Industry • Best Practice
How to Design Your Medical Spa Services Menu for Maximum Profitability
Mar.16,2022By Boulevard Staff
Give your clients a variety of service options that will take your profits to new heights.
According to the American Med Spa Association’s 2019 Medical Spa State of Industry Report, the average medical spa rakes in a whopping $1 million per year, and some can even reach heights of $4-5 million. Though those numbers did drop a bit when COVID hit the stage in 2020, we are seeing profits climb back up above and beyond those 2019 marks.
So how do you make your piece of this pie bigger?
It’s not as difficult as you may think. And it certainly doesn’t involve reinventing your medspa. The way to increase your profitability is by ensuring that your medical spa services menu has the options that clients want at the right price. (We know, but it’s easier than it sounds.) Let’s get into the thick of what you need on your medspa services menu so that you can refine it and maximize the revenue you’re already bringing in.
What’s on your medical spa services menu?
A recent study done by the American Society of Plastic Surgeons found that the most popular non-invasive cosmetic procedure in 2020 was Botox. And when we say “most popular,” we mean that over 4.4 million Botox procedures were performed that year.
Botox is not just a one-and-done type of procedure, which is why it has the potential to bring your medspa some great revenue. The cost of Botox ranges between $10 to $15 per unit, and the average number of units a client needs is between 30 and 40. That means you’re looking at a price tag of anywhere between $300 to $600 per client, per quarterly visit, which makes this a mid-to-high level item at your medspa.
So long as people want to look ageless as they get older, there will be a demand for Botox treatments, so if it isn’t already on your menu, it probably should be.
People are flocking to medspas for filler treatments. This type of filler specifically uses hyaluronic acid, which was approved by the FDA in the 1980s. And since 2000, the percentage of fillers like this has increased by 274%.
And this is a higher-priced item than Botox. According to the American Society of Plastic Surgeons, the average price of a syringe of hylauronic acid filler (such as Juvederm or Restylane) runs about $684.
This makes fillers more of an investment for your clients, especially if they’re getting their fillers done as regularly as is suggested. The average life of a filler is 6-12 months, so offering this procedure means you will have clients coming in at least every year to get more filler.
Laser hair removal
Shaving feels so 2020, doesn’t it? Though you may have the time to shave your body regularly, why would you if you could just laser it off instead? Many people feel this way, as laser hair removal is another one of the most popular items on a medical spa services menu.
This low-ticket item is a must-have for your spa menu. In 2020, the average cost of laser hair removal was $389. This varies depending on how much of their body a client opts to have the hair removed from, as well as how many different sessions of hair removal the client’s hair requires.
Thus, we love that laser hair removal is yet another procedure that requires multiple treatments. Some clients require up to eight sessions, and in order to keep the hair permanently gone, the client needs to come in for occasional touch-ups.
The bottom line? A low-ticket item that has the potential to bring you consistent money that will really add up.
When it comes to skincare, there are all sorts of treatments to choose from. However, some of the best results that clients see come from microdermabrasion, more specifically HydraFacial that helps to hydrate the skin too, so it’s left looking and feeling great.
The average price tag for microdermabrasion is $167 so this is a lower-end item for your menu. However, it can easily become a big-ticket item over time if your clients return for repeat treatment. Multiple microdermabrasion treatments are needed in order to get the results your clients are after, so you can expect that the results they see after one treatment will keep them coming back for more.
This term encompasses a wide variety of non-surgery procedures and aesthetic plastic surgery procedures that are intended to change the appearance of a client’s body. It can include things like tummy tucks, CoolSculpting, and more.
Body sculpting/contouring is hugely popular and the U.S. has watched its popularity rise 43% since 2017 and quadruple since 2012. And it comes at a pretty hefty price. According to the American Society of Plastic Surgeons, “the average cost of body contouring surgery can vary widely” and is largely dependent upon things such as the surgeon’s experience, which specific procedure is performed, and where the procedure is done (geographically speaking).
However, you can get an idea of the range. Something like CoolSculpting is on the lower end of body contouring and typically costs between $2,000 and $4,000 in total. And a different body contouring treatment such as a tummy tuck is on the high-end and averages $6,154.
As you can see, the most popular (and thus, profitable) medspa services cover a range of different wants and needs. Some are to make the lips bigger, while others are to make the tummy smaller. Some will cost your clients a couple of hundred dollars (we are looking at you, laser hair removal), others may potentially cost them up to $10,000 (that’s your cue, body contouring). In order to capture as many different clients as possible looking for different experiences and enhancements, it is vital that your medspa offer this wide range of treatments on its menu.
You don’t want to exclude the people with lower budgets from being able to get treatments, and at the same time, you don’t want to provide the people with higher budgets from being able to get the more expensive treatments they desire.
Numbers don’t lie
And how do you know whether you’ve nailed your medical spa services menu? By implementing a business management platform that gives you customizable reporting.
Customized reporting has the power to show you which treatments are doing the best at your medspa, and with that information, you can create a better idea of how many of each treatment you can do in a given amount of time (for the week, the month, the year).
Reporting will really drive the point home of the importance of having a variety of service offerings on your menu. It will allow you to see that offering treatments at different price points safeguards you against major drops in revenue if interest in your high-end treatments wane for a bit. In addition to that, the variety also helps to keep your schedule more booked so you don’t have chunks of time where no business is coming through your door. By mixing shorter treatments throughout your day, you can get the most of the spa space that you’re paying for, while maximizing the schedules of your staff, which is key for keeping your costs low but also for keeping your employees happy.
You can bring all of this and more to your medspa with the help of robust reporting like that offered by Boulevard. At the end of the day, maximizing your profitability goes beyond just offering the services that clients want, and into the idea of resource management.
Boulevard was built to help your business achieve profitability at scale without losing an inch of sanity. See for yourself! Get a free demo today.