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Old 09-10-2014, 11:44 AM   #2
Tommy Alfinito
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Join Date: Apr 2008
Location: Mount Laurel  NJ
Posts: 275
Re: Reducing Member Churn Rates

This is why I don't do contracts - you end up with one of two options - letting people out of their contracts which completely takes out the positive benefit of a contract or making people who aren't happy stay and pay money.

If you do decide to go with contracts, there should be a decided upon buyout clause in the contract. This way if someone wants to terminate the contract you can simply say ok it is x% of whats left or 2 months of whatever works for you. Another option I have seen is making people pay back the discount they received by signing a contract.

I run month to month and my turnover is really low. I think people equate a contract with fixed income, but an unhappy customer is going to cost you in some way. Either getting out early, creating a negative presence in your classes, or by bad mouthing your gym to others.

I am not saying contracts can't work, many gyms make them work, but I have used it as a selling point for us that we don't have contracts and that has worked well for us.
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