How To: Track Revenue by Service Type

Want to see which services actually make you the most money? Whether you're a hairstylist tracking color vs. cuts, a massage therapist comparing deep tissue to Swedish, or a consultant tracking different package types—knowing your revenue breakdown by service is essential for smart pricing decisions.

Here's exactly how to set it up in Velvet Ledger.

---

Step 1: Set Up Your Service Categories (One-Time Setup)

First, create categories that match how you think about your services.

Navigate to Categories

1. Go to Finances page
2. When creating or editing a transaction, you'll see the Category field
3. Click to add a new category if yours doesn't exist yet

Create Your Service Structure

For a salon professional, you might create:

Income Categories:

• "Color Treatment"
• "Haircuts"
• "Extensions"
• "Styling"
• "Treatments"

Pro Tip: Keep categories specific enough to be useful, but not so granular that logging becomes a chore. 5-8 categories is usually the sweet spot.

---

Step 2: Log Each Service with Its Category

Every time you complete a service:

1. Go to Finances → Click Add Income
2. Enter the amount (e.g., $150)
3. Select the Category (e.g., "Color Treatment")
4. Add a title or description if you want (optional but helpful)
5. Save

Speed Tips

• Use recurring transactions for regular clients with standing appointments
• Add tags for additional context (client name, location, etc.)
• Batch entry at the end of your shift if real-time logging isn't practical

---

Step 3: View Your Revenue Breakdown

Now for the good part—seeing which services actually drive your income.

Access Revenue Analytics

1. Go to Finances page
2. Click the Revenue tab in the Analytics section
3. Select Revenue Analysis sub-tab

What You'll See

The Revenue Breakdown Chart shows:

• Pie chart of income by category
• Percentage breakdown (e.g., Color = 40%, Cuts = 27%, Extensions = 33%)
• Click any segment to drill down into those transactions

Example Results

After a month of tracking, you might discover:

Service	Revenue	Percentage
Color Treatment	$12,000	40%
Extensions	$10,000	33%
Haircuts	$8,000	27%

---

What This Tells You

With this data, you can make smart business decisions:

If color brings in 40% of revenue:

• Invest in advanced color training
• Stock up on premium color products
• Consider raising color prices (high demand = pricing power)

If haircuts are only 27% but take equal time:

• Either raise haircut prices
• Or shift focus toward higher-margin services
• Use haircuts as "gateway" services to upsell color

If extensions are 33% with fewer appointments:

• This might be your highest profit-per-hour service
• Consider promoting extensions more heavily
• Train to become the "extension specialist" in your area

---

Bonus: Track Revenue Over Time

The Overview tab shows Monthly Trends—a bar chart comparing income vs. expenses by month. This helps you spot:

• Seasonal patterns (busy holiday season, slow January)
• Growth trends over time
• Impact of pricing changes or new service offerings

---

Quick Checklist

• Create 5-8 service categories that match your business
• Log income with the correct category each time
• Check Revenue Analysis weekly to spot trends
• Adjust pricing or focus based on what you learn

---

Ready to See Your Revenue Breakdown?

Start tracking today. In just a few weeks, you'll have clear data on which services are worth your time—and which ones might need a price adjustment.