Latest / Cash Flow Conversations with Fexingo: Working Capital, Receivables, and Small Business Finance
How a Bike Shop Used Prepaid Subscriptions to Smooth Cash Flow
In this episode, Lucas and Luna examine how a small independent bike shop in Portland, Oregon, used prepaid annual service subscriptions to transform its cash flow. By offering customers a $199 yearly maintenance plan — covering tune-ups, flat repairs, and a 10 percent discount on parts — the shop collected $40,000 in upfront cash in January, smoothing its historically volatile revenue. The hosts walk through the math: how the shop calculated the subscription price based on average service revenue per customer, the 12-month cash flow projection that convinced the owner to try it, and the…
The skinny
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