members. When members fall behind on payments, collections can help put them on the right path or mitigate any outstanding risk.