Quote:
Originally Posted by TGTKPinkWhalepq
I told him that we needed to ensure collections not only from current members but from guys that leave with outstanding balances, and he just emphasized that we can't afford the short-term losses of Omega's 5% collection fee they quoted and we should just write off those losses. He's got more knowledge on the topic and better public speaking skills than me so my plan is to get some older members, like our former Pres and VP Finance to present the case in Chapter for using the service.
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Your econ major sounds like a complete goon. What's your current collection rate? OmegaFi claims that most chapters using their service have an average collection rate of 96% or better. At least, that's what my last Term Review, a document that they generate for us at the end of each semester which gives us an overall financial analysis of how our chapter did during the semester, stated. If your current collection rate is anything less than 91%, then, if your chapter performs on average with OmegaFi, then the service will be paying for itself. If your current collection rate is only 85%, and OmegaFi could get you 96%....well after taking out that 5% fee, what you know you would have a whole 6% more money than what you were pulling in on your own. You stated earlier that your yearly dues are $900 right? So currently $450 per semester? So that extra 6% you'd be pulling in is like pulling in an extra $27 per member. What else can you do with $27 per member? More programming? more parties? More chapter expenses that you haven't been able to afford before?
The service pays for itself. Not to mention the features. Online payments (okay, yeah, you could use google checkout or paypal, but guess what? you pay fees to use those too). Paper statements mailed home, and email notifications sent out. Not just a "hey dude, you owe $$XXX. Pay your bill." Plus, if parents are paying the bill rather than the student, they like the professional notification of a statement. And if the parent has questions about the bill, they call call OmegaFi, rather that trying to hunt down the treasurer of the chapter, who is a college student, who they "probably" don't have must trust in anyway....And what treasurer wants to talk to Brother Joe's parents about money anyway? I have no desire to talk to my sisters parent's: they are big girls, they can take care of themselves. If mom and dad pay their bill, that's between them. I just care that dues get paid...I don't care how.
So Econ Goon thinks 5% is not worth the features and benefits, huh? If dues at $900 per year, then 5% is $22.50 per semester..... So increase dues to $472.50 per semester to offset the cost. That's less than $6 a month if you bill in 4 monthly installments. If your members can't afford a $6 increase per month in order to benefit the whole chapter's financial situation which would also increase their quality of membership, then they have serious issues.
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