My personal feeling is that there are several different "right" ways to do this depending on what kind of space you're operating, your values and goals for the business, and the kinds of members you attract (and want to attract). I think the more you have a strict policy with a deposit and deduct the percentage of the deposit for any time they go over as a matter of policy, the more you set up clear expectations and also a business relationship. They're the client, you're the service provider. That can be a great relationship to set up and if it's a clear relationship, you'll have very little trouble with members being upset when you take their deposit if they don't give you proper notice: that's what they'll expect. Gyms/fitness clubs do it. Executive suites do it. I'd imagine We Work does it (maybe with a little more focus on customer service and willingness to give refund to unhappy customers). And I would guess for the most part, these businesses are more profitable than the average coworking space. I think with that approach, to the extent it fits with other approaches of your coworking space, you'll also probably attract a different kind of member: one who is more concerned with the quality of the amenities and that everything runs well than they are with the quality of the community and feeling a sense of identity with the space (not "more" in an objective sense, but "more" relative to coworking spaces that take the other approach). Again, that can be a fine thing and may be more likely to attract the corporate clients and people who are happy to pay a higher premium, and it may end up in higher average profits.
Our own space really tries to emphasize the community aspect and trying to improve the life of freelancers and other location independent workers. It fits my own values for why I started a coworking space, and I figure if I can't be profitable with that approach, I'd rather not be in this business (which I started in large part because I wanted to run a business that I felt did social good). This is NOT to criticize people who take a more "business first" approach. I feel pretty ambivalent about my approach, and I've had a hard time being profitable, probably in part because I haven't taken the former approach. That said, I think we're doing well, and I also think that's in large part because I have taken the latter approach. We do a lot like what Tony suggested: We don't take a deposit and we only ask for two weeks notice, but as long as people tell me before their new membership starts, I let them cancel without any penalty. We have expectations and we set them up clearly when they sign up, but generally I let people off completely as long as it's for time they're not going to work in the space either because they're upset about the service or because they had to move or work inside their company or they broke their leg (or they just disappear and stop paying, which I have a hard time enforcing because I didn't take a deposit, although this happens with maybe 1 out of 40 members in my experience). I'm sure I'm motivated to think this way, but it's my sense that this approach has created a lot more goodwill and return customers than the cost of the money I've lost. BUT I only think that's the case for my coworking space and the kinds of members I attract and want to attract. I attract mostly freelancers and micro-entrepreneurs and solo-remote workers (a lot of location-independent professionals / digital nomads, given my location in Prague, Czech Republic and the fact that we're an "English-language" coworking space). They tend to want a funkier, more personal, more community focused space. They also REALLY prize flexibility. I used to have a big incentive for committing for long-term (6 month or 1 year) memberships. I dropped that and started emphasizing month-by-month membership value and ease of starting and stopping. It might just be a chance correlation, but my membership number greatly improved after these changes, and there's no longer any sense of regret that people signed up for something that wouldn't have been their first choice and then were locked into a membership they no longer wanted. I also think I've lost very few paid membership months as a result (and in fact have gained because more people join as a result of the policy. My 5 cents. Will On Friday, March 11, 2016 at 7:13:55 PM UTC+1, Jerome wrote: > > We may or may not be in the real estate business, but is a hotel? > Regardless, members have to understand that we turned away inquiries for > their occupied desks. We at least need some time to re-occupy. > > A compromise to an exiting member would be to say, "up to 30 days or if we > fill that seat quicker" > > Jerome > www.BLANKSPACES.com <http://www.blankspaces.com/> > > On Mar 11, 2016, at 9:41 AM, Tony Bacigalupo <[email protected]> wrote: > > I was always pretty adamant about not taking money from people for > services they weren't going to use. If the only reason I can come up with > for keeping someone's money is that it's "policy" or because we want to > keep the money, that doesn't pass muster for me. > > I'd rather have their goodwill than their money. I've never been the > awesomest at making money, but I'd like to think there are better ways to > go about it. > > That being said, we focused on monthly individual memberships. I could see > that working differently if you're subleasing offices and such. But > coworking's not a real estate business, right? > > Plenty of members pay for services they don't use, and space owners profit > from that. Once in a rare while a member will complain; giving them their > money back is part of the cost of doing business. > > If a member's angry, I'd want to communicate with them, find out why > they're angry, and let them know they're heard. > > Maybe you can give them a partial refund and ask them to leave an honest > testimonial on Yelp/Google Maps/etc so they can help you better attract > their replacements. > > Tony > *---* > *New Work Cities <http://nwc.co/consulting> - Helping people build better > coworking cultures.* > *Open Coworking <http://opencoworking.org/> - Championing the global > coworking movement.* > > <web.png> <http://tonybacigalupo.com/><tw.png> > <http://twitter.com/tonybgoode><fb.png> > <http://facebook.com/tonybacigalupo><li.png> > <http://linkedin.com/in/tonybacigalupo> > > > On Friday, March 11, 2016, Glen Ferguson <[email protected]> > wrote: > >> We adopted the same policy as Jerome, and for the same reasons you cited. >> We explain that while we want 30 days notice, we understand that work today >> often doesn't function that way. New contracts, new assignment by >> employers; they often don't give the member themselves much notice. >> >> W also use the comparison to an apartment lease that collects first and >> last month's rent up front. (Yes, I know there are legal reasons to avoid >> terms like "lease", "deposit", and "rent". It's not a perfect analogy, but >> it helps). They make the mental connection and we've had zero complaints in >> over 2 years of doing it this way. >> >> *Glen Ferguson* Tummler, Cowork Frederick >> Phone: 301-732-5165 >> Email: [email protected] >> Website: http://coworkfrederick.com >> <http://link.wisestamp.com/wf/click?upn=hOBFNJQde5xdQoVn4ogqwuppxK3mfNmObodKMFVhwKI-3D_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKp-2B9bkPsOy4Afgxs39H7nHyQ02yPjXx-2FhH2qm2-2FBkLwMHZm-2FJ0sEqm2EW6JZcC-2FFZTN7mXDKY-2Fka-2BJ8AGuUhoylLBVJfP83xaxIbMIky9SiVY-2BScSuBH2OH1OpVT8jXDCAo5t-2BRZhcdezGXFntj090CC0-2F2NfWWWwgRzDSATLNHfq9On8f8Nd4pYQcJFcVi-2B-2Fhvs15ar9KzNJVtt5sG0xew-3D-3D> >> Address: 122 E Patrick St, Frederick, MD 21701 >> >> <http://link.wisestamp.com/wf/click?upn=vpKJERi1tY7PB5Tngc96A8GMKz6vw7z0JI8fZ2-2FFUEKeUDpKRYMDliKzBO-2Bh6KbQ_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKEMhW-2B40p6aeK-2FnYfufKui5X3yXXrCEJ2LAZEF-2BXc63to1kAmvLqlFm4601WxoxkZfyqgK6hF2t3ppQ7iL-2Bw5Lmm71ml3wmYwoyCIReMudhtHH85DJP6bop-2FJ2TGwpl-2B80-2B97G5wM-2B5aYK8qTB3WcX0lkFR-2Fjat8mWvxnHy350qjowrRAm6uxMOP-2BPziA5znmeAcqgpRVFMz6PzcAdiZgQQ-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=frqkw0-2BXQfUAqxIenKLOlEu-2FpxKX6jxgrO2YUXu2V3n3gNeFoNOcxvfdhHoTSaKi_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKGgR-2BPo8kK-2BYo-2F-2B0JIpdbg-2FPSiQRjqYwQqsksGYc0vWRxxriV32gIDYAYEeZkLi0Jhs2KbLriz0JIhCgD-2Bf5zbWtjNQhawhS8Jbs5OOjgWqlOL77ONDmg5IGRJRnQKaTTX-2FvtrWHOgqqHVbiZcwESLgAdXaibQX-2B1LIq1fEHb-2BUBXL2APeqLSAz3KqjVh8AZrRd2FJWu83SGwmynZXpA5fw-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=JpWBgyEnwHH-2BZ-2F6q0khuJM5k-2FxEUD4mWNZQVK1HDwzWC7HKYshpD0Roky5gXt7avdJ2szRciN-2F4agckv3ZFxeA-3D-3D_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKQdwpiCs9ZuBQrPUEj7sQUbBOvtdzrl9T1Z2O-2FRwX8nQZ3PNCXIHpzVNf4A2wFEDltVOhB4bbpG7CWozlv5aafhJ2vHyewhhP-2BCoDVAKOz1VurQlEzJzvq7V8p47BRUyJvJDHuVeCPg4O5SQ13qyjlXwU3WVysYiVTGVNrujqbDwDAWwiXh7-2FLP3KEp3sA45lL6rcLKwrU09FJJyMz1M-2B2A-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=LgCARJHnjtd3UE8bx6jzpg32zgjKYf8aPLFsr-2FxjMXR-2FCax144kUcm6o9L6ovRQS_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKDAgeqOLETuyPdJgM-2BEz3a4V72e7iQQu2XN0M-2FPFm3GYD1EdMpqYx-2FaTLQopStzwsSaaCW5pd04sCnGS-2FNXGe4G9vlGcAiOJmV8PdTfAI9Yo8t14MeLzjOG0PMqwAiOPq77kTtLu5Kd6qNWs9W1H6LzXqhQ-2BJeKdbbcpWKJdqoufb9XHHED5AficSuof8HXB2e7x0u6gFLnDV0f9EPWb-2BSg-3D-3D> >> >> >> On Mar 10, 2016, 6:07 PM -0600, Elizabeth Trice , wrote: >> >> When members sign up they sign an agreement that says they need to give >> 30 days notice to the first of the month if they want to discontinue their >> membership. We've done this both to not have surprise drops in revenue, but >> also to because we've noticed that it results in members who haven't been >> coming in much to start coming in again. Recently a few people got angry >> when they requested a change only a week in advance. How do others handle >> this? >> >> >> On Friday, March 11, 2016 at 7:13:55 PM UTC+1, Jerome wrote: > > We may or may not be in the real estate business, but is a hotel? > Regardless, members have to understand that we turned away inquiries for > their occupied desks. We at least need some time to re-occupy. > > A compromise to an exiting member would be to say, "up to 30 days or if we > fill that seat quicker" > > Jerome > www.BLANKSPACES.com <http://www.blankspaces.com> > > On Mar 11, 2016, at 9:41 AM, Tony Bacigalupo <[email protected] > <javascript:>> wrote: > > I was always pretty adamant about not taking money from people for > services they weren't going to use. If the only reason I can come up with > for keeping someone's money is that it's "policy" or because we want to > keep the money, that doesn't pass muster for me. > > I'd rather have their goodwill than their money. I've never been the > awesomest at making money, but I'd like to think there are better ways to > go about it. > > That being said, we focused on monthly individual memberships. I could see > that working differently if you're subleasing offices and such. But > coworking's not a real estate business, right? > > Plenty of members pay for services they don't use, and space owners profit > from that. Once in a rare while a member will complain; giving them their > money back is part of the cost of doing business. > > If a member's angry, I'd want to communicate with them, find out why > they're angry, and let them know they're heard. > > Maybe you can give them a partial refund and ask them to leave an honest > testimonial on Yelp/Google Maps/etc so they can help you better attract > their replacements. > > Tony > *---* > *New Work Cities <http://nwc.co/consulting> - Helping people build better > coworking cultures.* > *Open Coworking <http://opencoworking.org/> - Championing the global > coworking movement.