Legal Collections and Attorney Letters are way too much!

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…

Outsourcing Your Collection Process - First Party

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Did you know that you can easily supplement your existing internal collection process by outsourcing all (or part) of your overall decline management process to a Business Process Outsource (BPO) provider. For example, at First Credit Services we have built incredibly effective ways of communicating with past-due members and collecting their past-due balance quickly..., plus we promptly point the member back to our clients' front desk for check in. Our Health & Fitness Clients truly appreciate our expertise when dealing with Member Service Issues.

No matter what, our research shows that most gyms can do much more to proactively speak with their members, and build a better relationship with members who visit the club less frequently.

By taking advantage of proven strategies, staffing, compliance, and technology, it can prove to be VERY cost effective to manage your declines more effectively through a qualified outsource provider like First Credit Services.

Programs can start right at the initial decline, or 15-30 days later depending on your internal resources. E-mails, Calls with Live Member Services Agents, Texting, Mailings, are all effective ways to keep in touch with lost members. Every consumer responds to different contact methods, so build a campaign that takes advantage of all these different possibilities. 

Members really do want you to call them and tell them that you want them back... we can help facilitate the relationship! Gyms who show their past-due members that they truly value their patronage are always more successful.

The data and trend reporting available by a BPO is extremely valuable, and quickly leads to improved and more efficient use of resources. Most BPO's can consistently achieve better results with a smaller staff.

"Consistency" is a key word here as well, since a BPO has the ability to maintain consistent results and has the ability to be much more flexible with its resources to ensure proper staff coverage without interruption. A BPO Client does not have to worry about personnel issues, absenteeism, vacations, technology, etc. and reaps the rewards of faster cash flow. 

First Party Outsourcing, A/R Management, and Collection Policies should be a top priority if you deal with a high volume of declines each month.