General Question

longgone's avatar

Am I being unreasonable and/or irresponsible with this money issue?

Asked by longgone (19535points) November 19th, 2015

I’m a dog trainer. Up to now, people would simply pay me at the end of a lesson, and that was that.

Now, I’d like to make a change. I’m planning to offer a deal of ten lessons with set dates, in exchange for a little less money than what the same amount of individual sessions would have cost people. I’d be paid for just nine lessons, instead of ten.

I’m doing this because I’d like to encourage my clients to participate every week. That will ensure they get their money’s worth (and a little more), so I’m hoping it may do the trick. At the moment, some clients do not come in every week, which makes it difficult to plan lessons and impossible for me to rely on any set amount of money.

I’m hesitant to go ahead with this, for two reasons:

1) I’m unsure whether it is reasonable to expect people to pay the entire amount of money if they do miss lessons. I would be paying people back if they or their dogs are unable to participate, but right now, many clients decide not to come when it rains. Nor sure how to deal with that kind of thing.

2) Until the ten lessons are over, the money will not really be mine. I think I’d be okay with putting it away and only using it once it is – but money is not abundant, right now, and I try not to to this kind of thing at all. I don’t take out loans, for just this reason.

What do you think, jellies?

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16 Answers

chyna's avatar

I took one of my dogs to a class and I had to pay up front and sign a contract that if for any reason I couldn’t complete the class I could use it for a future class. The money was non-refundable.

Here2_4's avatar

^^ That would be my suggestion. ^^

Cupcake's avatar

You might allow your current clients (only) to opt-out of the new pricing and continue to pay by the current model.

Maybe use them to do a “focus group” and find out what they would be willing to pay, if they would be OK with losing out of money for missed sessions, etc.

I’d be wary of a policy that didn’t prevent you from losing money. If the money isn’t yours upfront, what is the benefit of collecting it that way?

dappled_leaves's avatar

I like @chyna‘s suggestion – it is more or less what I have with my current music teacher – but I would specify a “cancellations within 24 hours of the lesson will not be refunded/credited” policy. You can be as lenient as you want with it, but having it in writing will allow you to protect yourself from annoyingly flaky clients.

longgone's avatar

I like all that! Thank you. I’m definitely putting this in writing, and I think offering future classes instead of money is sensible, as well as having a 24-hour-policy. I’m going to allow my oldest clients to pay how they want to, too.

By saying that the money won’t be “mine”, I just mean I’ll be obligated to give refunds if, for some reason, I am unable to give the lessons I’ve “promised”. Let’s say I break my legs, for example.

jca's avatar

So you are referring to a “group lesson.”

longgone's avatar

^ Yes. Sorry, should have added that to the details!

janbb's avatar

You are the most responsible “youngster” I know! The idea of a discounted rate for a series of lessons paid upfront makes a lot of sense and there may be a way to structure it so that you can feel free to use the money. How about something like if they withdraw by the third lesson, they get a full refund but otherwise, they get two make-up lessons for missed lessons and the rest of the money they forfeit if they miss lessons? You can offer two extra make-up classes at the end of the series or they could get a discount on the next series.

canidmajor's avatar

Do the classes cover the material in a sequential fashion (i.e. “sit” one week, “down” the next, “stay” the following and so on? Here, it is usual to buy the course, and be responsible to show up. I like your idea of a discounted price for the pack of lessons, and if there’s a special circumstance that causes an absence, the client can make it up another time.
One place I was at allowed drop-ins for puppy classes, at a higher price per class.
We pay up front.
If you ask for a commitment for an entire course, you may get a more committed group.

Earthbound_Misfit's avatar

I agree with @chyna‘s suggestion. Lots of companies work in that way. You can buy 10 lessons for the price of nine, but if you don’t turn up, that’s your fault and you lose your money. Your time is allocated to give those lessons. If they don’t show, you still made the time in your diary to be there.

