Golf membership direct debit

[fourstardan]

Hi,

My renewals are up in a month and I usually do it by direct debit.

The club charge more for doing this based on paying upfront.

Does anyone else do this and know why as I'm going to challenge it with the club as I don't seem to understand why.

Thanks

[SS2.]

Increased admin costs, or they've factored the DD'd subs out to a third party who charge for doing so, or just because they choose to.

Only your club will be able to confirm.

[greygoose]

Do you pay for the whole year in one go? Most places charge more if spreading the payments monthly rather than annually, sounds odd if they are doing the reverse.

[pmanson]

Instead of charging monthly direct debit customers more are they not just giving a discount to those who pay a year up front?

Less admin for the them and better cash flow...

[kiethton]

My golf club’s DD option is about 7% more expensive annualised over the year. I pay in a lump sum...

[Joe5y]

fourstardan said:

Does anyone else do this and know why as I'm going to challenge it with the club as I don't seem to understand why.

Thanks

When you challenge your Golf Club could you also challenge the DVLA on it's tax payments too. Let us know how you get on.

[fourstardan]

kiethton said:

My golf club’s DD option is about 7% more expensive annualised over the year. I pay in a lump sum...

This is about what mine is.

How hard is it to setup a direct debit????

[fourstardan]

Joe5y said:

When you challenge your Golf Club could you also challenge the DVLA on it's tax payments too. Let us know how you get on.

Don't worry I won't ?

[kiethton]

Guess it’s all to do with cashflow as well - Having it up front Versus potential for you to walk away from the membership/DD in November. The external administrator (if not done in house) will likely take a few % also.

[GT03ROB]

Most things that you pay up front are cheaper than if you pay in stages. Not sure what the problem is as its not unusual..

[red_slr]

Business banks charge for everything, so setting up a DD as a business will cost you as the business has to cover the cost.

[jamei303]

They're effectively loaning you the total amount and you repay them over the course of a year. There is no reason they should offer this service for free.

[38911]

The price of membership is £x per year. If you want to spread the cost for your own convenience/affordability, it seems perfectly reasonable for them to charge a fee to do so.

Monthly Payments are not as good for their cashflow
Monthly Payments mean they can't earn as much interest on the money
Monthly Payments creates additional administration work for them
Monthly Payments cost them more in bank transaction fees
Monthly Payments carry the risk that you'll cancel your DD mid year

Surely the obvious question is why wouldn't they charge you a premium for you to have the convenience of monthly payments?

Or to put it another way : Why should those who pay 'up front' subsidise the cost of you spreading the payments?

Edited by 38911 on Tuesday 28th July 17:52

[BrabusMog]

As stated, cash flow etc, better for them to have the money in the bank. Our club isn't doing the eat out help out thing either as they've stated they want the revenue. I have no idea how the repayment from the govt works and we have to load up an account to eat / drink in the bar and restaurant but this is what we have been told and no reason to dispute it. Golf clubs have had a tough time of it, if you can afford to pay up front I'd do it.

[Ham_and_Jam]

fourstardan said:

Hi,

My renewals are up in a month and I usually do it by direct debit.

The club charge more for doing this based on paying upfront.

Does anyone else do this and know why as I'm going to challenge it with the club as I don't seem to understand why.

Thanks

TBH they are not forcing you one way or another, there giving you a choice. Pick the one that’s cheapest or suits your circumstances better.

It’s no different to how most insurance premiums are paid these days.

[mx stu]

It's interesting because the message coming out of my club is actively pushing people towards paying 10 equal DD's (same overall price as annual membership)

Not sure if their thought process is that people will be less worried about £100 a month leaving their bank rather than £1k in one hit, so less inclined to cancel.

[journeymanpro]

Do they use a third party credit provider? Our local club uses Fairway Credit.

[rallye101]

I pay quarterly for an extra £50....only reason is that £2400 at Xmas is a bit punchy

[fourstardan]

I am at a private club and the most expensive in the area so it's not unexpected to have this sort of detriment when a lot of members will be (Historically) cash rich.

I'm not quite sure how long this trend will last for.

[Saweep]

journeymanpro said:

Do they use a third party credit provider? Our local club uses Fairway Credit.

They'll have to. Small businesses can't just set up DDs.

There are all sorts of regulations and hoops to jump through.

Each provider's fees are different but they are definitely a few %.

Add in the risk of chargebacks etc and there you go.


Paying up front for a discount is not exactly a revolutionary unheard of thing though, is it?