How is a class’s Profitability calculated?
By looking at the class’s Earned Revenue minus the Teacher’s Payout for that class. (both will show on the class details page)
How is the Earned Revenue calculated?
From drop-in payments and subscriptions used to register for the class.
How is Earned Revenue calculated when Subscriptions and Packs are used?
With Limited Use Memberships (and Packages), if you have a $100 subscription (or package) of 10 credits, each credit is worth $10.
So even if the drop-in price of the class is $25, when a customer uses this subscription or pack to book a spot in that class, the earned revenue from this individual booking is always going to be $10.
With an Unlimited Membership, earned revenue is calculated as the renewal price paid for the membership divided by the current number of bookings in this renewal. In other words, as more bookings occur, this figure will continue to divide down by the number of bookings.
Important: with unlimited memberships, earned revenue is calculated as the lesser of two options:
a) either the classes' drop-in price (ex. $25); or
b) the customer's membership renewal price divided by the customer's current usage: (ex. $250 a month divided by 8 = $31.25).
Here are 2 Examples
1) In the case above, the earned revenue for this customer's booking of this class is calculated as the drop-in price of $25. This is because $25 is less than $31.25.
2) But what if a client is on their 11th class (250/11 = $22.73)? Since $22.73 is less than the drop-in price of $25, earned revenue for this class booking is calculated as $22.73.
Where can I see which pay rate is assigned to a class and how that pay rate works?
To view the pay rate assigned, from the class’s Details page, click Actions > Edit this class > scroll to Studio Settings.
To look at how each pay rate works, click Studio Setup > Pay Rates. To learn more about Pay Rates here.