What Is the Average Med Spa Revenue? Strategies To Exceed Industry Benchmarks

The average med spa revenue for a single-location medical spa is just under $2 million. According to the American Med Spa Association, this is up almost $500,000 from five years ago. Med spa industry experts don’t expect this financial growth to slow down soon, either. 

Many healthcare professionals and private practice owners, including optometrists, plastic surgeons, dermatologists, and physical therapists, are starting med spas to diversify their services and boost revenue. Offering aesthetic and wellness treatments allows them to tap into a growing market while enhancing patient satisfaction and loyalty.

The global med spa market is currently worth a whopping $18.6 billion, and it’s projected to be worth $78.4 billion within 10 years. This should make med spa owners very happy.

But before celebrating, ensure your business is set up for long-term success. By doing this, you can come up with more realistic business goals, forecast growth more accurately, and even make more informed decisions.

What Is the Average Med Spa Revenue?

The average med spa revenue has been on the rise. Even though the number of medical spas in the U.S. has increased dramatically — from 5,431 in 2018 to 8,841 in 2022 — revenue continues to go up.

Getting a better understanding of the revenue in the medical spa industry can help make med spas profitable.

Medical Spa Industry Overview

The American Med Spa Association reports that the average med spa revenue in 2022 was $1,982,896. This works out to roughly $121,632 in monthly revenue.

This revenue has gone up quite a bit over the last decade. The average medical spa revenue stood at $1,722,551 in 2021 and just $1,526,382 in 2018.

As more revenue has come in, the average med spa owner’s salary has, too. Med spa owners can make an annual income ranging from $300,000 and $375,000 annually.

Factors Influencing Med Spa Revenue

While the average med spa’s revenue is nearly $2 million, not every medical spa can generate this type of revenue and a healthy profit margin. At the same time, some generate well over $2 million and enjoy better profit margins to boot.

Several key factors determine average medical spa revenue, including:

• Location
• Services offered
• Target market
• Marketing

Benchmark Comparison for Successful Medical Spas

The average med spa revenue is higher than the average annual revenue of other businesses involved in wellness and aesthetics. For example, the medical spa industry’s average revenue of $1,982,896 is higher than the $380,300 in revenue for chiropractor offices. It’s also higher than the $924,000 in revenue for traditional spas.

These industry trends showcase the potential successful med spas have if you can create a high enough profit margin.

Key Factors Impacting Average Med Spa Revenue

Simply opening up a med spa requires a significant initial investment and won’t guarantee that you start generating the average med spa revenue right away. Your revenue may change based on a handful of important factors. Be sure they’re on your radar.

Location and Demographics

Many business experts will tell you that “location, location, location” are the three most important factors when starting any business.  Finding the right location for a medical spa is essential since it will affect everything from clientele to operating expenses.

Geographical Influence

A med spa’s physical location will have a huge impact on its revenue. Generally speaking, one located in an urban area can generate a higher revenue than a rural option.

However, don’t assume this will always be the case. While higher-income areas yield higher revenues and higher profits, med spas in an underserved area could provide better growth potential overall and have relatively low-cost startup expenses.

Demographic Targeting

In addition to choosing the right physical location, you should also target the right demographics with your business. Figure out what your ideal demographics are and tailor your spa services to them.

A few examples might be:

• Gender-specific services
• Anti-aging treatments
• Wellness programs popular in a particular area

Medical Spa Service Offerings and Pricing Strategies

The medical treatments and other services you offer clients will impact your average med spa revenue. Not all spa services, aesthetic treatments, and medical procedures will provide the same profit margin, so it’s important to find services that benefit both your clients and your bottom line.

Service Mix Impact

When you’re first starting your business, get to know which services will generate the most business. Cosmetic treatments like facials and chemical peels and anti-aging treatments like dermal fillers and Botox injections won’t go out of style anytime soon.

From there, work the services with a higher profit margin into the mix to improve your med spa’s revenue. Laser treatments, such as laser hair removal, and skin rejuvenation services are great examples of this. Many people pay a premium for more advanced med spa services.

Dynamic Pricing

“How much will potential clients actually pay for our services?” is a question the average medical spa owners want to answer as soon as possible when opening new med spas. You also want to embrace dynamic pricing.

You can do this by:

• Creating tiered services to provide opportunities to upsell clients
• Establishing membership programs to generate more consistent revenue
• Putting together spa service packages that provide clients with more value while improving profit margins

Med spa owners with thriving businesses often swear by taking the membership program approach, in particular. As the American Medical Spa Association points out, starting a membership program can increase the number of times clients visit your med spa each year. It could also cause them to spend more on services and products, with one spa seeing a 35% spike in retail sales among clients signed up for membership programs.

Marketing and Client Retention Strategies

Studies suggest over 80% of med spas use digital marketing. This showcases the immense importance of using digital marketing and client retention strategies to put your med spa on the map.

Digital Marketing Channels

Digital marketing can drive more traffic to your medical spa’s website and improve revenue. Utilize effective marketing strategies, such as med spa SEO. This will involve creating original content for your site, making your site more responsive, and utilizing tools like Google Business Profile.

Local SEO is especially important for med spas. You can make your med spa stand out within your city by filling your website with localized content.

Client Retention

You don’t want clients to visit your medical spa once and never come back again. Ideally, you should retain clients and welcome them back at least a few times each year to maximize revenue.

Maintain higher client retention numbers by setting up loyalty programs, providing personalized communication, and delivering excellent customer service. It’s much easier to keep your revenue consistent when you have many repeat customers and don’t always need to rely on new clients.

Maximizing Med Spa Revenue with Technology and Operations

Your medical spa is probably already using technology to cater to your clients with the latest services. Why not utilize it to make your med spa more efficient and profitable, too? See how technology can send your med spa revenue soaring.

Streamlining Operations With Technology

Investing in med spa software from Weave can streamline your medical spa’s entire operations. This can improve efficiency and increase customer satisfaction.

Efficiency and Reducing Operating Costs

Weave’s advanced medical spa software can make your business and its licensed medical professionals more efficient and cut operating costs by taking care of tasks like appointment scheduling, billing, and payments. This can reduce overhead costs and increase net revenue.

Client Experience Enhancement

Your clients can enjoy more satisfying experiences when you offer online scheduling and automated reminders. They’ll be more likely to make repeat visits, which can increase your medical spa revenue.

Leveraging Data for Strategic Decisions

There is a wealth of data available to the average med spa owner. Use it to your advantage.

Revenue Analysis Tools

Use revenue analysis tools to:

• Monitor your revenue streams
• Identify med spa industry trends
• Make key strategic decisions

A med spa owner should use service performance analysis and financial forecasting for med spas as well.

Client Behavior Insights

Keep an eye on client behavior and look for any insights you can use to fine-tune your medical spa’s marketing efforts. Pay close attention to:

• The peak times for visits
• The most popular services
• The prices paid for services

You can tailor your medical spa’s services to your clientele by gaining insight into how clients behave.

Contact Weave To Help Increase Your Average Med Spa Revenue

The average med spa revenue is impressive. But as a med spa owner, you can generate even more annual revenue than usual by using strategic planning, service diversification, and technology.

Explore how Weave’s comprehensive communication and operational tools can help streamline processes, enhance client satisfaction, and boost your medical spa’s average revenue. Get a demo today!