Hi guys, welcome to Quoox University.
So in this video, I’m going to try and visualise for you scenarios that come up very often with our customers for their memberships, payments, and credits, and issues that come up around grace credits, members not having credits to use even though they’ve paid for their month, and essentially the different options that you can use within the Quoox system to set up memberships and how that would look from a payments and credits perspective.
So let’s start with:
Scenario One.
We’ve got a membership start date as immediate. We’ve got the payments coming out monthly, and then recurring on the anniversary date of setup. And then the payment amount is 100 pounds per calendar month.
We then have added our credit pack to the membership, which provides monthly credits, they’ve not been prorated, and they’re on our 12 small group PT per calendar month credit plan or credit pack. And it’s valid for 31 days.
So let’s have a look, let’s say that today was the six of January. They’ve made their first 100 pound payment because the membership started immediately, which means that they’ve got their first 12 credits for the full month because the payment has come out and the credits have come out at the same time.
Then what you’ll see, is that there have been 12 grace credits allocated for the next 31 days. So essentially what that means is because you know you’re getting a repeated or recurring monthly payment, we give them the grace credits to be able to book up to a month in advance.
This will happen every month, so when they’ve made their next payment, the grace credits will transition into their paid for credits, and then they will have their next set of grace credits to use from the 6th of March onwards for bookings further in advance of your schedule. So hopefully that’s helped you visualise this scenario.
So let’s recap; it’s an immediate start date for the membership, meaning that you take the payment or the first payment of a 100 pounds in this case straight away, then the credit pack that you’ve associated is assigned monthly. It’s not been prorated, so they get their 12 credits immediately, and those credits are valid for 31 days. And with that they get a following 31 days worth of 12 credits as grace credits. Hope this makes sense. We’re gonna move on to scenario two.
Scenario Two
Is where we have a delayed start on the membership. So let’s say for example it’s the 6th of January today, but I want to start my membership on the 10th because that’s my pay day.
The payments then will be monthly on the anniversary of the start date of the membership. So in this scenario it’s going to be the 10th of January.
The credits have also been applied monthly, not prorated, again, we’re on the 12 small group PT per calendar month credit pack, and they’re valid for 31 days. So, the credits will start on the start date of the membership, which is the 10th.
The first payment will come out on the start date of the membership, which is the 10th of January.
Similar to scenario one, now that we’re at the start date, the payment comes out and the monthly credits are assigned to that membership. So, I as a member will have my 12 small group PT credits valid for the 31 days, and then I’ll have my grace credits for the next 31 days, starting from the delayed start date.
As I then move through on my anniversary date to the 10th of February, my next 100 pounds payment comes out, and then my grace credits transition into my new 12 credits. I then have my 12 new grace credits to make future bookings for the following 31 days.
And my final payment for March will come out or my continuing on payment for March will come out on the 10th of March, and again, those grace credits transition into my credit pack assigned to my membership.
So essentially it works in exactly the same way as scenario one, but what you’ve done is delayed the start date for the member. So they may want to sign up on the 6th but nothing comes out and nothing gets assigned to their membership until the 10th. So they’re registered, they’re ready to go, but they can’t do anything for four days, okay? That’s scenario two.
Let’s look at:
Scenario Three.
The membership start is immediate. The payments are monthly, and again on the anniversary of signup, and it’s 100 pounds a month.
Now, the credits are provided 4-weekly. They’ve not been prorated. And as a member, I get three small group personal training credits per week, and they’re valid for 28 days.
Now this is an ideal scenario or a common scenario if you will, for clients or facilities that we have that have members that they distribute their credits to on a weekly basis. The reason we suggest that you then provide them on a 4-weekly basis for a credit pack is because then you can distribute them properly and then you’ll have overlap of grace credits and you’ll see that through this scenario.
So, today is my start date, it’s starting immediately, January 6th I’m paying 100 pounds as a member and I’m getting my 12 credits valid for 28 days.
You’ll see here that because the payment is on the anniversary, that means that it’s over 28 days. So my payments are coming out on the 6th of each month, but my credits are being assigned every 28 days. So to a member, if I was the member, it doesn’t make any difference to me, my payment’s coming out, I get my credits.
It doesn’t matter that they end any earlier because I have my grace credits to roll me over for the further 28 days. So after 28 days, and once my next payment’s been taken, my grace credits become my 12 credits that I’ve paid for, and then I get another set of grace credits to be able to book up to 28 days or four weeks in advance.
So what you’re seeing here is that there’s a consistent overlap between the payment and the credits being assigned. So even though the payment date is on an anniversary and the credits are 4-weekly, there is never a gap between the member having credits available to book, that’s scenario three.
Let me run you through:
Scenario Four.
Again, monthly membership starting immediately, and it’s a monthly membership where the payment comes out on the first of each month, I’m paying 100 pounds per month. The credits are distributed 4-weekly, they’re not prorated, and the member or me as the member, gets three small group personal training sessions per week, and they are valid for 28 days.
So, today is the 6th of January, I am starting my membership immediately, but I want my future payments to come out on the first of each month or as a facility that is your payment date, but you’ve had someone start just afterwards.
So what the system will allow you to do is pro rata the payment amount that will be due today to start the membership.
