Regular monthly client payments

[Amanda Hubbard]

Hi everyone,

I was just wondering if anyone has any experience in regular monthly direct debits from clients.
Someone has suggested to me to run a sort of "club", where clients pay a certain amount each month and it entitles them to eg 12 facials over the year but the direct debit would mean that they pay for 10, in effect getting 2 free for setting up the regular payment? And maybe a little gift at the end.

What's everyone's thoughts on this?

Xx

 

[KrisKross]

I think this would be a time consuming admin task.

Pretty sure there are fairly stringent rules around setting up direct debits, you'd have to go through a vetting process yourself and I doubt you'd be approved for something like this.

You'd end up having to get the clients to do a monthly PayPal/bank transfer instead - for which you'd need to send reminders, check the money has landed in your account, chase people up when they inevitably don't get round to paying, etc.

Might as well just give them a loyalty card giving them 2 free treatments once they've had 10, because that's all you're effectively doing.

 

[Amanda Hubbard]

I think this would be a time consuming admin task.

Pretty sure there are fairly stringent rules around setting up direct debits, you'd have to go through a vetting process yourself and I doubt you'd be approved for something like this.

You'd end up having to get the clients to do a monthly PayPal/bank transfer instead - for which you'd need to send reminders, check the money has landed in your account, chase people up when they inevitably don't get round to paying, etc.

Might as well just give them a loyalty card giving them 2 free treatments once they've had 10, because that's all you're effectively doing.

Thankyou, thats great advice x

 

[Rachael.V]

Great idea but I agree with above, unless it is a direct debit (which I think aren't that simple to set up unless you're a big business) you will be forever chasing up people who haven't paid, forgot to pay etc. Maybe put a 10 month time limit on your loyalty cards so they would still need to have the facials 1 a month to get their free ones at the end?

 

[Amanda Hubbard]

Great idea but I agree with above, unless it is a direct debit (which I think aren't that simple to set up unless you're a big business) you will be forever chasing up people who haven't paid, forgot to pay etc. Maybe put a 10 month time limit on your loyalty cards so they would still need to have the facials 1 a month to get their free ones at the end?

That's a good idea, thankyou x

 

[kaysmith87]

There are 3rd party companies who I can do the direct debit from. In the process of setting it up myself for skincare products.

 

[squidgernetball]

Direct monthly payments are easy to set up. This is a good idea in theory and something I considered some time ago. I just haven't bothered.

A friends salon did gold silver and bronze membership. They were all different prices and different deals - gold was £120 pm but you got £150 worth of treatments and free brow tidies etc and discounts on products (or similar). She would also have private launches that only club members could come to. It's a lot of admin.

Vic x

 

[BannerPenguin]

GoCardless are great for people Direct Debits. No minimum threshold, no monthly fees and easy to setup. I use this for my clients taking hosting/care plan payments.

GoCardless just charge a very small fee per transaction. Worth it