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3 Keys to Boost Your Medical Spa Profits With Retail

Contact Author Alex R. Thiersch, JD, Founder/Director of the American Med Spa Association

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Boost Your Medical Spa Profits With Retail

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Medical spa treatments and procedures will always be the bread and butter of your practice, but retail product sales have a vital place in the overall success of your business. 

Terri A. Wojak, director and educator of True U, outlined the benefits of instituting a skin care program in a medical spa at the Medical Spa Summit at January’s Face & Body Spa Conference & Expo. She revealed how selling retail skin care products can boost your business in three important ways. 

1. Profit Margin of Products 

After factoring in the cost of consumables, labor, electricity and other details, the profit margin on many medical spa treatments can typically hover around 10%. Retail products, however, can yield a margin of up to 40%, according to Wojak. 

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As industry expert Bryan Durocher, of Durocher Enterprises, stated at the AmSpa Medical Spa Boot Camp in Chicago, “So many people are in touch with top-line revenue and not their bottom-line profitability.” 

Retail products, however, can yield a margin of up to 40%.

For example, a five-star restaurant may be known for spectacular food and may charge a premium for that meal, but it will still be making up to 65% of its profits on alcohol sales simply because of higher profit margins. Supplementing treatments with skin care products in your medical spa can establish a highly lucrative revenue base in a similar way. 

2. Retention Rates 

Client retention is hugely important for many reasons. For instance, it’s both easier and less costly to retain current customers than attract new ones. Additionally, repeat customers will spend from 20% to 60% more than new customers, and their spend per visit will increase the more they return as you continue to build trust. 

Repeat customers will spend from 20% to 60% more than new customers, and their spend per visit will increase the more they return as you continue to build trust.

There are many ways to increase retention in your medical spa but, according to Wojak. One of the easiest is through retail skin care sales. She noted that, on average, a client who does not purchase a product with his or her service returns only 10% of the time. Those clients who purchase one product return 30% of the time and the retention rate for clients who purchase two products can be as high as 60%. 

Properly integrating a home-care plan with your patients can pay huge dividends as they continue to return to you. 

3. Improve Treatment Results 

Stellar treatment results also increase the rates of customer retention, and offering skin care products that pair with your treatment menu can improve your patients’ procedure outcomes

“Healthier skin responds better to treatment,” said Nealy Skeldon, of Environ Skin Care. “The healthier the skin the better the result.” 

Skeldon advises creating packages on your menu of treatments with skin care products bundled in to give your patients the best treatment results and to increase their likelihood of returning. 

For information on how to integrate retail skin care into your business, plan to attend AmSpa’s Medical Spa Business Summit at the Face & Body Spa Conference & Expo Northern California, August 26-28, 2017. 

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