So because they’ve started on the 6th up until the 31st, that would be 80 pounds prorated amount. Because they’ve made that payment and because the credits are starting immediately, they get their 12 credits, they also get their 12 grace credits that they can use up to 28 days in advance.
My next payment that comes out on the first of February, because that’s the date that we’ve decided we want to make our payments on a monthly basis, will be the full amount of the membership which is 100 pounds per month.
You’ll see the overlap of the credits that I’ve already paid for, and then the 12 credits become my credit pack credits, and I get another 12 grace credits as a member to use for up to 28 days in advance.
Overlap of payment, again on the first of March, the full amount will come out, we’ve done the prorated amount on the first month after that every month rolling it will be the full amount. And again, the grace credits will continue to cover you for the further 28 days as a member so you can book and you’re getting your credits every four weeks.
So in this scenario there’s no gap between the prorated payment amount and the credits or the full payment amount and the credits that have been distributed as a member, you’re seeing your credits being distributed evenly, and you can always book up to four weeks in advance.
Let’s look at the:
Fifth Scenario.
We have an immediate membership start date, it’s monthly and on the first of each month, the payment will be taken and it’s 100 pounds per calendar month. The credits are distributed 4-weekly. They are prorated and they are getting three credits for small group personal training per week, and they are valid for 28 days.
So let’s see how this pans out. We join today, it starts immediately on the 6th of January, we get the prorated amount for the payment, and we get the prorated number of credits out of that credit pack that we’ve assigned.
So we’ve started immediately, the payments are then coming out from the first of February onwards. So what we can see here is that the payment amount to start with is 80 pounds prorated, and the member gets 10 credits prorated.
But what you’ll see is that they also are receiving their 12 grace credits. So the total amount of credits that they’ll get on a four weekly basis, they’re still getting that as their grace credits. So as a member, they can still book 28 days in advance.
From the first of February, the full amount of the payment will come out, so 100 pounds for this membership, and they will then get assigned their 12 credits, so their full credit pack allowance, and then they will get their 12 grace credits to book up to 28 days in advance.
Their following payment will come out on the first, and the credits will continue to roll as you’ve seen throughout the video that they get their 12 credits at the start of each month, and then an additional 12 grace credits to be able to book.
Now we’re gonna look at the problematic Scenario.
So we’ve run through five scenarios here, where no matter the start date, but then payment date or payment schedule, and the credits being assigned, you will see that there has been an overlap of both, so you’re never out of credits as a member.
So there should be no issues with booking for future sessions or consultations, whatever’s included in that credit pack.
Let’s go through:
Scenario Six.
So the membership start date is immediate. The payments are gonna be monthly on the anniversary of the first date or the day you sign up, and it’s going to be 100 pounds per month.
The credits are now going to be assigned monthly. They’re not prorated. They get 12 credits per calendar month for small group personal training, and they are valid until the end of the month.
So what will happen here, is we make our first payment of 100 pounds and we get our credit pack of 12 credits for the month, but they are only valid until the end of the month, which means they end on the 31st of January.
But my payment anniversary is the day that I booked, is the day that I joined as a member, which is the 6th, that leaves me as a member with six days of no credits.
Because of that, the grace credits will only start from the anniversary date, which is the 6th of February in this scenario. Then we have the same situation in February, so my new credits have been assigned on the 6th of February, my payment has been taken, but the end of the month is the 28th. I now have even a larger gap between the 28th and the 6th of March. So I, as a member won’t be able to book, because I’ve got no credits available, and I’ve got no grace credits available, because the grace credits are assigned on the anniversary date of your monthly payment.
When I then make my payment on the 6th of March, my credits are then reassigned, but you’ll see as you go throughout the year, that by putting the end date of the validity of the credits at the end of the month, every month changes, there’s different numbers of days in every month.
So as a member, you’ll find that you can’t book on classes in advance because you don’t have credits available. And as a facility owner this will cause lots of issues for you, you’ll get lots of tickets or requests from your members as to why they can’t book, and then it becomes a problem in the system.
So I’d highly recommend, if you need to, re-watching the video or really thinking about what your payments scenarios are with your members, and ensuring that you assign your credit packs to your memberships in such a way that your members will always have their grace credits available to book in advance within your schedule.
If you have your credits available and valid for 28 days, it’s recommended that your schedule aligns with 28 days in advance bookings. If it’s 31 days, have 31 days worth of sessions available to pre-book, otherwise, again, it becomes complicated and confusing if a member can’t book because they’re only valid for 28 days, but you’ve got 31 days of sessions, they won’t be able to book for those last three days.
I appreciate, I’ve spoken through a lot of different scenarios here, we will chapter the video so you can go through and see which ones are relevant to you. But please do take a look at this scenario six, and understand why there’s different settings and having the credit packs that are valid till the end of the month can cause issues for you and your members.
If you have any other questions or you feel you have a different scenario that you’d like to go through, please feel free to raise a support ticket, and me and the team will get in touch to help with that, and hopefully we can resolve any issues you may have around payments and payment schedules and credits, but fingers crossed this video’s eradicated those.
Otherwise, if you have no further questions, we’ll see on the next video.
