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Old 12-30-2011, 10:13 AM   #1 (permalink)
 
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EFT Runaways

Just curious what most owners do when you have clients that bail out on EFT Contracts. Client signs up, gets valued rate, tans 2 months, then either puts a block on your charges or cancels card, etc. Is it worth chasing after the remaining balance>? And if so how do you approach it? Im all about getting the balance that was agreed upon for the services requested. Just FYI, not a big fan on ppl that bail
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Old 12-30-2011, 10:58 AM   #2 (permalink)
 
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Re: EFT Runaways

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Originally Posted by FloridaTan22 View Post
Just curious what most owners do when you have clients that bail out on EFT Contracts. Client signs up, gets valued rate, tans 2 months, then either puts a block on your charges or cancels card, etc. Is it worth chasing after the remaining balance>? And if so how do you approach it? Im all about getting the balance that was agreed upon for the services requested. Just FYI, not a big fan on ppl that bail
You might want to offer EFT memberships without a contract. This will sell more memberships and cut down on cancellations. Maybe say cancel anytime after 30 days with a 30 day written notice. Give them the cancellation form when they sign up.
When they want to cancel, have alternative opportunities that will keep them aboard. One time freeze charge, or small monthly freeze charge that is given back in store credit when they reactivate. Build good will and you will see fewer cancellations. There are other things you can do if you have the right kind of price structure.
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Old 12-30-2011, 12:25 PM   #3 (permalink)
 
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Re: EFT Runaways

You can send them to collections or take them to small claims.

I would send them collection letters. Some would pay, some would just go MIA, never to be heard from again. I did have a couple randomly show up wanting to do EFT again 2 years after they bailed on their original contract. I told them I would wave the back fees but could not offer them eft, only the month to month option. They would get pissy and leave.
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Old 07-15-2012, 11:35 PM   #4 (permalink)
 
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Re: EFT Runaways

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Originally Posted by delany View Post
You can send them to collections or take them to small claims.

I would send them collection letters. Some would pay, some would just go MIA, never to be heard from again. I did have a couple randomly show up wanting to do EFT again 2 years after they bailed on their original contract. I told them I would wave the back fees but could not offer them eft, only the month to month option. They would get pissy and leave.

I would do the exact same thing. The small amount of customers that are this irresponsible and try to go MIA on a their EFT you don't need as customers IMO. They'll just go to the next salon and do the same thing.
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Old 11-04-2012, 01:10 PM   #5 (permalink)
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Re: EFT Runaways

Anyone have a collection form letter? Any other ideas for runaway efts? The reason I give a deal for "contract tanners" is that they give the commitment to tanning with me for 3 months. Monthly tanners (no contract) can run from salon to salon grabbing specials whenever they like. Also, the trend seems to be that they tan the most during the first month, hence charging more for a month versus signing up for 3 months (my contract stipulation)
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Old 11-04-2012, 01:15 PM   #6 (permalink)
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Re: EFT Runaways

Also, most of my runaways tanned for the first month and then disappeared. Some even tanned once and disappeared. So, I'm really not losing too much money in retrospect, but how many of you signed up for a gym and only went a couple times during you contract? Same concept. I plan on offering the ones that only can for a month the opportunity to come pay the difference between eft and prepay monthly which is 20 bucks to settle their account before collection letters are sent. If they tanned once and disappeared I'm think I might offer them a chance to resign the commitment and start the 3 months over. So that way I'm not a complete bad guy. Let you know how it goes.
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Old 11-06-2012, 11:42 AM   #7 (permalink)
 
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Re: EFT Runaways

I recently hired a collection agency to collect on some $30.000 in bailed EFT`s!!Needless to say, the ones that care about their credit are paying the outstanding balances...the ones that dont give a *%$# will not pay it.....
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Old 11-06-2012, 05:02 PM   #8 (permalink)
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Re: EFT Runaways

Only had 5 runaways. One has 2 disconnected numbers. One should be in to pay his $20 (he tanned about six times in one month). So he is paying the difference between a membership (EFT) price and a monthly. Ran another's card for $20.00 for the same reason. Suprisingly went through. One just skipped a month (she tried to cancel over the phone). Ran hers for the $29.99. So recouped a bit. We only have about 25 EFTs.
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Old 11-14-2012, 08:04 PM   #9 (permalink)
 
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Re: EFT Runaways

A&S Collections, free to sign up, online entry, they keep half if they collect, we offer what they paid to the collection agency back in tanning! (builds/saves relationships)
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Old 11-22-2012, 06:01 PM   #10 (permalink)
 
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Re: EFT Runaways

We run away from the runaways. Not worth chasing them. We write it off after the second month, charge a graduated joiner fee for rejoiner members who ran in the past. We are in a small market and cannot afford a negative reputation. Works for us.
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