Implementing a club subscription model for your operation can be a great way to add an additional revenue stream while providing options to improve customer service. Consider these variables to determine if a club model is right for you.
Most people think of Flying Clubs as a traditional shared ownership model for affordable access to aircraft rental. Monthly dues typically cover overhead expenses and rental rates pay for operating costs. However, for-profit flight schools can also benefit from this subscription revenue.
How could this work? Let’s say you charge a $100 initiation fee and $30 monthly dues. Benefits could include:
- $10/hr discount on rental rates
- Discounts on retail supplies
- Free headset loaners
- Exclusive access to events
- Free auditing of ground school classes
- Use your imagination!
You could actually discount your rates or alternatively, raise your rates for non-club members. In this way you are generating the same amount of revenue with no additional costs. Clients feel they are getting a deal which improves your customer experience and you can even waive the initiation fee for select groups such as military veterans, students of affiliate colleges, employees of X airline. It doesn’t cost you a thing and who doesn’t like feeling special and appreciated?
Now consider the additional revenue stream. If 100 clients become club members you gain an additional $3000/mth revenue with zero expense. Not too shabby! 200 clients enrolled and you have significant recurring revenue.
This feature is available to all NeedleNine schools. Simply enable the club feature and enter club rates for any items you charge clients. Clients can self-enroll through their profile at any time and NeedleNine automatically charges them the correct amount so no manual adjustments are necessary.
Flight schools have slim margins so consider this option to improve profitability while providing an excellent customer experience.
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