Do you still take cash payments for your club’s classes? If so, you’re not on your own. Whether it be a fiver here and there, or 100% of the club’s fees being taken in cash; lots of clubs are still taking it. But what you may be surprised to find out, is that although lots of clubs are still using cash, a lot of those clubs are actively trying to move away from it.
Some of our clubs can take over £800 per night in just class fees. Never mind other fees for uniform, competitions etc.
What would you do if this amount of money (or more) got stolen? It may be during training, or you may have a break-in at your HQ; it happens. Take a look at the follow-on questions below to assess how well your club would continue to operate if its takings got stolen.
• How would you pay your rent?
Many clubs rent a space/building for their classes. They’ll either rent an area such as a hall in a leisure centre for a few hours a week; or, depending on the club’s size, rent a whole premises full time. No matter whether clubs run for profit or not-for-profit, they will normally be subject to a monthly rental payment. What would happen if you couldn’t pay that? You may like to think that your landlord would grant some leniency, but remember that they have bills to pay too.
• How would you pay your bills?
Even if you’re lucky and your landlord grants you some time to come up with the missing rent, there are other things to think about. You may pay other bills such as gas, electric, insurance and so on. Unfortunately, as these businesses are normally much larger, there’s little chance in leniency or a grace period. Could you continue to run your classes should your gas/electric be switched off?
• How would you pay your coaches?
We’re aware that many clubs run non-profit and rely solely on coaches who volunteer. However, we work with some clubs who manage to pay their coaches and even some who coach as a career. Could you afford to pay your coaches if a months’ worth of fees disappeared? What if they were relying on being paid, to pay their own bills? There’s a lot to think about.
• How would your reputation suffer?
If your cash tin is stolen, a lot of people are impacted. Although it may not be your fault, it’s not just your club that’s being impacted. It’s your members/their parents’ money too. Are they going to want to keep handing their hard-earned cash over, for fear of it being stolen again? Do you think you’d lose members?
Also, if coaches aren’t being paid, will this set them on the hunt for a new club to coach for? And will your landlord be wary of working with a tenant whose rental payment relies on cash payments, which seem prone to being stolen?
• How would you re-pay members?
If it’s membership money that’s been stolen, you can obviously just allow members to attend the class they paid for. But if they handed over cash for uniforms/trips/competition entry, who will be responsible for ensuring those items are still paid for?
• How long would it take your club to get back on its feet with missed payments?
If you’re playing catch up with bills/re-payments, how long is it going to be before you’re back to normal? And at what cost? Will you have to sacrifice planned events at the cost of your members in order to so?
Aside from theft, there are lots of other reasons that you may not want to take cash. For example, a few of Coacha’s own team recently asked a bulk of their students what they disliked about previously paying in cash.
The main things that came to light were that they had to:
a) Remember to get cash out prior to the class
b) Make time to stop and get the cash out after school/work/other activities
c) They had to do this every week/before every session they attended
What is an alternative to taking cash payments?
Automating payments is usually a huge reason clubs get on board with systems like Coacha. Rather than members having to bring cash, a payment is taken every week/month/year automatically. Plus, you’ll get regularly updated on the status of payments and the system will even chase failed payments for you.
You can still take one-off payments for competition fees/uniform etc. and if the odd member does turn up with cash, that can be recorded too.
If reading this article has worried you, or you’d like to see how changing the way your club takes payment could benefit you, be sure to get in touch with Coacha today.
“We spent a lot of our admin time last season chasing late payments and processing cash with no names attached or direct debits with random surnames/references, trying to figure out which athlete they matched with, etc. As soon as we heard that there was a system that would simplify taking payments and help us to track which athletes have paid what, we were on it. It's definitely paid off. With Coacha, I reckon we spend about a quarter of the amount of payment admin time we did last year. It’s a life saver.”
- Kat Knowles - Programme Director of Momentum Cheer