Are you searching for information on opening a medical spa business and making it profitable within your first year?
Or are you thinking about buying an existing medical spa business or selling one?
In this video series, we showed our social media audience how to succeed in their business journey by sound and timeless strategies we’ve been using for over 20 years.
Industry Trends and Statistics
I really want to share with you the statistics from 2020 and 2021, so that you can get an idea of what happened in the US and globally, to our industry during the pandemic. How that’s playing out now, as well as whether we feel like we’re ready to do more hiring or equipment purchases, based on your capacity and performance.
So what did those numbers come in looking like? Was it just your practice or was this tough all over?
There were over 15.6 million cosmetic services in the US, and the overall industry was down about 15%. So globally, we looked at about $59 billion in 2021, and they’re projecting in 2028, $117 billion. This industry has been growing and it is looking like it will continue to grow.
So let’s get to some fun facts. I’m sure that if you guys are in this industry, you’re always curious to know what the top five services are.
Top 5 Surgical Services of 2021
- Rhinoplasty
- Blepharoplasty
- Facelift
- Liposuction
- Breast Augmentation
Top 5 Cosmetic Services of 2021
- Toxins (Botox, Dysport, etc)
- Fillers
- Chemical Peels
- Laser Hair Removal
- Intense Pulsed Light (IPL) Treatment
There were a couple of areas that didn’t show up on these lists that I was a little bit surprised about and wanted to make sure and mention. Those were feminine rejuvenation and muscle building treatments. Both are extremely popular and a couple of the easier things to sell. I think it’s worth looking at if you haven’t gone into that area yet.
Steps to Take for Q4
You are likely going to get a lot of pressure in Q4 to buy equipment, and to take advantage of that 179 tax exemption. Looking at the services above, it may be worth it to take a look and consider offering some of the Top 5 Services. It’s also important to follow additional steps:
- Look at your books with your accountant and see if you need that kind of a write-off. If you’re getting a great deal, that’s fabulous, but you still need to do the work of looking at your current capacity usage for your staff and your current equipment.
- You need to look and see where you are with your revenue mix? Where are your different revenues coming from? Is that a profitable setup for you?
- Cost of goods are important. If you’re looking at things like injectables with a 50% cost of goods, and retail with a 50% cost of goods, and then you get some sort of a treatment where there’s maybe no disposables, other than paying for the equipment, then you want to be growing all three, but keep in mind what things are actually getting you a net profit.
Summary:
In summary, these industry statistics are extremely valuable to know. It shows us that there is a rapid growth coming for this industry. As we look forward, now is the time to plan, look at where you’re the most successful, to cross-reference that with your profitability, and know where you are operating at.
- How far out are people booking?
- What are your average tickets?
- What are your retention rates?
- If you are at 100% capacity, what does that number look like?
- Are you hovering around 80%, if so, then you probably should be looking at maybe adding more staff or adding different kinds of services.
If you need to take an effort or an extra step to boost the income, there are all kinds of free resources on our website. Grab that revenue predictor tool if you’ve never used it, because the first step is knowledge and knowing your numbers. How do you know if you’re doing better if you’re not tracking how you’re actually performing? So if you haven’t used that yet, now would be a good time to start doing that, so that you can really understand your numbers as you start doing your projections for the future.
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