Guest Blogger – Amanda Bracks – Bracks Consulting - Women in Fitness

There are many businesses that are currently not taking pro rata. They go through all the hard work of negotiating with the prospect on a sale price, the sale is accepted and then the business discounts the customer’s fee when they are actually processing the payment details. The customer never asked for this to be removed and it’s a lost opportunity of income.

Pro rata is the amount of money owed before the next debit is due. Many sales people seem to waive the pro rata, thinking the payments can simply start on the next debit. It is very important to the business to retrieve all funds owed for the purchase including the amount owed before the first debit is due.

Working out the pro rata is simple. Just divide the debit amount to get a daily amount. Eg if your services are $89 a month x 12 months and divided by 365 days = $2.93 per day. If someone had 10 days before their debit is due, they owe $29.25 to get started (plus relevant joining / admin fees). If you sell 100 units per month and your pro rata is roughly $29.25 on average – that’s $35,100 extra income per year (money your staff are giving away now for no reason).

Ensure your staff are disciplined to collect the pro rata on every unit sold, either at point of sale or to be debited out of their account on their first debit.

Follow the 31 day Cash Flow Challenge here and on Facebook.

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1. 31 Day Cash Flow Challenge Day #15 – Get finance products working to your benefit
2. Payment Solution Tips for Swim Schools
3. 31 Day Cash Flow Challenge Day #5 – Carefully budget payments for essential expenses