Cash is the lifeblood of every business, but sometimes getting cash into the business is harder than it should be. Subscription payment services and recurring billing are great ways to automate and improve business processes and get cash into your studio efficiently and regularly.
How Do Recurring Automatic Payments Work?
Recurring billing payments are payments from customers that happen automatically, on a regular schedule. Setting up a recurring payment is easy.
First, you need a processor to make recurring payments. (The Studio Director can help you with this.) Then, you need written permission from your customer to start a subscription billing program.
Once you have your customer’s permission on file, you upload their payment information into the system. Then, with a few clicks of your mouse, you’ll set up the billing intervals, and you’re done! The billing process will continue to recur for your client, and you’ll be able to spend your time working on your business instead of in your business.
Who Should Use Recurring Payments?
Recurring payments are great for businesses that bill their clients the same amount of money over a certain period, like dance or gymnastics studios. It’s easier for both the business and the consumer.
A business with a monthly subscription option benefits because clients pay automatically every month as opposed to paying one large amount upfront. Service providers like coaches, tutors, therapists, and instructors benefit because they can automatically bill clients instead of waiting for their payment after services have been rendered.
Benefits of Automated Subscription Payment Services
There are many benefits of automated subscription management payment services for customers and studio owners.
Predictable cash flow
One of the most challenging parts of being a business owner is managing cash flow. With a subscription service, your cash is predictable, allowing you to plan and make spending decisions more easily.
Convenient
Many customers like automated subscription payment options because it saves them time. They don’t worry about making sure their bill is paid because it’s automatic. If your clients are busy people who value convenience, this is a must-have to stay competitive. It’s one less thing for them (and you) to remember.
Security
Many small businesses store credit card information in physical folders or spreadsheets when they first get started. Unfortunately, this involves a lot of risk for both the customer and the business owner. These files are easy to hack, and hackers prey on small business owners because they expect their security to be lacking. Automated payment services are ideal because they encrypt this type of information and make it more difficult for hackers to access.
Recurring billing is environmentally-friendly
As consumers focus more and more on the environment, being environmentally conscious is a differentiator in the market. In addition, leveraging an automated subscription payment service saves paper and energy because you don’t have to print and mail the bill.
You save time and money with subscription management
Some small business owners use a spreadsheet and manually process transactions. While this can work for small numbers of transactions, it is not efficient as a business starts to grow. One of the big benefits of an automated subscription payment service is that it saves an incredible amount of time and money. For example, activities that may have taken hours can become instant, and costs are reduced. Your employee is now free to help you grow the business.
Features Of a Recurring and Subscription Payment System
From recurring payments to online payments, you’ll want to look out for the following features for your recurring payment services:
- Accept online payments
- Reasonable monthly fees
- Easy entry of credit and debit cards
- Invoice payments options to collect payments
- Fixed recurring payments
- The ability to retry failed payments
- The ability to notify customers of missed payments
- Payment processing services
Get Ready to Grow Your Dance Studio’s Recurring Revenue
By leveraging automation tools, you save time, money AND energy by creating systems that will be the foundation of a thriving and growing business. Plus, the sooner you get started, the easier it will be, and you can avoid the growing pains associated with switching systems later down the road.
