In this article, we will look at how the commission is calculated for items covered by a package.
Things to know:
- The ability to set up commission for appointments, classes, and products covered by packages is governed by the "Packages" and "Accessing Staff Compensation" access control settings
- To receive a commission on package redemptions, compensation for services, classes, and products must be set up in the staff member's profile.
- The commission calculated on appointments, classes, and products covered by a package differs from the commission for package purchases. Learn more here.
- When a package is used to pay for an appointment, class, or product, the commission can be calculated based on either:
- Retail Price: The standard price of the service, product, or class
- Package Price: The per-item price within the package, calculated by dividing the total package price by the number of credits
- Commission is configured exclusively at the package level and applies equally across all staff members and locations. The price used for calculating commission is determined by: Total package cost ÷ number of item credits. Example:
- A package costs $90 and includes 3 item credits.
- Price per item credit: $90 ÷ 3 = $30
- If a staff member has a 10% commission rate configured on their profile, their commission when redeeming one credit from this package would be: $30 × 10% = $3.00 commission
- Manually removing a package label from a ticket will not adjust commission values in the Compensation Report or reverse a staff payout. Commission is only reversed when a formal refund is processed for the associated appointment, class, or product.
- Commission amounts may vary depending on the service performed and the package used. For example, if two clients book a men's haircut service—one using a Haircut Package and the other a Spa Package, both configured to use the package price—the commissions differ based on package details. The Haircut Package costs $50 with 5 item credits, while the Spa Package costs $100 with 4 credits. The service price is $50, and staff members receive a 10% commission when the service is performed.
- Calculation examples:
- Client A (Haircut Package): $50 / 5 credits = $10 per credit; $10 × 10% = $1 commission
- Client B (Spa Package): $100 / 4 credits = $25 per credit; $25 × 10% = $2.50 commission
Contents:
Staff Commission Calculated on Package Price
Staff Commission Calculated on Retail Price
Staff Commission Calculated on Package Price
When configuring packages, if the "Calculate Staff Commissions" field is set to "Package Price," the commissions for staff members will be calculated based on the discounted price of the items included in the package.
Configuration
Examples
1. The package is set up to provide three (3) item credits, with a total cost of $100. To calculate the price of each item credit, divide the total package price by the number of item credits:
- Package price: $100
- Number of item credits: 3
- Price per item credit: $100 / 3 = $33.33
2. The package is set up to provide two (2) item credits, with a total cost of $50. To calculate the price of each item credit, divide the total package price by the number of item credits:
- Total package price: $50
- Number of item credits: 2
- Price per item credit: $50 / 2 = $25
3. The package is set up to provide three (3) product credits, allowing it to be used to pay for three products. The total cost of the package is $100. To calculate the price of each product credit, divide the total package price by the number of product credits provided:
- Total package price: $100
- Number of item credits: 3
- Price per item credit: $100 / 3 = $33.33
Number of item credits 3
Commission Structure on Staff Profile
Calculation
Based on the settings above, when a client books an appointment or class or purchases a product that is covered by the package the employee will receive the following commission:
- Service commission - $33.33 x 15% = $4.9995
- Class commission - $50 x 10% = $5
- Product commission - $33.33 x 5% = $1.67
Staff Commission Calculated on Retail Price
When configuring packages, if the "Calculate Staff Commissions" field is set to "Retail Price," the system will use the retail prices of services from the service menu, the configured class prices, and the prices of products from inventory.
Configuration
Examples
Service Price
Class Price
Product Price
Commission Structure on Staff Profile
Calculation
Based on the settings above, when a client books an appointment or class or purchases a product that is covered by the package the employee will receive the following commission:
- Service commission - $180 x 15% = $27
- Class commission - $100 x 10% = $10
- Product commission - $50 x 5% = $2.50
For more information, contact us at support@mytime.com or (385) 233-6964.
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