How much revenue does a medspa generate?

According to Thiersch, retail accounts for 8-20% of a medical spa's total revenue, with an ideal range of 15-20%. Durocher recommends that the total compensation of a medspa compared to service dollars should not exceed 35 percent, where the total payroll burden of the spa would not exceed that percentage. Although some of the practices may reduce the marketing budget, the cost of sale will generally remain at a fixed% of revenue, since internal sales have a high variable linked to the size of sales. Medical Spa's gross profit margin calculation follows the same idea; simply subtract the COGS from the total revenue, divide that amount by the total revenue, and multiply it by 100.

There are so many facets involved in handling a medspa, that even the smallest of errors could turn one red in the blink of an eye. It's important to track and hold staff accountable for prior bookings because it helps the provider control their schedule, generates future business, and creates consistency and stability within the medspa. While doctors in a medical practice may be hesitant to sell products, people who work in a spa or spa have to sell products because the real margins are in retail, Durocher says. Durocher recommends that the total compensation of a medspa compared to service money should not exceed 35%, where the total payroll burden of the spa would not exceed that percentage.

Janis Veino
Janis Veino

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