Assessment of HLW New Membership Plan and Fees Structure

Assessment of HLW new membership plan and fees structure will improve its cash
receipts
Hawthorn leisure works offers tennis courts and other physical fitness
facilities to its members. It has around 2000 members. The management
plan and fee structure of HLW leads to poor cash receipts that are too
especially in winter months. For the purpose to solve this issue the club is
trying to introduce new management plan and fee structure can improve the
cash flows of the club and can make it profitable throughout the year.
Yes, HLW’s new membership plan and fee structure would certainly
improve its ability to plan its cash receipts. In the present situation there are
two sources of revenue available to HLW which are annual membership and
court fee. The annual membership is divided into three categories which are
individual, family and student. Under this management plan, the annual
member fee of individual was charged as $ 45, for students it was charged as
$ 30 and for family the fee was $ 100. Half of the members of the club is
family and other half is constitute of both students and individual. The
hourly court fee is $ 8 and $ 12 depending on the season and prime time –
non prime time.

 To increase the cash receipts the club is thinking to implement new plan in October in which
will eliminate per hour court fee and will charge only annual membership fee and will have
only two groups which will be individual and family with annual fee of $300 and $500
respectively. The annual fee would be collected in advance so that there is no chance of fraud
or cash deficit. Members under this new plan will be able to use the court according to their
wish at any time so it will provide ease to customers in order to use the court according to
their free time. As the club was facing low cash receipts therefore to attract new customers the
club would do special promotional campaign to attract new members and to retain existing
members as well.
CONTD.