A continuity program can be an excellent way to eliminate your competition from your customers' minds. Just get their permission to keep sending your product or service on a prepaid or automatic charge basis
A continuity program works best when your product or service is used on a regular basis by your customer. The customer commits to continuously use the product or service either on a prepaid or "'til forbid" basis. ('Til forbid means the customer has agreed to have his bank account or charge account automatically charged on an ongoing basis until he or she notifies you to discontinue the procedure.)
Here are some examples of continuity programs:
- I have subscribed to my internet service on an ongoing basis. I have unlimited access for a flat monthly fee, which is charged automatically to my VISA card.
- A martial arts school could sell groups of lessons, such as a three-month term, a one-year term or "to Black Belt" on a prepaid basis or on a 'til forbid basis.
- A carpet cleaner could sell a "floor covering maintenance" program for three pre-scheduled visits per year at a reduced rate, on a prepaid or 'til forbid basis.
This type of business arrangement makes your business into a "money making machine." The fulfillment is pre-scheduled and so is the payment. Having this type of arrangement really improves the sale value of the business.
The customer benefits from the convenience of having his or her requirements for the product or service automatically handled without ongoing attention, including avoiding having to write periodic checks or approve each credit card charge.
The business owner also benefits because, since the customer's need or want for the product or service is "satisfied," the customer doesn't tend to "register" offers by other providers for the same or a similar product or service. In other words, since the customer's requirements in that area are satisfied, your competitors become "invisible" for that customer! Think about how you can adapt this concept to your business.
For new articles about how to improve your business, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight!