As an entrepreneur, one of the essential factors that you have to check before opening a business is the potential profit margin. Profit margin varies for every business tremendously. The ratio varies from medical spas, day spas, and resort spas. Medical spas that are operated and owned by well-trained plastic surgeons and dermatologists have different setups.
With medical spas, the practice pays the bills. Next is to invest in medical facilities as this is one of the significant factors that grow your patients and makes the business profitable. To attract potential clients, you also have to invest in your medical aesthetic facilities and structure.
How Much Do MedSpa Make Annually
According to research done by AmSpa, an average medspa brings about 1 million dollars annually. In comparison, well-known cosmetic procedures can range up to 4 to 5 million dollars per year. While digits can be enticing, we have to look at the investments these businesses have to undergo before reaching their target revenue.
Medical spas that operate as a standalone business have relatively smaller revenue. They are responsible for the overall expenses, marketing, product cost, and compensation. The profit margin of medspas varies on their operating expenses, and it can range between 10 to 15%. However, if you can set up a great med spa in Greenville, hire a great team, offer in-demand treatments, and get the best marketing professionals to keep a pool of patients into the front door, you’re one step closer to success.
Most medspa owners don’t consider the impact of their profit margin as long as they open the business. Physicians and other healthcare professionals are excellent in providing healthcare services but struggle to keep the company profitable. As a med spa owner, you have to learn how to treat your facility as a business and keep in mind that profit margins are essential to keep your business operating for a long time.
What Are Most Profitable Med Spa Treatments
The medical spa industry is one of the highly profitable businesses nowadays. Generating up to 4 billion dollars annually and will continue to grow by about 8% by 2022. With over 5,400 medical spas and growing to this date in the US alone. With millions of facility visitors and treatments yearly, no wonder more business entrepreneurs are eyeing to be part of this growing community.
The medical industry is projected to grow double in the next few years. 52% of medical spa clients range between the age of 30 to 60 years old. With a massive 85% of pharmaceutical spa clients are women. Most of them are looking for aesthetic services to enhance their physical appearance, especially to combat the signs of aging.
With this data in mind, offering the right services on your medspa helps your business grow. There are specific revenue-generating procedures that every medspa should offer. It increases stability and tight profit margins to promote their business to grow and stay for a longer time.
Injectable Hyaluronic Acid (HA) is the type of temporary soft tissue fillers used to eliminate or manage the appearance of fine lines, facial folds, wrinkles, and improve the volume, or create a structure to the face or lips. These injectables are scientifically tested, research, and FDA approved to be used on cosmetic enhancements and surgeries.
Also known as Xeomin or Dysport, Botulinum toxin is FDA-approved for implementation, enhancements, and treatment of certain illnesses. It’s one of the most popular cosmetic improvements that help reduce fine lines and wrinkles.
Botox is one of the safest procedures to combat anti-aging and rejuvenate skin. Aside from aesthetic procedures, it is also used to cure severe headaches, chronic migraines, and excessive sweating.
Also known as body sculpting, is the term used to describe non-surgical procedures or plastic surgeries to reshape or improve the body’s physical appearance.
Microdermabrasion is the process of exfoliating, treating light scarring, sun damage, stretch marks, and discoloration. A minimally abrasive instrument is used for this treatment, Which gently sands your skin surface and reduces the thick, damaged outer layer of your skin.
Laser hair removal
The process of removing unwanted hair through exposure to laser lights that destroy the hair follicles. The procedure is relatively new. However, the FDA approved the process of using laser treatments. Tons of positive feedback regarding this treatment and expected to grow the digits as more people will be open to the process.
The bottom line, opening a med spa, enables you to generate higher revenue by considering essential factors to succeed in this industry. Understanding the operational cost, production cost, compensations, facilities, structure, offered services, and the staff, together with an effective marketing strategy, you can be one of the successful entrepreneurs when it comes to the growing medical spa community.