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In times of economic downturn, non-payment is a big nightmare for all businesses, especially small and medium ones. This problem can create a snowball effect into a pilates studio. So this is a topic that requires a lot of attention so you don’t get into the statistics either.
According to the National Confederation of Logistics Officers (CNDL) and Credit Protection Service (SPC) Default Indicator, the number of people in debt in 2018 rose 4.41% compared to the previous year and already affects a record number of over 63 million people in 2019.
So what to do to avoid student non-payment in your pilates studio? Check out some precious tips!
Maintain Good Relationships
Having a good relationship with your students is a very important factor in avoiding non-payment. When nurturing a good relationship, the client will be more careful to avoid late payment to avoid potential embarrassment. With a closer relationship, it is also easier to charge them when needed.
Make a contract
Always make contracts with your students. In this way, the terms of collection in case of non-payment are assured, such as setting fines and interests in case of delaying the payment and deadlines to settle the debt. Should a court charge be required, the contract is also a guarantee for the owner.
Track Your Receipts
Keep track of your pilates studio finances daily, paying special attention to your receipts. This way you can catch non-payment issues before they become a major headache.
Offer Payment Options
Try to make your student’s payment as easy as possible. By varying payment options, your customer will have fewer excuses for not honoring the commitment. Try offering a discount for cash payments, for example.
A Help for the Forgotten
It is not uncommon for people to forget to pay non-essential bills like water and light. Therefore, an interesting way out is to think of a way to make a reminder to students as the tuition fee approaches.
In this case, it is worth consulting the students to find out if they want to receive these notifications, which can be done by messaging, SMS or email applications, for example. This avoids embarrassment and eventually tearing apart your relationship.
Know how to charge and be flexible to negotiate
Inevitably this will happen, so be prepared to charge your students. At this time, it is very important to take care of the approach to avoid losing the customer.
Put yourself in the student’s shoes and try to understand the reason for the non-payment. Also, be flexible about negotiating overdue payments to prevent the charge from dragging or having to reach a court charge.
The most important thing to prevent your students’ debts from becoming a problem for you is to act in advance. By following these tips, you can minimize the problem of non-payments.
It is always important to keep in mind that probably no one wants to go through the embarrassment of having to be charged, so empathy is always important to resolve the issue without losing the student. However, always think of your business first.
Enjoy and tell us in the comments if you ever had to go through some unpleasant situation due to default and how you resolved!