Setting Up Cancellation and Enrollment Fees for Subscriptions

In this guide, we will walk through the process of setting up cancellation and enrollment fees for subscriptions. These fees are crucial for managing revenue and customer commitment in your studio.

Understanding Enrollment and Cancellation Fees

Enrollment Fee: This is a one-time charge collected when a customer first signs up. It helps cover administrative costs and captures upfront value for onboarding a new member.

Cancellation Fee: This fee is designed to encourage members to stay committed to their plan for a minimum number of cycles, providing a buffer for your business if someone decides to leave early.

Steps to Set Up Cancellation Fees

1. Define the minimum cycles for a subscription by toggling on and updating the minimum cycles setting.

2. Enable cancellation fees and update the amount to be charged. For example, if a customer cancels before completing three cycles, they will be charged a $500 cancellation fee.

3. Note that the cancellation fee does not apply if a subscription is cancelled after the minimum cycles.

Steps to Set Up Enrollment Fees

1. Enable the enrollment fee for the subscription and set the amount to be charged.

2. Once enabled, customers will be charged this fee in addition to the initial subscription charge.

3. Save your settings.

4. To control whether the enrollment fee applies to new or existing customers, go to general settings.

5. Under payments, scroll down to enrollment fee settings.

6. Enable the fee for new customers if it should apply to those who have never purchased the subscription before.

7. Enable the fee for existing customers if it should apply when they purchase a subscription again.

8. Set a time span to define how long after their last purchase the enrollment fee should apply for a new subscription purchase. For example, set it to 12 months if the fee should apply only if a customer purchases a subscription 12 months after their last purchase.

Based on your business requirements, you can choose to enable either one or both of these options.