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Subscription business with monthly automated deduction?

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  • Brit
    replied
    I like the idea but never worked out for me in the planning and all the quirks of dealing with some pet owners. The latter is why, and then when they want to cancel early and pro rated refunds. Some places you have to give refunds. It's all this latter stuff that turned me off to the idea.

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  • dogma
    replied
    Early in my business career I thought this would be a good idea.
    Figure the average time a dog should come in and charge them that for the year.

    It would be sort of like a gym membership.
    Say the average dog should come in every 6 weeks. At $60 a visit that would be $480 per year.
    Now, like with the gym, if those people came in every 4 weeks instead they would be getting a deal.

    But, like gym management hopes for, most people will come in less.
    So those that paid for the year, and came in twice, their appointment then works out to $240 each. This would then factor in the extra work that is involved in doing a TAY dog.

    This is also why “charging extra” to those TAY dogs doesn’t matter to them. It’s still cheaper then coming in more regularly. Say you charged $200 for that dog to “teach them a lesson” and said “if you brought them in every 6 weeks it would only be $60 a visit.
    But clients aren’t dumb. They think, “Yep. And if I come in twice a year it’s $400. I SAVE $80 by doing it my way”.

    This also rolls into giving discounts to your frequent clients. Great idea IF you figure the discount price is what you should charge to meet all your expenses. So, in fact, you are charging MORE and making more profit on the average client that comes in every 12 weeks.
    Most groomers, if they figure out at all what it costs to run their business and make a salary from it, charge their average clients that figure. So they are in fact losing money by giving a discount on their good clients.

    Keep all that in mind when you are setting your prices.

    While I think a subscription pay program would work I have never done it. I don’t have the Follow Through to go ahead and sell this idea to clients.
    I think it would work especially well in a business that is almost fully booked. Or a specialty business such as Emma’s. The more people want to use your services the more leverage you have to set up specialized programs.

    Good luck on this Emma. I’m following along. I think this could work for your business and the clientele that you have. Just make sure you Do The Math so you don’t end up not making enough.

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  • Emma123
    replied
    I haven't figured out a way to make it work yet.

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  • Teena2
    replied
    Emma what did you decide?

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  • Emma123
    replied
    I looked again at her site. The price blew me away. I get that it has value. Still felt really high.

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  • Emma123
    replied
    Working toward it. For now, am going to start asking clients to pay in advance for the next visit - if they want the special much lower rate. They don’t have to book the appointment in advance, they just need to pay in advance. I want to have more to offer before I test the subscription model. Really needs to be a deal so good that it would be crazy to turn down . . . And I want other products to include in the offer.

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  • CathyB
    replied
    Emma did you ever do a subscription business?

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  • Bjorn
    replied
    Interesting potential, glad to learn more about options

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  • Emma123
    replied
    Thanks! I looked at her site. Helpful.

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  • lyttleravyn
    replied
    There is a housecall cat groomer in California that does something like this. Deborah Hansen, she has a website where she helps groomers do a similar system Kitty's Kopy Kats. She'd be one to ask about it.

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  • Brit
    replied
    You would definitely need to have a contract they sign if you are auto billing someone. Plus cancellation and refund policies, very complicated. Such as someone renewed for a month last week and then wants out. That may be regulated by state law. I remember long ago in CA you had so many days to back out so could be something where you are. I will let you know if I see a groomer that does this.

    I don't think this is the same thing, but Jay Scruggs had a membership deal of some sorts for his grooming clientele?

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  • Lilliput
    replied
    That sounds like an intriguing idea. You could even sell different "levels" of service. Following.

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  • Subscription business with monthly automated deduction?

    I am interested in changing my housecall cat grooming business to a subscription service, where payments are automatically deducted. This is because many of my visits are for recurring maintenance such as claw trims and brushing.
    Do you know any groomers who do this?
    Do you know where I could find information?
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