When it comes to running a medical spa, understanding the profit margins is essential. To calculate the profit margin of your medical spa, you'll need to take into account all your income and expenses and make some basic calculations. It is important to track and hold staff accountable for pre-booking as this helps the provider have control of their schedule, generates future business, and creates consistency and stability within the medical spa. The gross profit margin calculation for a medical spa follows the same idea; simply subtract the Cost of Goods Sold (COGS) from the total revenue, divide that number by the total revenue, and multiply it by 100.
According to Thiersch, retail represents between 8 and 20% of the total revenues of a medical spa, with the ideal range being between 15 and 20%. Durocher recommends that the total compensation of a medspa compared to service dollars should not exceed 35 per cent, where the total payroll load of the spa would not exceed that percentage. It is clear that retail plays an important role in generating revenue for a medical spa. People who work in a medical spa or spa have to sell products because the real margins are in retail, Durocher says. Therefore, it is essential for medical spas to understand their profit margins in order to maximize their profits.
