Free service revenue allows you to award commission to a provider even when the service they are performing was given free or at a discounted rate to a guest.
Consider this example. A full body massage service normally costs $100. A campaign offers this service at 20% discount. This means a guest who avails the service during the campaign period pays $80. Here, $80 is the paid service and $20 (the discounted amount) is the free service revenue.
To understand free services in Zenoti, you must understand the following concepts:
- Free Service Revenue
- Free Service Commissions
Free Service Revenue
When your center offers discounts on services, the revenue from services is lesser when compared to normal times. In such cases, the service providers may assume that their potential earnings are affected (as the guest pays a reduced price due to discounts).
Consider the above example again. A service provider may assume that by giving a discount (of 20%), the potential commission is reduced (because the revenue from the same service is reduced due to the campaign). To address this concern, Zenoti has the concept of free service revenue.
Free service revenue in Zenoti is a tool to award the commission to employees such that employees’ interests (for providing services and therefore of earning corresponding commissions) are not adversely affected.
Free service revenue is not a revenue that is counted against a center’s earnings. In Zenoti, free service revenue is a number that Zenoti tracks against individual service providers so as to award the appropriate commission to the associated service provider.
Free service revenue includes:
- Amount redeemed using loyalty points (configurable at the organization level from Admin > Organization > Organizations > Points > Redemption Settings > Calculate commission on point redemption amount as Free Service)
- Invoice amount discounted by campaign (configurable at individual campaign level from Marketing > Campaigns > Email/Text Message Campaigns > Select Recipients > Campaign discount and redemptions contribute to free service amount)
- Invoice amount discounted by membership (configurable at the individual membership level from Marketing > Memberships > Memberships > Name of the Membership > General tab > Properties section > Membership discount and benefit services contribute to free service amount)
- Amount redeemed using membership service credit (configurable at the individual membership level as mentioned above)
- Redemption using a $0 priced gift card (configurable at the center level from Admin > Organization > Centers > Name of the center > Settings > Employee > Free Service Revenue includes > Redemption of gift card priced at $0)
- Redemption using a $0 priced prepaid card (configurable at the center level from Admin > Organization > Centers > Name of the center > Settings > Employee > Free Service Revenue includes > Redemption of prepaid card priced at $0).
Note: Administrators can additionally configure the setting Include $0 priced prepaid cards issued during refund to include the value of $0 priced prepaid cards into free service revenue.
While processing a refund, the front desk may issue a prepaid card instead of cash with the refund amount as the value (example: $50). In such cases, Zenoti adds the ‘value’ ($50) of such prepaid cards into free service revenue. Such prepaid cards are $0 priced because guests need not pay for them (as it is a refund).
- Invoice amount reduced using manual discount or application of coupon (configurable at the center level from Admin > Organization > Centers > Name of the center > Settings > Employee > Free Service Revenue includes > Manual discounts)
Important: When guests use the following methods to pay for a service, they do not account for free service revenue:
- Membership credit balance
- Package discount
- Non-zero priced gift card
- Non-zero priced prepaid card
Free Service Commissions
Free Services commissions are commissions that employees earn on revenues for services on which discounts apply such as manual, campaign, and membership discounts. Free Services commissions also apply to methods of payment such as membership service credits, loyalty points, and zero-priced gift cards and prepaid cards.
Example: When guests get discounts on services as part of a manual discount, the discounts account for Free Service revenues. For example, a service costs $100, but you offer a discount of $10, so the guest pays only $90.
In such cases, your center can decide whether to offer the free service commission either on the cost of the service ($100) or at the discounted price ($90). The free service revenue, in this case, is $10. In Zenoti, you can set up free service commissions at the center level.