There are two methods for
collecting dues worth looking
at. The first is group collection
and the second is individual
collection. Both have their
merits and drawbacks, the
differences are detailed below.
Group
Collection
This is likely the most common
form of collecting dues for
smaller clubs. The dues for
the entire class are collected
on the same day, usually the
first class of the month.
Certainly
this is by far the easier
method for keeping track of
the monies. You only need
to have your receipt book
handy for that week, as everyone’s
pay date is the same.
There
are two issues you will have
to deal with here, both center
around the collection time.
a)
It is likely that your rent
is due at the beginning of
the month also. This means
that if you are not bringing
in double your rent every
month, you could be caught
with rent due before you have
collected enough dues from
students.
b) Your students (and parents)
are likely in the same situation;
their bills are coming up
at the same time as club dues
are due. The first of the
month is a busy time for mortgages,
rent, car payments, etc.
A
possible solution here is
to change the date for dues
collection to the middle of
the month. This way the students
(or parents) are likely to
have a little more disposable
income to make payments on
time. As well your club rent
or lease payment should always
be on time as you have the
funds in your bank account
well before the payment date.
Individual
Collection
This payment method often
used in the fitness center
type establishment. The student’s
dues are due in 30 days stretches
but they are based on the
individuals start date.
To keep track of this style
of payment great care needs
to be used; more often then
not this is handled by computer
& database.
*This
type of system usually runs
in conjunction with membership
cards and can be a good source
of free promotions by having
attractive membership cards
in circulation.
The
benefit of this style of payment
collection is that if you
have a large enough student
base then you will have a
regular income, not just the
one time monthly. This system
is really meant for larger
operations as with large numbers
it would be too slow &
difficult to collect dues
from all members at the same
time. So if you find yourself
needing to adopt this form
of collection then consider
yourself lucky!
The
down side to this form of
collection is that in any
given month, despite knowing
you have X amount of dollars
coming in you may or may not
have the collections come
in when needed. With larger
numbers come larger fluctuations
in enrollment turnover, late
payments, etc.
While
after examining both methods
of payment types; each with
their own merits, there is
still a lingering problem
of dues collection affecting
your own bill payments.
A
remedy worth pursuing is to
make sure you have at least
2 (two) months dues in the
bank at all times. This will
help prevent your club from
falling behind while waiting
for payments from students.
Browse
the Journal