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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 09-03-2011, 11:44 AM   #1
Joey Scafidi
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When do you bill members?

Figuring out my billing situation now. How do you guys do it if someone joins in the middle of the month? Do you prorate and then start billing on the 1st, or do you start billing whenever they join??

Are there pros and cons to each? It seems like billing everyone on the 1st would be easier but if it's set up automatically then it shouldn't matter, right?

Thanks!
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Old 09-03-2011, 02:29 PM   #2
Stuart Brauer
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Re: When do you bill members?

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Originally Posted by Joey Scafidi View Post
Figuring out my billing situation now. How do you guys do it if someone joins in the middle of the month? Do you prorate and then start billing on the 1st, or do you start billing whenever they join??

Are there pros and cons to each? It seems like billing everyone on the 1st would be easier but if it's set up automatically then it shouldn't matter, right?

Thanks!
We allow our members to pick either the 1st or 15th of the month. So if thye join on the 4th, they would probably elect the 1st of next month. If thye join the 20th, they can pick the 15th of next month? Follow? Do they possibly get a few days of free training? Sure. But it's a method that we employed and works for us. We then schedule our payroll for the 8th and 23rd. Allows for the draft to hit, cycle through the banks and make sure it's in our account before our direct deposit goes out.

Prorate is not a hard formula, but makes things a tad more cumbersome.

Starting billing whenever they join is the easiest way, but then you have little bits of money drafting throughout the month, instead of 1 or 2 large collections (which is normally the preferred method)
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Old 09-03-2011, 05:43 PM   #3
Brian Strump
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Re: When do you bill members?

Our software can prorate billing, which is done if someone joins after the first of the month. After that, billing is done on the first of each month.
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Old 09-04-2011, 06:30 AM   #4
Thomas Baker
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Re: When do you bill members?

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Our software can prorate billing, which is done if someone joins after the first of the month. After that, billing is done on the first of each month.
This. You don't want 20 members paying at different dates at the month. This is also key to making sure your numbers are right on track, knowing what to hit on a weekly/daily goal, etc.
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Old 09-07-2011, 09:07 PM   #5
Damon Stewart
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Re: When do you bill members?

I want it to be as easy and convenient to pay me as possible. We allow people to schedule their payment on any multiple of 5 (1, 5, 10th, etc.) and prorate to the day they want their first full payment auto-debited.
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Old 09-07-2011, 11:22 PM   #6
Jonathan Kinnick
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Re: When do you bill members?

For us, the payment date is the date they start. I like having a steady flow of cash coming in throughout the month (although more people tend to start near the beginning and end of the month). It's also nice to not have to deal with prorating.
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Old 09-10-2011, 02:31 PM   #7
John D. Burch
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Re: When do you bill members?

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For us, the payment date is the date they start. I like having a steady flow of cash coming in throughout the month (although more people tend to start near the beginning and end of the month). It's also nice to not have to deal with prorating.
I agree with you Jonathan... MUCH easier to plan, budget and work towards your MONTHLY GOAL (we all have a goal we want to hit monthly right?) if you know EXACTLY where you are based on your billing every day...

To wait 5 - 15 days is a recipe for disaster...

Otherwise... how do you know if your pacing (business effort) is correct? How do you know if you need to bust *** to hit your goal or if you could kinda ease off killing yourself?
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Old 09-10-2011, 06:11 PM   #8
Brian Strump
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Re: When do you bill members?

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I agree with you Jonathan... MUCH easier to plan, budget and work towards your MONTHLY GOAL (we all have a goal we want to hit monthly right?) if you know EXACTLY where you are based on your billing every day...

To wait 5 - 15 days is a recipe for disaster...

Otherwise... how do you know if your pacing (business effort) is correct? How do you know if you need to bust *** to hit your goal or if you could kinda ease off killing yourself?
Why not bill with a prorated amount when they join(our software does this) and then bill on the first of the month going forward, and have your budget created from that? It's easier for us to keep track of everything that way.

I also don't agree in setting a mindset of "pacing" myself if we hit goals at a certain time of month. Our mindset is to continue pushing, and pursuing new members. We are happy with a good month where we reach goals, but we don't want to become complacent just because we reached those goals some point before the end of the month.

Either way, there's many effective ways to run a business. Ours works for us, and in the end, that's all that matters.
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Old 09-12-2011, 10:52 AM   #9
Justin McGinley
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Re: When do you bill members?

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For us, the payment date is the date they start. I like having a steady flow of cash coming in throughout the month (although more people tend to start near the beginning and end of the month). It's also nice to not have to deal with prorating.
Same here.

We used to prorate, but it was a pain.
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