By: Sal Corrente
Director of Customer Relations- Seas & Associates, LLC
Working with ABC Financial over the last 16 years, I visited more clubs than I have fingers and toes to count. I spent countless hours helping people with back office operations, discussing income, expenses etc. Rarely was there much time spent talking about Bad Debt Collections. It is only recently since I have transitioned to my new role as Director of Customer Relations at Seas & Associates that I have given a more in-depth look into how bad debt collections can become more impactful to Health Clubs.
I have spoken to many club owners over the last 4 months and found that those that have been participating in bad debt collections are looking for a softer, more consumer friendly approach that they are not getting today. In many cases, the Clubs don’t want to make a bad impression and gain the negative reputation that comes along with attempting to collect on delinquent accounts; especially when the member only has to pay you if they want to.
You probably spend a lot of time trying to come up with new profit centers and revenue streams, when you have one right at your doorstep. If you aren’t using a bad debt collector now, I urge you spend time considering Seas & Associates because you could be leaving money on the table.
While no one likes a membership agreement that results in bad debt, it is unavoidable. The mentality of many health club owners is that the money and member are lost; but here at Seas & Associates, we take a difference approach. Our primary goal is to get your members back on your books. We will use our friendlier, softer approach to illuminate the positive experiences of a healthier lifestyle when using your health club. If reinstatement isn’t possible, our primary focus becomes collecting your money.
Most Club Owners look at money from the bad debt servicing agent as money that has fallen from the heavens, but what matters most is how you use it. Do you treat it as discretionary funds or lunch money? I highly recommend a separate fund; perhaps even a separate bank account that is treated as a homemade Christmas club. At the end of 12 months of collecting, do something impactful for your facility. It could be something as simple as a fresh coat of paint, a new piece of equipment or an employee appreciation party.
If you are reading this article, more than likely you are an ABC Financial Services customer. You have already made the right choice in getting the industries leader in club management software and payment processing services. Why not allow a trained professional at Seas & Associates help you with getting members to live up to their commitments. It’s a very competitive time in our industry. How much money is your competitor collecting because they are not allowing members to simply walk away?
Writing this article was worth the time and effort if I have caused you to consider collecting on your bad debt accounts. Let Seas & Associates start ramping up your collection efforts today! Remember, retaining a member is just as important as getting new ones. Please feel free to contact me at (866) 992-8951 or via email at firstname.lastname@example.org.