While doctors in a doctor's office may be hesitant to sell products, people who work in a medical spa or spa have to sell products because the real margins are in retail, Durocher says. 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. We will return to the process step by step. It is important to track and hold staff accountable for pre-booking because it helps the provider have control of their schedule, generates future business, and creates consistency and stability within the medical spa.
Medical Spa's gross profit margin calculation follows the same idea; simply subtract the 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.