How profitable are medical spa franchises?
According to the American Med Spa Association, the average annual revenue for medical spas in 2022 was $1,982,896.
What can you do to increase the revenue of your med spa franchise? A common tactic to increase profitability is to add new treatments to your spa menu.
Does investing in additional services make sense for your franchise?
How can your med spa franchise introduce new treatments while also getting a return on its investment?
Let’s explore.
Offering High Demand vs. Profitable Treatments
Before expanding your medical spa’s service menu, it’s crucial to consider both client demand and profitability. While some popular treatments might seem like a sure bet, they may not offer the highest return on investment.
For instance, skincare services dominated the med spa market in 2020, making up 60% of all procedures.
Therefore, it’s not surprising that some of the most popular services are still:
- Botox
- Chemical peels
- Dermal fillers
- Microdermabrasion
- Microneedling
- Photo-facial pulsed light (IPL)
While these highly demanded skincare treatments account for the most share within the market, they’re not necessarily the most profitable option.
However, despite their popularity, these services may not be the most profitable option for your spa.
According to IBIS, massage and bodywork treatments lead the pack in revenue generation, grossing a whopping $12.6 billion in 2023. This dwarfs the $3.0 billion and $2.2 billion generated by skincare services and spa retail sales, respectively.
Adding New Services to Differentiate Your Spa
Offering unique services is a powerful strategy to not only increase your medical spa’s revenue but also carve a niche in the competitive market. Imagine attracting clients seeking a holistic approach to wellness by providing a package that combines fitness, nutrition, and stress management.
However, adding new services requires investment. New equipment, specialized technicians, and staff certifications might be necessary. To maximize the return on this investment, consider streamlining your spa management.
Leveraging Technology for Smarter Growth
Invest in tools that track the impact of changes on your profitability. For instance, spa management software like MyTime allows you to create staff management profiles and monitor individual productivity and revenue generation.
This valuable data helps you to identify which new services are performing well and adjust your approach accordingly.
Marketing New Treatments for Maximum Impact
Once you’ve invested in exciting new treatments, ensure your existing and potential clients know about them. Streamlining your marketing efforts is key to maximizing your return on investment.
Targeted Marketing with Real Results
Consider utilizing a spa management software like MyTime that goes beyond basic marketing tools. MyTime can create detailed client profiles based on past behavior and preferences. This allows you to identify potential customers who might be interested in specific new treatments and directly notify them.
But MyTime’s capabilities extend beyond targeted promotions. Its integrated system tracks transactions and inventory, allowing you to create targeted marketing campaigns and seamlessly monitor their impact on your bottom line.
This valuable data lets you see which marketing strategies are most effective in promoting new services.
Measuring Success: Tracking Profitability of New Treatments
Adding new services is just the first step. To ensure long-term profitability, it’s crucial to track the performance of your offerings.
Questions like:
- How long do treatments take to complete?
- Are there enough clients interested to justify the investment?
- Are we generating a healthy profit margin?
MyTime: Your Spa’s Data-Driven Partner
Fortunately, software like MyTime automates this process. With MyTime’s built-in analytics and reporting, you can track performance by monitor key metrics:
- Technician Time: Track treatment completion times to identify areas for efficiency improvement.
- Client Interest: Gauge customer demand for new services and tailor your offerings accordingly.
- Profitability: Analyze revenue and cost data to determine the profitability of each treatment.
By regularly reviewing these analytics, you can make informed decisions about your service menu. Consider conducting periodic audits to determine:
- Profitability: Are specific treatments contributing positively to your bottom line?
- Menu Optimization: Do you offer more services than necessary? Streamline your menu to focus on high-performing treatments.
- Pricing Strategy: Are certain services underpriced? MyTime’s data can help you identify potential price adjustments to maximize profits.
The medical spa industry is dynamic, but with data-driven insights, you can adapt your offerings to stay ahead of the curve. MyTime empowers both franchisees and franchisors to make strategic decisions by providing clear analytics on service performance and investment returns.
Increase Revenue With MyTime Spa Software
New treatments can attract clients, but profitability requires more. While popular skincare remains a mainstay, consider unique services to stand out. However, managing new staff and tracking earnings efficiently is crucial.
MyTime software simplifies this. This all-in-one solution tracks spa profitability and key business aspects. Manage inventory, bookings, transactions, marketing, and analytics seamlessly.
At the same time, you can gain valuable insights to maximize profits.
Run your med spa smarter, not harder, with MyTime.
