Billing Hourly in iClassPro

Should I bill hourly in iClassPro?

The answer to this question is usually pretty simple. If you bill or discount customers by the number of hours an individual student or family is enrolled, you’re going to need to also bill hourly to get to the appropriate discounted amounts. 

How do I figure out my hourly rate?

For the best results, your hourly rate should be equal to or more than* the amount you charge for your shortest hourly class. (Because discounts cannot add to a tuition, it is always important to start with the most expensive classes- which are usually the shortest in length.)

For example, if the shortest class at my business is a $40 half hour class, my base hourly rate would need to be at least $80. Why? That way, if my hour long classes run $60 each, I can create a discount for $20 or 25% for a full hour class. If I had used $60 per hour instead, my half hour class, would have worked out to an un-discounted amount of $30 (60/2 = 30) —which is $10 short of what I actually charge.

This amount will be used as the Tuition (Settings > Setup > Class Settings > Tuition) attached to the class from the class billing tab. Additionally, each hourly class will need to have the “This class bills hourly” option checked.  

Note: You will know if your hourly rate needs to be higher than the amount you charge for the shortest hourly class if any of your discounts in Step 3 show a negative discounted amount or percentage (that indicates that in order to come up with the tuition amount you entered, you would need to charge more than the current rate).

What about discounts?

Great! Half the work is over. Now, it’s easiest to use a program such as Microsoft Excel or another spreadsheet capable software to use formulas to calculate your discounts.

A sample spreadsheet is attached at the bottom of this article with suggested setup displayed in the following graphics:

 If you are using Firefox and these images appear blurry, try zooming in or out using CTRL + or CTRL - , respectively.

Calculations View:                                                                 


Formula View:


Based off of the previous example, this table illustrates the discounts at my gym. For detailed information about how this spreadsheet is set up, read the descriptions below.

Column A: Lists the different totals of hours that students can take at my gym (in decimal format).

Column B: Enter the base hourly tuition rate that you found in Step 2.

Column C: Calculate the non-discounted price (# of hours X base hourly rate).

Column D: The Target Price is how much I want to charge for this number of hours.

Column E: The difference, or discounted amount (in dollars), between the Undiscounted Price versus the Target Price.

Column F: The percentage of the Undiscounted Price that is being charged to customers (Target Price/Undiscounted Price).

Column G: The Discounted Percentage of tuition. This can be calculated as either the Discount Amount divided by the Undiscounted Price, or as (1-Percent Charged).

Note: If you offer sibling or second child discounts, it is easiest to copy the spreadsheet, label it something similar to "Second Sibling Price," and simply adjust the target price (the desired price of the class) to reflect the sibling's tuition price.

Setting Up the Discount Schedule.

When entering your discounts into the iClassPro Discount Schedule (Settings > Setup > Class Settings > Discount Schedules) section for classes as percentages, remember to include the percent sign (%). You can enter percent discounts up to the fourth decimal place, such as 8.3333%.  

For more detailed information on discount schedule setup, click here.

Attach the Discount Schedules to Classes/Programs.

By default, Discount Schedules are attached to Programs (Settings > Setup > General Settings > Programs). You will edit the program and attach a discount schedule to use for all classes underneath that program.

If all of the classes underneath a program do not bill hourly, or the discounts are different amounts for different classes within a program you have set up in iClassPro, then you can override the discount schedule used on a per-class basis from the Billing tab on each class as accessed from the Classes Page.

iClassPro Hourly Discounts Calculation Table.xlsx

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