* > > <web.png> <http://tonybacigalupo.com/><tw.png> > <http://twitter.com/tonybgoode><fb.png> > <http://facebook.com/tonybacigalupo><li.png> > <http://linkedin.com/in/tonybacigalupo> > > > On Friday, March 11, 2016, Glen Ferguson <[email protected] > <javascript:>> wrote: > >> We adopted the same policy as Jerome, and for the same reasons you cited. >> We explain that while we want 30 days notice, we understand that work today >> often doesn't function that way. New contracts, new assignment by >> employers; they often don't give the member themselves much notice. >> >> W also use the comparison to an apartment lease that collects first and >> last month's rent up front. (Yes, I know there are legal reasons to avoid >> terms like "lease", "deposit", and "rent". It's not a perfect analogy, but >> it helps). They make the mental connection and we've had zero complaints in >> over 2 years of doing it this way. >> >> *Glen Ferguson* Tummler, Cowork Frederick >> Phone: 301-732-5165 >> Email: [email protected] >> Website: http://coworkfrederick.com >> <http://link.wisestamp.com/wf/click?upn=hOBFNJQde5xdQoVn4ogqwuppxK3mfNmObodKMFVhwKI-3D_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKp-2B9bkPsOy4Afgxs39H7nHyQ02yPjXx-2FhH2qm2-2FBkLwMHZm-2FJ0sEqm2EW6JZcC-2FFZTN7mXDKY-2Fka-2BJ8AGuUhoylLBVJfP83xaxIbMIky9SiVY-2BScSuBH2OH1OpVT8jXDCAo5t-2BRZhcdezGXFntj090CC0-2F2NfWWWwgRzDSATLNHfq9On8f8Nd4pYQcJFcVi-2B-2Fhvs15ar9KzNJVtt5sG0xew-3D-3D> >> Address: 122 E Patrick St, Frederick, MD 21701 >> >> <http://link.wisestamp.com/wf/click?upn=vpKJERi1tY7PB5Tngc96A8GMKz6vw7z0JI8fZ2-2FFUEKeUDpKRYMDliKzBO-2Bh6KbQ_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKEMhW-2B40p6aeK-2FnYfufKui5X3yXXrCEJ2LAZEF-2BXc63to1kAmvLqlFm4601WxoxkZfyqgK6hF2t3ppQ7iL-2Bw5Lmm71ml3wmYwoyCIReMudhtHH85DJP6bop-2FJ2TGwpl-2B80-2B97G5wM-2B5aYK8qTB3WcX0lkFR-2Fjat8mWvxnHy350qjowrRAm6uxMOP-2BPziA5znmeAcqgpRVFMz6PzcAdiZgQQ-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=frqkw0-2BXQfUAqxIenKLOlEu-2FpxKX6jxgrO2YUXu2V3n3gNeFoNOcxvfdhHoTSaKi_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKGgR-2BPo8kK-2BYo-2F-2B0JIpdbg-2FPSiQRjqYwQqsksGYc0vWRxxriV32gIDYAYEeZkLi0Jhs2KbLriz0JIhCgD-2Bf5zbWtjNQhawhS8Jbs5OOjgWqlOL77ONDmg5IGRJRnQKaTTX-2FvtrWHOgqqHVbiZcwESLgAdXaibQX-2B1LIq1fEHb-2BUBXL2APeqLSAz3KqjVh8AZrRd2FJWu83SGwmynZXpA5fw-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=JpWBgyEnwHH-2BZ-2F6q0khuJM5k-2FxEUD4mWNZQVK1HDwzWC7HKYshpD0Roky5gXt7avdJ2szRciN-2F4agckv3ZFxeA-3D-3D_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKQdwpiCs9ZuBQrPUEj7sQUbBOvtdzrl9T1Z2O-2FRwX8nQZ3PNCXIHpzVNf4A2wFEDltVOhB4bbpG7CWozlv5aafhJ2vHyewhhP-2BCoDVAKOz1VurQlEzJzvq7V8p47BRUyJvJDHuVeCPg4O5SQ13qyjlXwU3WVysYiVTGVNrujqbDwDAWwiXh7-2FLP3KEp3sA45lL6rcLKwrU09FJJyMz1M-2B2A-3D-3D> >> >> <http://link.wisestamp.com/wf/click?upn=LgCARJHnjtd3UE8bx6jzpg32zgjKYf8aPLFsr-2FxjMXR-2FCax144kUcm6o9L6ovRQS_r-2BdYbSjRm9r0i9vSiPZtW-2BAPKyQklbPxdjb2bvgjOXUKay-2Fzcj6elT2l43mgUwrKDAgeqOLETuyPdJgM-2BEz3a4V72e7iQQu2XN0M-2FPFm3GYD1EdMpqYx-2FaTLQopStzwsSaaCW5pd04sCnGS-2FNXGe4G9vlGcAiOJmV8PdTfAI9Yo8t14MeLzjOG0PMqwAiOPq77kTtLu5Kd6qNWs9W1H6LzXqhQ-2BJeKdbbcpWKJdqoufb9XHHED5AficSuof8HXB2e7x0u6gFLnDV0f9EPWb-2BSg-3D-3D> >> >> >> On Mar 10, 2016, 6:07 PM -0600, Elizabeth Trice <[email protected]>, >> wrote: >> >> When members sign up they sign an agreement that says they need to give >> 30 days notice to the first of the month if they want to discontinue their >> membership. We've done this both to not have surprise drops in revenue, but >> also to because we've noticed that it results in members who haven't been >> coming in much to start coming in again. Recently a few people got angry >> when they requested a change only a week in advance. How do others handle >> this? >> >> -- >> Visit this forum on the web at http://discuss.coworking.com >> --- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> For more options, visit https://groups.google.com/d/optout. >> >> -- >> Visit this forum on the web at http://discuss.coworking.com >> --- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> For more options, visit https://groups.google.com/d/optout. >> > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected] <javascript:>. > For more options, visit https://groups.google.com/d/optout. > > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. 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