Earn more money for your medspa by providing profitable treatments, analyzing business reports, and tracking important metrics

With almost $18 billion in annual revenue, medical spas in the United States are booming right now. If you own a medspa or want to open one, you could potentially earn a lot of money — if you have the right business plan. To maximize your medical spa revenue, you don’t need to radically reinvent your business. In fact, you mostly just need to remember the fundamentals:

• Set strategic, value-based pricing

• Build a strong client retention plan

• Regularly review reporting to ensure profitability and operational efficiency

If you follow these steps, you’ll be off to a great start.

Consistently increasing revenue is the key to maintaining a successful medspa, whether you’re planning to reinvest in your team, expand to a new location, or build a financial cushion for long-term stability and growth. By following a few simple best practices, your medspa can thrive in a crowded market.

Optimize your budget

To maximize your medspa revenue, start by thinking about how much you could realistically earn. How much do medspas make? That depends on a variety of factors, including your size, your staff, and your location. The 2024 Medical Spa State of the Industry Report is a good place to start, though. Let’s go over some figures:

• The average medspa revenue is $1,398,833 each year

• Medspas have an average profit margin of 20% to 25%

• Owners or directors at medical spas earn an average annual salary of $232,369

Remember that these are averages, so they may or may not be realistic for your particular business. Still, if your numbers are way off, it might be time to think about how you manage your expenses.

Revenue is the total income your business generates, while profit is what’s left after subtracting expenses. Increasing profit isn’t just about bringing in more — it’s also about spending smarter. One way to do that is by consolidating your tech stack. If your medspa uses three different systems to manage client profiles, inventory management, and payments, you’re probably paying more than you need to. A unified medspa management platform streamlines operations and reduces monthly costs. That can lead to significant savings over time, which you can reinvest in business growth, marketing, or team development.

Speaking of monthly budgeting, repeat clients account for about three-quarters of medspa business. If you haven’t developed personalized treatment plans for your most frequent visitors, now is the time. Talk to your clients and learn about their long-term aesthetic goals. You can work with them to schedule monthly treatments and can even offer package pricing or membership incentives for clients who commit to a full regimen in advance. This helps them achieve optimal results while also building predictable, recurring revenue and boosting client retention.

For more information on medspa income and expenses, check out Medical Spa Owner Salary: How Much Can You Really Make?

Boost your revenue with memberships and profitable treatments

If you’re looking for revenue optimization opportunities for your medspa, remember the basics. Increasing your revenue per client starts with offering more value through service bundling, add-ons, and curated retail products. Each of these contributes to a higher average ticket and stronger client outlines. Start by testing one strategy, tracking your key performance indicators (KPIs), and gradually adding in additional steps. These techniques should help your business grow sustainably.

• Offer membership programs: Instead of purchasing treatments à la carte, clients can buy medspa memberships. These paid subscriptions entitle clients to guaranteed monthly treatments at a slight discount. Membership programs can double your repeat visitors and get clients to spend up to 35% more per visit.

• Sell high-margin treatments: Low-margin treatments involve ongoing costs due to expensive, disposable supplies. Replenishing these supplies can have a negative impact on profit margins. High-investment treatments, such as laser therapy, require substantial upfront equipment purchases, but benefit from lower per-treatment costs over time. High-margin treatments, such as laser therapy, rely on equipment that you buy once and use for years. Medspas need a mix of low- and high-margin treatments to attract a steady stream of clients, but high-investment treatments often provide steadier revenue to support operational expenses.

• Communicate with clients: The medspa industry is all about relationship building. Regular communication between appointments is essential to maintaining engagement and encouraging repeat visits. Use personalized texts and emails not only to schedule future treatments, but also to check in on how your clients enjoyed their last sessions. You can also share exclusive offers with them. These touchpoints build loyalty, increase client lifetime value, and keep your medspa top of mind.

• Curate your retail products: Clients may go several weeks between treatments. Offering professional-grade skincare and body care products is an effective way to help them maintain results at home and feel their best. Focus on high-end goods that they couldn’t simply find in a supermarket or department store.

