Revenue and collections
salon360 counts money in two ways, and they answer different questions.
- Revenue is what was sold: the value of the services and retail your team delivered, on the day of the work, however the guest paid.
- Collections are the money your location actually took in, on the day it was paid.
The two are usually close but rarely equal, and neither will match the gross total printed on your tickets.
Sales is not a third way of counting. It is an everyday word that appears in some page and column names, such as the Sales Dashboard and Roll Up Sales, and each figure under those names is either revenue or collections.
Collections: money taken in
Collections count a payment on the day it is made. The same rules apply everywhere this figure appears:
- Tips are left out. They belong to your staff, not the business.
- Gift cards, membership credit, account credit and packages count once, when they are bought. A visit paid with one of them adds nothing on the day of the visit, because that money was already counted.
- Refunds come off on the day they are processed.
- Comped work adds nothing.
Sales tax is always left out. What counts as a payment depends on your franchise system:
| Payments counted | |
|---|---|
| The Lash Lounge | Card, cash, bank payment and Apple Pay. A service or product paid on a trade account is not counted, because no money came in. |
| Bishops | Card, cash, check and custom payments |
| Frenchies | Card, cash, check and custom payments. The figure is Net Collections on the point of sale's KPI report less the sales tax collected |
Membership-heavy locations often read lower than their gross ticket totals. Much of what members "spend" on a visit is credit they paid for earlier, and it was counted then.
Comparing with Mindbody (The Lash Lounge). Collections match Sales on Mindbody Analytics' Overview page with Gift Cards / Payment on Account Recognition set to At Time of Sale. Monthly Salon Metrics counts services when they are performed.
Comparing with Zenoti (Bishops and Frenchies)
Collections for Bishops shops and Frenchies studios match Zenoti's Sales - Cash report, run like this:
| Setting | Use |
|---|---|
| Date | Payment date, for the same range you are checking in salon360 |
| Invoice status | Open and Closed. A payment counts on the day it is taken, even if the invoice hasn't been closed yet |
| Column to total | Sales Collected (Exc.Tax): before sales tax, with tips left out |
What the figure includes:
| Payment type | Counted? |
|---|---|
| Card | Yes |
| Cash | Yes |
| Check | Yes |
| Custom payments (for example Class Pass, Redo, Other) | Yes |
| Membership credit | No, the dues were counted when they were paid |
| Gift card or prepaid card redemption | No, the card was counted when it was bought |
| Loyalty points | No, no money came in |
| Tips | No |
| Sales tax | No |
Buying a gift card or prepaid card counts on the day it is paid for. When an invoice is paid partly by card and partly with credit, only the card part counts. Refunds come off on the day they are processed.
Reconciled this way, each location matches to within cents for the month. Zenoti spreads each payment across the items on the invoice and rounds every line, so a busy location's total can differ by a few cents, rarely more than 30.
If you leave Open invoices out of the report, salon360 reads higher by any payments taken on invoices that haven't been closed, such as a product or prepaid card rung up on its own invoice and never closed. Closing those invoices in Zenoti brings both figures together.
Collections are the figure behind:
- the sales bars, the Month-to-Date Sales card, Sales — Year Over Year and Average Sales by Day of Month on the Sales Dashboard, and your collections goal;
- Adjusted Sales in Roll Up Sales and Weekly PE Summary, Collections in Systemwide Data and Franchise Performance, and the actuals in Budget vs Actual;
- Package Sales $ in Package Performance and Weekly Flash;
- lifetime figures: Lifetime Spend on the Member Report and Franchisee Prospects, Spend and Retail on Lifetime Value of Member, and Lifetime value in Clients;
- marketing: collections on Marketing Health, the ads pages, Marketing Leads and Lead Manager, and the spend conditions in Call to Rebook campaigns.
Card convenience fees, where a salon charges them, can be shown or hidden: the Sales Dashboard has a CC fees switch and Roll Up Sales has Include CC Fees.
Revenue: what was sold
Revenue answers a different question: how much work did the team deliver?
- A service counts at its price on the day it is performed, and retail on the day it is sold, however the guest paid: card, cash, membership credit, a gift card or a package.
- Sales tax and tips are left out.
- Membership dues, gift card purchases and package purchases are not added on top. The value shows up when the service they pay for is performed.
Revenue is the figure behind Avg Revenue per Visit, Retail %, Revenue / Stylist Hour, the Average Stylist Revenue table and Average Revenue by Day of Week on the Sales Dashboard, Avg Revenue per Visit in Systemwide Data, every revenue column and Avg Revenue per Visit in Monthly Salon Metrics and Monthly Shop Metrics, and the Revenue by Employee report.
Revenue also counts no-show and cancellation fees: the charges a guest pays for missing an appointment or cancelling it late. At Bishops shops and Frenchies studios it matches Total Revenue on the point of sale's KPI report. At The Lash Lounge a member of another salon served at yours counts at the value of the credit they used, the same way the point of sale treats it; the credit a member of yours spends elsewhere is not revenue to you (it is settled through the Cross-Center Redemptions report).
Why the two differ
- A member who pays dues but visits less than the dues cover shows more in collections than in revenue. A member who visits more shows the reverse.
- A guest who pays ahead shows in collections on the day they paid, and in revenue on the day of the appointment.
- A gift card shows in collections when it is bought, and in revenue when it is used.
Because of this, a figure built on revenue, such as Avg Revenue per Visit multiplied by Total Visits, will not add up to a collections figure such as the Month-to-Date Sales bar. That is expected.