Three Benefits Of A Recurring Revenue Model
While there are many attractive qualities of The Gents Place business, the recurring revenue model just may be the most appealing to business owners. At each location, we will always have walk-in customers on a daily basis, but the recurring membership model is at the heart of our business and culture. The convenience of auto-paying memberships and being able to come in regularly for services may be obvious to our members, but it’s also a very important benefit to our franchise owners as they make their business plans and prepare marketing spending and forecasts.
Needless to say, having recurring paperless deposits via automatic customer debits is much simpler than having to handle cash, checks, and credit card receipts. While being able to process transactions for walk-in guests and non-members is essential, the more automatic monthly transactions there are, the fewer one-off transactions have to be reconciled, and that will make your accountant happier (and your bill with him/her smaller).
What a base of recurring membership provides you with is a predictable starting point each month. There is a baseline of revenue that will come in, not including any additional upgrades and merchandise purchases that will occur. This helps not just for financial planning within the business, but provides clarity on when the busiest and slowest times are, allowing you to plan your staffing, push revenue, allocate marketing dollars, etc.
Perhaps the most important benefit of a membership model from a growth perspective is having a clearly identified group to market to. Our members already commit their time and money to us each month. They believe in what we are providing: helping men look and feel their best. So too, they are the most likely to be open to initiatives, be it something charitable like our partnership with Hiring Heroes called Operation Gentlemen or a networking event with fellow members, like what we did to commemorate the opening of our Southlake club.
We are a club of empowered Gentlemen — ready to plan, network, and change the world.