The short answer
To manage prepaid beauty packages well: give clients clear written terms at purchase, record every redemption, show the remaining balance on every receipt, make expiry and transfer rules visible, avoid high-pressure selling, and track your package liability — the value of sessions you still owe clients.
Why packages matter
Packages reward loyal clients with better value and give businesses predictable revenue. But the beauty industry has historically been among the more complained-about sectors in Singapore, and prepaid packages are a recurring theme. Transparent handling protects both your clients and your reputation.
Good practice for prepaid packages
- Put the terms in writing. Services included, number of sessions or value, expiry, whether it can be shared or transferred, which outlets accept it, and the refund policy.
- Never pressure. Allow clients time to decide; avoid selling during a treatment when they can’t comfortably leave.
- Record every redemption. Date, service, staff member and outlet — automatically, not on a paper card.
- Show the balance every visit. On the receipt, and on request by WhatsApp or email.
- Remind before expiry. Clients appreciate a reminder to use sessions before they lapse.
- Be consistent across outlets. One record per client, whichever branch they visit.
- Plan for the unexpected. Know how you would honour or refund packages if circumstances change.
Understanding package liability
When you sell a package, you receive cash for services you haven’t delivered yet. That unearned amount is a liability. Knowing your total package liability — by outlet and package type — is essential for cash-flow planning and for making sure you can always honour what clients have paid for. Speak to your accountant about how to treat it in your accounts.
How software helps
Package management software removes guesswork: balances update automatically, receipts show what’s left, expiry reminders go out on time, and a liability report shows what you owe. Learn more about BeautyMatters packages, memberships and loyalty.
This guide is general information and not legal or accounting advice.