Key Takeaways:
Drafting an acceptable gym cancellation policy requires more than a little thought. Here are a few mistakes you need to avoid when preparing one:
- Having the wrong mindset
- Not setting clear terms
- Being too rigid
- Not knowing when to communicate about the cancellation policy
Your gym needs to make a profit, period. How long you can keep offering personal training depends on how much money you make from your fitness business. A business may have to be shut down before it’s time if there isn’t a solid financial and marketing plan in place.
One strategy to increase foot traffic is to satisfy existing customers. Increased gym membership sales are directly proportional to the number of active members. Most money made in the fitness industry comes from people buying gym memberships. They also provide a steady flow of cash into your company.
You can also increase profits by offering a personal training package and add-ons. These packages may include health coaching and nutrition services for clients interested in improving their diet. People will pay if you provide value to them, and you can charge more for an enhanced package.
Another way you can increase revenue is by providing digital fitness tools at an added cost. Most people are increasingly dependent on technology in almost all fields today. You could develop a fitness app to sell to your customers.
One of the most effective ways to maximize profits, though, is through memberships. You want to retain all your members, of course, but there comes a time when someone wants to cancel their membership plans.
You need a strong cancellation policy in place to ensure that those clients wishing to cancel are accountable for any balances owed to you before they leave. This article explores the common mistakes that can be made when drafting a gym cancellation policy.
Understanding a Gym Cancellation Policy
A gym cancellation policy is a set of rules that members must abide by to terminate their service. Written cancellation policies are highly recommended for preventing misunderstandings and providing evidence of what was agreed upon when the client signed up.
Your cancellation policy should be reasonable, as should the rest of your terms and conditions. Unfair contract conditions are invalid under the law and cannot be enforced. You are responsible for informing customers of any cancellation policy, including any associated fees, when they enroll.
Customers who sign up for your gym services after becoming familiar with your cancellation policy are bound by those terms and conditions and must comply with them before they cancel their memberships.
Mistakes You Should Avoid When Drafting Gym Cancellation Policies
Drafting a gym cancellation policy is a vital step toward protecting your business. It is equally important to avoid the following mistakes and bad practices when doing so:
Not Having the Right Mindset
It’s essential to look at the cancellation policy as a means of encouragement, not as a punishment. People are far more likely to use a service regularly when they’re paying for it up front.
Clients choose your gym for a variety of reasons, but they all stem from the same ultimate goal – to get healthy and fit. They won’t get very far toward their targets if they begin missing sessions.
Missing sessions is not just a waste of your time but also a massive disservice to the customer. A mutually beneficial cancellation policy is essential for enforcing your cancellation policy without being rude.
Drafting Unclear Terms
The conditions of your cancellation policy must be very clear if you want it to be effective and straightforward to enforce. The bare minimum that needs to be spelled out is:
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- The time limit for canceling a session at no cost
- What happens if a customer fails to give adequate notice when canceling a session
- Considerations for the canceled billed session
- Any applicable cancellation fees
- What happens if the personal trainer needs to cancel a session without advance notice
Providing your clients with a clear understanding of what is expected of them – and what they can expect from you – helps any future cancellations go smoothly, with no hard feelings on either side.
Being Too Rigid
Clients are less likely to cancel on you at the last minute if you have a solid gym cancellation policy, barring any unforeseen emergencies. There are, however, situations in which a modicum of empathy can go a long way.
Examples of successful strategies employed by personal trainers include requiring written documentation in an emergency, being reasonable when there is a good cause, and offering a one-free-pass-per-session block, which is especially popular with long-term clients.
Not Knowing When to Tell Members
Discussing your cancellation policy with customers is crucial. It’s essential to be transparent with prospective clients about your cancellation policy at the time of the initial meeting. Double-check that they have read and agreed to all the terms before signing them up for your services and if necessary, have them sign a contract.
Some people seem to have so much happening in their lives that they lose track of things. Set your system to send periodic reminders to all of your clients, and don’t waste the chance to explain your cancellation policy.
You can help them remember when their training sessions are and prepare them for the consequences of missing them.
A cancellation policy must be set with the right mindset. Only then can you set it as an incentive rather than a punishment. Remember to let your members know about the cancellation policy in advance. Avoiding these mistakes up front will help you steer clear of the following issues that can arise from them.
Problems You Might Face Drafting Gym Cancellation Policy
Drafting a gym cancellation policy might not seem terribly complicated, but you will likely run into a few issues along the way. These problems may include:
- Not knowing the amount of penalty you should apply
- Being unfair in the way you treat client cancellations
- Facing clients who would rather not pay the cancellation fee
- Not providing the proper channels of communication to communicate cancellations
Get Help from the Experts
Drafting a comprehensive health club cancellation policy that is fair to both parties is a vital part of running your gym. The professionals at Loud Rumor can help you draft an excellent gym cancellation policy that will leave both parties satisfied. Contact us today.
