Gym Collections
It’s kind
of like using a sledge hammer on a thumb tack. Yeah, it gets the job done, but
the collateral damage is unnecessary and causes more harm than good. In an industry where the lifeblood of your future
revenue depends solely on how you are perceived within your local community, do
you really believe a member who owes you for a past-due amount of only $100-200
truly deserves to feel threatened by a law firm. It is widely known that consumers truly
believe they are being sued when an attorney letter pops up in their mail box,
when in reality a lawsuit is never even considered by the firm that sent the
letter (It just would not be cost-effective to file suit).
The
alternative is to partner with a collection agency who has your best interests
in mind (an agency with a lot of experience in health & fitness), and cares
about your future reputation. Look,
consumers know that if they fail to pay a bill on time, there are repercussions
for their delinquency, and generally speaking it is understandable if a
collection agency chooses to report the unpaid balance on the consumer’s Credit
Bureau Report. The collection tactic
that works best is to simply appeal to the consumers’ good nature and simply
inform them of their obligation to fulfill the contract they signed…, and try
to work with the member and get them back into the gym…, not threaten to sue
them!
Yes, there
is a time and place for a collection attorney, but it’s not on balances that
fall below $1,000. It is overkill, and you will see the negative impact after the
damage is done, and it’s too late.
Professionalism
and common sense always prevail.
Learn more
about First Credit Services,
and their professional Collection Approach which is geared toward Member Engagement, and maintaining a
very positive reputation for everyone involved. Maybe that’s why we maintain a
perfect A+ Rating with the Better Business Bureau…
