Here at Regpack, we are committed to helping you weather the current financial challenges you are facing.
On the topic of refunds, the question we’ve been asked the most is whether giving refunds is the best option right now, and if not, what to do.
Understandably, you build into the cost of your offerings the knowledge that you will have some cancellations that require a refund. However none of us could predict the situation of a total loss of program revenue.
The first question is – what is your refund and cancellation policy, if you have one? If you don’t have one, now is a great time to work one up to include going forward.
Purchase Protection is a great compliment to any existing or newly created cancellation policy, as it helps to cover your own financial loss if someone cancels due to illness, COVID-19 included. A strong refund and cancellation policy, regardless of reason, will help you have clear cut rules when it comes to approving or denying refunds going forward.
Policies aside, COVID-19 has drastically changed circumstances, and it’s understandable that keeping your customers happy is top priority, outside of any existing policies you may have. But mass refunds can put you out of business.
What is the middle ground between customer service and continued financial issues for your business?
One option is to offer credits for future events or programs you offer. Budget wise, this is income for a later time, and doesn’t solve the immediate need for revenue now. It does help your short term cash flow. This might help lower refund requests and give you the cash flow needed to process a smaller number of refund requests.
Another option that helps cover your immediate costs include small business loans, grants, and private donations.
Lastly, the most challenging but the most promising financially: look for other sources of revenue!
This will force you to think outside the box, which I’m sure you are already doing, but here are a few ideas that some clients are already putting into action:
- Sell merchandise you already have inventory for or make new inventory to sell
- Run a campaign to raise money for your business to share with loyal customers
- Sell gift cards for future services
- Lease out your physical space, if you have one, for other programs that can operate
- Create an online version of your program – with a lower price point – to keep engagement with your clients but at a cost that is easy to market
You can leverage your Regpack account to create any system to generate additional revenue. Our anonymous systems allow you to makes sales without requiring a lengthy sign-up or account creation process, so you can be up and running quickly.
If you have any questions about how best to do this – please reach out to our Support team, we’re here to help! Check out our webinar on this topic here.