A good general guideline is to keep your labor and direct costs around 50%. That will leave you 30% for overheads, which will result in a 20% profit result. If you aspire to these finances, your medical spa must be a healthy and viable business in the long term. I come from a long list of employees.
My father worked in the maintenance department at Belmont Park Racetrack. He wore a green worker's uniform every day. My mother stayed home raising five children and served tables at night to supplement her income. To make a profit, you first need to recover the costs of running your business.
These costs would include supplies, inventory, equipment maintenance, utilities, salaries and salaries. Especially if you have run your medical spa for quite some time, you can review your books and keep track of your regular expenses. To calculate the profit margin for your MedSpa, subtract your total expenses from your total income and then divide them by your total income. That's a question only you can answer, but to give you an idea of the position of other MedSpa owners, it's key to know that, according to the American Medical Spa Association, an average medical spa has a profit margin of 20-25%.
Speaking of upsells, you want software that allows you to offer contactless payments, as well as personalized reports to see how the different services, treatments and products work in your MedSpa. Running a MedSpa involves a lot more operating expenses than people think (and maybe more than they thought when they went into business). The first thing you need to be reassured about is that being the best medical professional in the world is no guarantee that you will manage a profitable medspa. Day spas are a great place to go when you need a day away from stress and are looking to treat yourself, but when you are looking for more long-term care and well-being, then a MedSpa is what you need.
By keeping these methods in mind, you are sure to succeed and turn your medspa into a 7-digit business in due course. 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. What is often neglected is how to make your medspa a place where your patients can enjoy the comforts. In addition, the way you promote your medspa is also a factor for others to see your business as a premium one.
If you've established your medspa well, you'll know it's time to open a new branch when there's an untapped market in a specific area. You must strike a delicate balance between the medical aspects and the spa environment of your medspa. Boulevard was created to help your MedSpa achieve revenues that go beyond the average income of medical spas. We're going to break that number down further so you can have a more detailed view of where your MedSpa stands with the rest.