Dear Dangerously in Love with Finance,
As a nurse practitioner, my team and I built a loyal clientele for my med spa in Washington State. Now, I am thinking of expanding my business and have a particular interest in selling retail skincare products. At this moment, the spa already has a membership program which contributes significantly to our revenues. However, I want to explore how retail products would further aid in stabilizing income for the spa.
My biggest concern is making the entire process work within the existing framework of the spa. For instance, how do I choose the right products to sell? How much inventory would I need to stock?
I want to expand our services but also need to make sure that they align with the integrity of the spa and the trust my team and I have built with our clients.
So the questions I want to ask are would incorporating retail skincare products into the med spa be beneficial for our business model? What impact does retail have on revenue generation for medical spas like mine?
I am committed to making the right financial decision by selling those products and expanding the med spa, all while remaining focused on our foundation principles of providing exceptional care.
Sincerely,
Searching for the Right Solution in Washington
Hello Searching for the Right Solution,
Before I begin, I would like to commend you on acknowledging your team and not focusing on yourself. Although, it is your business on paper, it is your team that keeps the spa operating successfully.
I understand the difficulties and challenges that come with owning a med spa in Washington State. Because of your high standards and high-quality care, I can see it has brought you success.
Now, let’s move on to something much more critical to your med spa’s development – Assessing new channels of revenue.
Retail skincare products are most definitely an attractive avenue for your medical spa. Let me explain why.
Med Spa Revenue: Understanding Retail
Med spas have certain elements that define them, and retail is one of them. Membership income, service income, and working clients pay are great, but they can be limiting because what if you or your staff can’t physically be there for service as revenue is usually service based. Retail items allow you to monetize even when you aren’t providing treatment.
Think about this: If your clients trust you enough to spend money on your services, they’ll trust your suggestions on products to use at home to sustain and improve their results. By carrying exceptional skincare products, you are not just retailing; you are enabling your clients to take better care of their skin between appointments, allowing you to extend your treatment services.
From a financial management standpoint, having a retail business is one of the easiest ways to broaden your revenue bases. Industry statistics suggest that retail sales can account for 20 to 30 percent of gross income in a reasonably operated med spa. Suppose that your medical spa has service and membership revenue of 500,000 dollars. With a good retail strategy, boast your spa’s revenues up from $100K to $150K. Such income can pay operating expenses, create investment opportunities, or simply put you as a medical spa owner in a position of greater financial stability.
Selecting Products and Keeping Track of the Stock
Your worry about selecting the right products is genuine. In this era filled with skincare brands, choosing a retail line that fits your medical specialty and your clients is critical. Look for medical grade products that are science based and suitable for different skin types. Encapsulated products also ensure that your clients come back to you. These products are not sold in big chain stores or online stores.
Inventory is another aspect that is difficult but important to handle. However, with proper consideration, you can try to lessen the burden. Start with selling your best selling complementary or post treatment products first. These can include sunblock, serums, and moisturizers that accompany many treatments. As time goes on, take advantage of your medical spa practicing management software to see which of your products are popular so that you can adjust your inventory as needed and avoid stockouts.
If managing your inventory makes you anxious, you can work with brands that drop ship for you. You can also use software that connects with the financial management element of your med spa. You will be able to see how your stock levels change in real time, avoiding wasted stock or too little stock.
The Emotional Impact: Changing the Dynamics of Client Interactions
Do consider that retailing a product comes with an emotional impact that transcends profits. Think about this, a client of yours walks out of your med spa looking radiant after a treatment, only to find it hard to keep the results because she is using the wrong products at home. By introducing her skincare line, you offer your client more than just an appointment; you become an integral part of her skincare routine.
I’ve worked with med spa owners who’ve told me how the retail side changed both their business and their clients’ lives. One med spa owner, I talked with in Seattle told me about how one of her clients suffering from severe skin problems was brought to tears when she was finally able to use a product line that worked for her. Her skin not only got better, but she also started becoming one of the most loyal customers of the spa, in addition to telling everyone she knew about it. This is the motivation we look forward to in this field, right?
I hope this help. If you have any other questions, please reach out, as this is what we do…
Much love,
Mindful Financial Tips:
Advice: Make Sure You Stick to Your Core Mission
It is obvious that integrity is something that is important to you, and it should be. Retail is not about selling products for the sake of making a sale, but for being able to improve your client’s results while also being true to your brand. Put a note out there explaining the reasoning behind your recommendations so your clients will understand, and train your staff to do the same. When implemented correctly, retail sales are not just a means for increasing revenue; they reinforce the brand, promote confidence, and improve the client experience.
Take it step by step: Start small, track your sales, and adjust as needed. And most importantly, keep your clients’ best interests at heart.
Ready to take your med spa to the next level? Contact us. Discover how retail skincare can boost your revenue, enhance client trust, and streamline your financial management. Start maximizing your med spa’s potential today—explore expert tips and strategies now!”
This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at [email protected]