Now is an excellent time to consider adding new ways for your customers to purchase your services. With so many pet businesses embracing a ‘new normal’ as they re-open from covid-19 lockdowns and learn how to handle the new day to day challenges of running a business while following health and safety guidelines, it’s very important to utilize all the tools at your disposal. ProPet offers a number of really unique ways to save or make money while still adhering to social distancing and health and safety guidelines. But there is one way in particular that is very effective at keeping you cash flow positive during times of uncertainty, selling pre-paid packages.
What Are Pre-Paid Packages?
A pre-paid package is a collection of passes that are purchased as one item and redeemed from the customer’s account whenever they book the applicable service.
For example if you offer a pre-paid package that consists of 5 full grooms, each time a customer (who has purchased the pre-paid package) books a full groom ProPet will automatically redeem one full groom from the customers pass balance, until their balance is depleted or until the passes expire.
A pre-paid package is easily purchased through the customer portal or in the admin portal on the customer’s behalf. Each time a customer goes to book an applicable service they will easily see how many passes they have currently and how many passes they will have remaining after the transaction is complete. Also if a customer is running low on passes, they can easily top off their pass balance by re-purchasing another set of pre-paid packages for current and future transactions.
Why are Pre-Paid Packages Useful?
Pre-paid packages are an excellent way to secure repeat business. If you have a customer who purchases your services in advance, and in bulk quantity, they are much more likely to return to your business and eventually become a long term customer. By utilizing pre-paid packages you are creating an avenue for customers to make a commitment to your business that will bring them back time and time again.
Customers also love pre-paid packages because they are typically offered at a discounted price, for example 5 grooming passes for the price of 4. Pricing your passes strategically is a great way to incentivize a purchase while making you and your customer happy. You’re happy because you upsold and your customer is happy because they’re getting a deal. It’s a win-win.
Pre-Paid Packages Improve Cash Flow
Pre-Paid Packages are an excellent way to boost your business’ cash flow, especially in the event that your business has to temporarily suspend operations due to covid-19. The beauty of the pre-paid package is that it can be purchased far in advance of when it is actually used. So, if you need to temporarily close your business and you’re no longer actively providing a service, customers can still buy pre-paid packages as a sign of good faith and redeem your services later on. Giving you an influx of money now, while allowing your customers to bank credit for a future date.
Plus, once you re-open, if you actively encourage new or returning customers to purchase your services in bulk using pre-paid packages you can give yourself a nice cash boost to help compensate for any lost revenue during the period you were closed. This can really help get the ball rolling after a lockdown, you can turn small transactions into big transaction while still offering the same service and giving your customer a good deal.
You also don’t need to worry about people purchasing pre-paid packages and never using them because you can apply expiration dates to your pre-paid package in order to incentivize your customers to redeem their purchase within a given time period.
If you’re in the need of a quick cash injection during tough times, pre-paid packages are a great tool to utilize. But their utility is something that can be used in good times and bad, and once you add them to your pricing structure it won’t take long for you to see how useful they can be in the long run.