With tax season upon us, many people can expect tax refunds. This means they will have extra cash to play with. You may not find a better time of year for an excess of funds, especially during the financial squeeze of the holidays. With this in mind, tax season equates to the perfect time to capitalize on the extra money in people’s wallets.
What does this extra money mean for your gym? It means it’s a great time to bring in new members and, it’s an ideal time for members to pay their outstanding debts.
Capitalize on Extra Money
Tax season is a smart time to put extra effort into the collections process, like we do at Aldous & Associates. The chances of a tax refund are good, as three in four people get one in the U.S. Tax refunds are often for thousands of dollars, with an average of $3,200 in 2022. These thousands of dollars become extra money for a person to use any way they see fit.
In light of tax season, Aldous & Associates runs special promotions this time of year to incentivize people to use their refunds to pay off their debts with us. We understand that money may be tight for many people throughout the year and that our best chance at recouping outstanding debt is to reach out when people are likely to have extra money.
Your gym may want to consider reaching out to delinquent members as well. We recommend that gyms first try to get in touch with members about outstanding payments, as first party collections, and then send the member to third party collections after three months of no results. Whether your gym is able to collect payments yourself or Aldous & Associates does it for you, tax season is a great time to make it happen.
Tap Into a Sense of Financial Responsibility
At tax time, people are focused on a sense of financial responsibility, as they make sure they’re keeping up with their tax obligations. They go over their finances for the previous year to report on their taxes, and they figure out their contributions to the federal and state governments, determining whether they still owe any taxes or will receive a tax refund.
As this is a time of reviewing finances and taking care of financial responsibilities, it’s a good time to put outstanding gym payments into delinquent members’ minds. Just as people tend to be concerned about getting in trouble with the IRS, most likewise don’t want to run the risk of having problems on their credit reports. Aldous & Associates is able to report outstanding gym membership debts on credit reports, so this threat or action can encourage people to settle up their debts.
Find an Extra Opportunity
A surprising benefit of the collections process is that it provides an opportunity for your gym to reconnect with members and retain them. When a person settles their debt, you can focus on rebuilding the relationship and encourage the person to continue as a member.
Tax time is an even better time than normal to achieve this goal, as many people have extra money from tax returns. Your gym has a greater chance of getting people to pay their outstanding debts and also start paying new dues.
And, since you know most of your members are likely to get a tax refund, this may also be a good time of year to focus on extra sources of income in numerous areas. Your gym may be able to get a boost to your finances from extra services and gym merchandise.