How Much Revenue Does a Medspa Generate?

Medical spas are becoming increasingly popular, and with that comes the need to understand how much revenue they generate. According to Thiersch, retail accounts for 8-20% of a medical spa's total revenue, with an ideal range of 15-20%. Durocher suggests that the total compensation of a medspa should not exceed 35% of service dollars, and that the total payroll burden should not exceed that percentage either. The gross profit margin calculation is done by subtracting the cost of goods sold (COGS) from the total revenue, dividing that amount by the total revenue, and multiplying it by 100.

It is essential to track and hold staff accountable for prior bookings in order to control the provider's schedule, generate future business, and create consistency and stability within the medspa. Additionally, people who work in a spa or medspa must sell products because the real margins are in retail, according to Durocher. Managing a medspa requires attention to detail and careful oversight. Even the smallest of errors can lead to financial losses.

It is important to understand how much revenue a medspa generates in order to ensure its success.

Janis Veino
Janis Veino

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