• Train your staff: Your staff members aren’t simply helpers. They’re trusted advisors for your clients and brand ambassadors for your business. A knowledgeable staff can be the difference between a one-time visitor and a loyal client. Make sure your employees can make personalized treatment recommendations and keep the lines of communication open between sessions.

• Create a marketing plan: Client referrals are a powerful source of new business, but expanding your reach requires multichannel marketing. Your marketing plan should include:

  • A professionally branded website

  • Targeted social media campaigns

  • Community events

  • Educational workshops

Track the performance of each strategy using KPIs to optimize your marketing efforts and maximize your ROI.

Creating custom long-term treatment plans, which we discussed in the previous section, is also a great way to build client loyalty and increase your earnings. Remember that these strategies take some time to work, so be patient and consistent.

Read Boosting Your Bottom Line: 7 Proven Revenue-Generating Tactics for Medical Spas for more details on each of these tips.

Review, understand, and analyze your business reports

When you’re looking for medspa software, choose a program that can generate detailed reports — they’ll help you take the guesswork out of running your business. Reports can tell you exactly how much money you spend and earn each month, which is useful by itself. But you can take much deeper dives into the data for even more valuable information. Reports can tell you about your:

Financial performance

• Profit margins by treatment and retail product

• Membership program profitability and ROI

• Revenue trends, including seasonal fluctuations

Operational efficiency

• Staff productivity and utilization rates

• Inventory usage and supply waste

Marketing effectiveness

• Conversion rates for each marketing channel or strategy

• Individual campaign ROI and lead sources 

Analyzing this information is a skill, so don’t expect to find every hidden opportunity to increase medical spa revenue overnight. But if you consistently analyze your monthly reports, you can identify shifts in expenses and client behavior over time. 

To learn how to generate, read, and analyze reports, check out 5 Reasons Why Understanding Reporting is a Must for Medspa Managers.

Measure your success with KPIs

By calculating seven important metrics, you can tell at a glance whether your growth strategies are paying off. Depending on how you run your business, some of these metrics will be more important than others. But if most of them are getting better over time, you’re probably on the right track.

Financial performance metrics

• Medspa profit margin is how much money your business makes after expenses

  • 100 * (gross profit of your business / total revenue of your business) = medspa profit margin

• Average revenue per client is a snapshot of how much each existing visitor pays for a treatment

  • Total revenue during a time period / total number of clients during that time period = average revenue per client

• Revenue per hour is how much your entire medspa earns during each hour it’s open for business

  • Total revenue in a time period / total number of hours open during that time period = revenue per hour

Client retention metrics

• Rebooking rates measure how often new clients turn into repeat guests

  • 100 * (total number of new clients who rebook after their first appointment / total number of new clients) = initial rebooking rate

  • 100 * (total number of clients who rebook after an appointment / total number of clients) = ongoing rebooking rates

• Membership rates refer to how many clients choose to subscribe to membership programs

  • 100 * (total number of clients / total number of members) = Membership rate

  • 100 * (total number of members / total number of members who end their memberships) = membership churn rate

Sales and marketing metrics

• Marketing return on investment (ROI) measures how effective each one of your marketing tactics has been

  • 100 * ((growth in sales attributable to marketing - marketing costs) / marketing costs) = marketing ROI

• Retail-to-service ratio describes how much your medspa earns in retail sales compared to client treatments

  • 100 * (total retail sales / total service sales) = retail-to-service ratio

Operational efficiency metrics

• Employee utilization rate refers to how much time workers spend with clients and how much time they spend on clerical work 

  • 100 * (Hours booked with clients / hours worked overall) = utilization rate

Medspa Metrics: What to Track to Boost Growth and Profitability explains the real-world applications for each one of these formulas.

Maximizing your medical spa revenue takes a combination of strategic planning, data-driven decision-making, and a customer-centric mindset. With a well-defined budget, a targeted marketing strategy, and the right medspa management software, you can streamline operations and drive sustainable growth. 

The medspa industry continues to grow by more than $1 billion annually, fueled by rising demand for personalized, results-driven care. The opportunity is real, and with the right tools and vision, your team can capture it and thrive.