A well-rounded med spa service mix is important for attracting a steady flow of new clients and maintaining loyalty from existing ones.
Depending on a single product or service as your main revenue driver is risky because you never know when demand will fall and clients leave. A med spa that is positioned for growth and long-term success is one that diversifies its providers, services, and target client base.
In this article, we’ll explain how to choose medical spa treatments with high margins of profit and some strategies for maximizing your revenue.
Key Takeaways
- Consider the expenses required for sourcing treatment-specific equipment, consumables, and associated recurring costs when choosing services.
- Offer popular treatments like botox, dermal fillers, cryotherapy, and microneedling, which are always in high demand.
- Differentiate your med spa with innovative treatments—such as micro-coring, neck and décolletage treatments, and cold plunge therapy—which may not be available at all competitors.
- Adjust your service mix according to seasonal trends.
- Ensure your services align with your staff’s expertise and state regulations, as certain procedures require licensed medical professionals to perform them.
- Simply choosing the right service mix is not enough. A focus on exceptional client experience, including education, personalized care, and feedback, will win you long-term loyalty and referrals.
- You should also use digital marketing through social media, SEO-optimized websites, Google My Business listings, and email campaigns to build a strong online presence.
Factors to Consider When Deciding on Your Medical Spa Service Mix
Here are five factors you should take into account when thinking about the services you will offer:
1. Upfront Investment
Choose your med spa service mix with both short- and long-term financial implications in mind.
The most significant investments in a medical spa are medical and aesthetic devices. These machines—such as laser hair removal machinery, botox machines, cryotherapy, and skin peels equipment—have price tags in thousands of USD.
Beyond the purchase price, equipment also comes with service contracts and warranties that add to the expenditure.
Consumables will also be a recurring expense that impacts the profitability of certain services. Treatments like injectables (like neurotoxins and fillers) and IV therapy require a continuous supply of needles, syringes, and serums.
Offering a mix of both high- and low-investment services will help you maintain your cash flow and target a wide range of clients.
2. Emerging Trends
The med spa industry thrives on trends. Sticking to a static set of services could mean falling behind in an industry where clients seek the latest, most effective treatments.
To keep your med spa service mix competitive, keep tabs on ongoing research, FDA approvals, and treatments demonstrating strong clinical trial outcomes.
One good example of an emerging trend is the micro-coring procedure. While many of us are already familiar with microneedling, Ellacor pioneered the term “micro-coring,” a procedure that removes small cores of skin tissue by up to 10% of the skin’s surface area.
It was tested clinically on 51 participants who underwent 2-3 treatment sessions with 7%-8% skin removal and needle depths up to 5 mm and reported significant aesthetic improvements and patient satisfaction. [1] Micro-coring has become highly sought after in 2024.
Other examples of emerging trends in the med spa industry include neck and décolletage treatments, cold plunge therapy, and picotoning. You can attract a wider client base by including these advanced, research-backed treatment options in your service mix.
3. Available Expertise and Staff Capabilities
State laws on who can administer med spa treatments vary. [2] In Arkansas, for example, trained advanced practice registered nurses (APRNs) or registered nurses (RNs) are allowed to perform aesthetic procedures as part of a medically prescribed care plan.
In contrast, the Alabama Board of Medical Examiners states that procedures involving med spa botox, collagen, and mesotherapy are considered medical practice and must be conducted by a licensed physician (MD, DO).
Generally, most states require that a physician (MD or DO) serve as a medical director to oversee procedures such as laser treatments, injectable neurotoxins, and dermal fillers.
RNs and Licensed Practical Nurses (LPNs) are needed to handle the administration of injections, IV therapy, and minimally invasive skin procedures.
The scope of services you offer must align with the qualifications of your team to ensure patient safety and regulatory compliance.
4. Revenue Potential
The profitability of various treatments varies significantly and is influenced by treatment frequency and popularity.
Injectable treatments such as botox and dermal fillers are consistently popular and profitable. Data shows that over 7.4 million botox treatments are performed annually. [3]
Similarly, hyaluronic acid fillers have demonstrated a 15% annual increase in procedures, which highlights the growing demand for non-surgical facial enhancements.
These treatments offer high margins and ensure steady revenue through frequent follow-up appointments as patients return for maintenance.
In addition, a study involving over 13,000 retailers found that the average gross profit margin across retail sales was 53.33%. [4] The cosmetic retail industry touched an annual profit margin of 58.14%, so retail medical-grade med spa skincare and cosmetic products should definitely be a part of your service mix.
5. Seasonality Planning
Consider adjusting your med spa service mix based on seasonal trends. For example, early in the year is an ideal time to promote laser services and chemical peels due to favorable winter conditions. Since clients are less exposed to the sun, they see better results in winter.