Offer the deal and see if people take it up. If they don’t they can keep paying lesson by lesson, but some people might like the idea of paying up front, at a slightly discounted rate. They might see it as a way of ensuring they will show up.

JLeslie's avatar

Do clients usually come for ten lessons? Is it very important they are done every week? Will the dog “forget” the lessons if they miss two weeks and start up again?

I ask, because for adults sometimes ten weeks consecutively is difficult. They might travel, have another commitment come up, and so many other possibilities.

When I lived in Boca Raton, FL the Ballet studio I went to sold a card, paid up front, and they punched it when you went to a class. It was great for adults, and we could come and go as we pleased. The cards were supposed to have expiration dates, but they rarely wrote them in. The 10 class card was $120, the 20 class card was $200, and to pay per lesson I think was $15 or $20, I don’t remember. I always bought the cards. I wonder if something like that might work for you? Not necessarily a card, but maybe something similar.

Maybe you can do as you are planning, and allow them to make-up up to two classes if they miss two. Have some flexibility rather than having to consider refunding money.

longgone's avatar

I’ve written up a letter, I’m hoping it covers everything:

I start out by saying I’ve decided to change the policy, but that people are free to opt out, for now. I explain that instead of paying for individual lessons, I’m offering classes of ten lessons.

[Insert price and all ten dates of specific class]

Then, I explain that this is beneficial to clients because

1) the hassle of weekly paying gets avoided
2) regular attendance will result in a lower fee, i.e., ten lessons for the price of nine

I go on to say that the new policy benefits me, because I have less paperwork to turn in (I have to document any money I receive, and less payments save me time).

Then, there’s a bit about reduced rates and payment options for multiple dogs of the same household, students, and those on Social Security.

Lastly, there’s a paragraph which explains that after signing up for a course, partial refunds will only be an option if the decision to drop out has been communicated by the set date for lesson three. Lessons missed after that point are non-refundable. If cancelled at least 24 hours before starting time, however, they may be traded in for up to two free make-up lessons or one free family ticket to one of our evening lectures.

I’m struggling with the last sentence. Right now, it sounds like I’m saying any missed lesson can be traded in for two make-up ones or a family ticket. Obviously, I don’t want that. Any ideas on how to word it more clearly? Any more input in general?

You have all been a huge help with this, thanks! I like the idea of a more committed group, though the lessons do not necessarily need to be covered sequentially. It does get frustrating for the regulars, though, to have to wait while I explain basic stuff which the “irregulars” have missed. And yes, the dogs definitely benefit from regular lessons. Mostly because some owners tend to get frustrated when things take a while – regular attendance guarantees a more rapid feeling of success, and some of our newer clients desperately need that!

@janbb Aw. Thanks, I needed to hear something like that today.

JLeslie's avatar

@longgone It sounds too complicated to me as you have it now. Maybe it’s just me, wait to see what others say.

jca's avatar

I wouldn’t go with @longgone‘s suggestion for what to write. In my opinion, it’s too complicated and people don’t want to read lots of stuff. Keep it simple, explain it’s group lessons, this is the price, you’re allowed to miss ____. Short and simple.

Here2_4's avatar

It is a bit wordy. I would stick to the basic details, just what the deal is, if no complications arise. Have the sentence, “In case of need for cancellations, see details below.” That way, they all know there is an out, but they don’t have to be bogged down with those details unless they have concerns about needing them.
Also, I would open with some sort of hook. It is not a trick. People are busy, easily distracted, and using an attention hook is doing them a favor. Use a different font, color, size to say something such as, “Opportunity to save money with a new deal.” Be upbeat. You are using law school training to make a simple note become a burdensome contract. Just be light and cheerful… you know, be yourself.
Do not use the word “bundle.” I immediately discard anything I receive with that word on it. It is wayyyyyy over used.

longgone's avatar

Don’t worry about the wording – the original (German) text is much more casual! I’ve made sure to not sound like a lawyer. @Here2_4 You’re right, I do that at times.

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