Increase revenue with Fixed Term contracts
Most businesses move from client to client and job to job. That’s the case with professionals like personal trainers, carpet cleaners and hairdressers (and countless others). They service a client, they pay and then they move on. The problem with this type of business is that your cash flow is never a certainty and will always be dependant on a number of different factors (the mood of the economy, your ability to market and advertise, your level of service, the season, to name but a few). So, you start every month with zero dollars in your bank account.
Move to a position where you have guaranteed revenue coming into your business each and every month by offering fixed term contracts. Here’s how to do it:
- Work out what the average repeat customer is spending with you each year.
- Repeat Step 1 for standard spend and high spend customers (eg. men and women spend vastly different amounts at a hair salon)
- Divide that amount by 52 to determine a weekly fee
- Invite your regulars to join your VIP program, which move them onto an automatic debit system. Explain that it will save you both time and money, and as a VIP client they are going to receive extra privileges.
Something to consider is what incentives can you offer to move your clients to fixed term contracts?