CCS Plus Consulting Team
Short answer: package gross profit has to be worked out twice. At the time of sale, estimate it using the costs set in the system. When the customer comes back and the service is done, calculate the profit actually earned on what was used. Look only at the moment of sale and you often think it's very profitable, then find out you're losing money once it's done.
With other systems, you don't know whether the package you sold makes or loses money. With CCS Plus, you know right away.
First: estimated gross profit at the time of sale
When a package is sold, no service has been done yet, so you can only estimate.
| Package type | How to estimate gross profit | Example |
|---|---|---|
| Course (one treatment, several sessions) | Price − sessions × cost per session | 10 facials for RM1,000, cost RM35 each → RM1,000 − RM350 = RM650 |
| Program (a mix of items) | Price − sum of (quantity × cost) for each item | RM1,500 for 5 treatments (cost RM35) + 2 products (cost RM90) → RM1,500 − RM175 − RM180 = RM1,145 |
| Prepaid, Club | Price − cost set in Settings | Uses the cost you set |
Second: gross profit earned when the service is done
Each time the customer comes back, that session's profit actually happens. For a Course, value per session = package price ÷ sessions. In the example above, each session is worth RM100 and costs RM35, so each session earns RM65.
If the customer comes 4 times and stops, the profit you've actually earned is 4 × RM65 = RM260. The other 6 sessions are still service you owe.
Prepaid credit is the easiest to get wrong
A customer pays RM1,000 and gets RM1,200 of credit. She uses a RM120 treatment. It looks like you received RM120, but it's really only worth RM100 of her money.
| A RM120 treatment paid from credit (cost RM35) | Gross profit |
|---|---|
| Treated as RM120 received | RM85 (overstated) |
| Using the actual money equivalent, RM100 | RM65 (correct) |
If the credit was given free (the customer paid nothing), that service has no income, only cost, so the gross profit is negative. The more you give away, the more carefully you need to count.
Why ordinary systems get it wrong
- They record the sales amount but not each item's cost.
- They can't separate "sold" from "done", so the whole package counts as earned on the day it's sold.
- Prepaid credit is just one balance, with no split between money paid and value given.
How CCS Plus does it
Costs are set in Settings. When a package is sold, the system estimates gross profit as above; when the customer comes back and the service is done, it calculates the earned profit using the value per session. Prepaid credit records two numbers, the money the customer paid and the value she can spend, and each use is costed at its money equivalent.
Do this today
Take your best-selling package and work out its estimated gross profit with the formula above, then the profit each session earns. If it's prepaid credit, remember to use the money actually received.
FAQ
Why isn't package gross profit accurate at the time of sale?
Because no service has been done yet. At sale you can only estimate using set costs; profit is actually earned when the customer comes back and the service is done. Sessions not yet used are still service you owe.
How does the bonus on prepaid credit affect gross profit?
If a customer pays RM1,000 for RM1,200 of credit, every RM120 of value used is really only RM100 of her money. Costing it at RM120 overstates the profit.
Do free treatments or free credit have gross profit?
There's no income, only cost, so the gross profit is negative. The more you give away, the more carefully you need to count the cost.
Further reading: Your signature package is killing you · Are the packages your salon has sold a liability? · 30 things a billing system won't tell you
Want to see how CCS Plus makes these numbers clear? Book a 30-minute Demo and we'll show you using your real data.