Similarly, January might be the perfect time to promote body contouring and weight loss programs. That’s because a Forbes Health survey for 2024 showed that 33.8% of people had weight loss as their top priority among their New Year’s resolutions. [5]
As spring approaches, clients start preparing for the warmer months which results in a higher interest in treatments like laser hair removal and skin rejuvenation. You can introduce early promotions in late winter to attract bookings ahead of peak demand.
An Example of a Good Med Spa Service Mix
A well-rounded medical spa service mix combines core services, complementary offerings, and unique treatments. Here’s an example of services you can take inspiration from:
- Core services—Botox, dermal fillers like Juvederm and Restylane, cryotherapy, and microneedling are staples in many med spas. You need a foundation of treatments that clients consistently seek for anti-aging, body contouring, and skin rejuvenation.
- Complementary services—Offering services like facials, chemical peels, and LED light therapy, and complementary retail skincare products will help you maintain the results of the core treatments while providing clients with holistic care.
- Seasonal services—As discussed above, many services align with specific times of the year. Make sure to offer them if appropriate.
- A unique service—A unique selling proposition (USP) service will distinguish your meds pa from the competition. Try including an advanced service that other med spas in your area don’t offer to attract new customers. Micro-coring, as seen with Ellacor, is a great example of a USP service.
How to Maximize Med Spa Profitability
You can be the best service provider in the world but if you don’t know how to attract and retain customers, you won’t build a successful med spa business.
After you’ve chosen the right service mix, here are some marketing and sales ideas to help you maximize its profitability:
- Membership programs—Offer multiple membership tiers catering to different needs and budgets.
- Loyalty programs and referrals—Develop a points-based system where clients earn rewards for visits to encourage repeat business. If a client brings a referral, reward both the existing client and the referred patient with discounts or points.
- Cross-selling treatments—Bundle treatments into packages at discounted rates to increase the overall patient spending per visit.
- Invest in client experience—Create a soothing atmosphere with a clean interior, professional staff, and relaxing amenities.
- Patient education—Educate your clients thoroughly on procedures they are interested in, post-treatment care, and realistic expectations to build trust.
- Streamline appointment scheduling—Minimize wait times by implementing easy online booking and sending reminder notifications.
- Use digital marketing—Engage with clients on social media and post before-and-after pictures. Use targeted ads to attract local patients and ensure your website is search-engine-optimized, mobile-friendly, and includes necessary scheduling and contact information.
Final Thoughts
Choosing the right med spa service mix is one part of the equation. The other part is sourcing high-quality and original cosmetic products to ensure your clients remain safe and satisfied.
That’s where we come in. We’ve been supplying 100% genuine cosmetic products to licensed medical professionals for the last 13 years. Join our list of successful med spa practices by scheduling a demo with our sales team today!
FAQs
What Is a Good Profit Margin for a Spa?
A good profit margin for a spa falls between 10% and 15%, which is the most common range for many spas according to the International Spa Association. [6] Around 21% of spas in 2022 reported a profit margin of 35% or higher, which is a very good margin that you can aim for.
How to Create the Right Med Spa Service Mix as a Solo Provider?
As a solo provider, start your spa by specializing in one high-demand, profitable service. Gradually expand your offerings as you build resources and clientele.
How Do I Sell My Product in a Spa?
Highlight product benefits during consultations, demonstrate before-and-after results, offer personalized recommendations, and create bundled medical spa packages to sell your products.
References
1. Gfrerer, Lisa, et al. “Dermal Micro-Coring for the Treatment of Moderate to Severe Facial Wrinkles.” Plastic and Reconstructive Surgery – Global Open, vol. 10, no. 10, Oct. 2022, p. e4547, www.ncbi.nlm.nih.gov/pmc/articles/PMC9575956/. Accessed 20 Dec. 2022.
2. “Botox Laws by State 2024.” Worldpopulationreview.com, 2024, worldpopulationreview.com/state-rankings/botox-laws-by-state. Accessed 13 Nov. 2024.
3. “2018 Plastic Surgery Statistics.” American Society of Plastic Surgeons, www.plasticsurgery.org/news/plastic-surgery-statistics. Accessed 13 Nov. 2024.
4. 5 Surefire Ways Retailers can Increase Profit Margins. Lightspeed. https://www.lightspeedhq.com/blog/retail-profit-margins/
5. Lloyd M. 2024 New Year’s Resolutions: Nearly Half Cite Fitness As Their Top Priority. Forbes Health. Published November 15, 2023. https://www.forbes.com/health/mind/new-year-resolutions-survey-2024/
6. 2022 ISPA U.S. Spa Industry Study – International Spa Association. https://experienceispa.com/research-lib-archive/2022-ispa-u-s-spa-industry-study/
